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No interest on late tax refunds until June

Posted March 9, 2009

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— The state Department of Revenue has until the beginning of June to issue tax refunds to North Carolina taxpayers without penalty, an agency spokeswoman said Monday.

Kim Brooks said state law provides the department 45 days after April 15 – or after a late return is filed – to issue a refund before interest starts accruing on the refund.

WRAL News first reported last Thursday that the department was taking longer this year to issue refund checks so that it maintains a positive cash flow.

With unemployment lines growing and people curbing their spending, income, corporate and sales tax collections have slowed, State Controller David McCoy said. In January, for example, personal income tax collections were down 21 percent from a year ago.

The state began delaying refund checks in January and is now about 300,000 checks behind the pace of recent years, Brooks said.

McCoy and Secretary of Revenue Ken Lay said all taxpayers due a refund would eventually get their checks. It's unclear how long they might have to wait, however.

The Department of Revenue has issued 1.1 million checks so far and is issuing more each week, Brooks said.


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  • lilloan Mar 10, 2009

    This is absurd!!! As a recently laid off worker looking for a job, I have been waiting on my refund after filing on Feb 2nd! That refund is all I have to pay my mortgage until I find a job. Now I have to borrow from my HELOC to pay my mortgage because the state can't afford to give me MY money!!! Ludicrous, I will claim 99 exemptions on my next W-4 so this NEVER happens again!

  • nobama Mar 10, 2009

    I plan to charge the state of North Carolina interest for every day that my income tax refund is late. I also plan to charge the state of North Carolina a penalty if my income tax refund is late. Additionally I reserve the right to impose jail time to anyone at the North Carolina division of Revenue for willful failure to pay my income tax refund.

  • Caveman93 Mar 10, 2009

    Took me 30 days to get my refund....30 DAYS!!!

  • squawk08 Mar 10, 2009

    I say its time that we withhold paying our taxes until we feel like it, they want to stimulate the economy but yet they withhold income tax checks, which most families use around this time or during spring break when the kids are out. I say we all do 1 day without buying anything in the state.

  • mmania Mar 10, 2009

    What I find interesting is if you owe NC and are one day late not only do you get charged interest but they will find you have defaulted and will start garnishment proceedings. Sounds like a do as I say not as I do.

  • Nobody but Carolina Mar 10, 2009

    All right, so it's likely 2 with holding that I'm doing with the way that reads and it does look to allow for adjustments for itemizing. Thanks for the info regardless of how temperamental it was given by one.

  • FE Mar 10, 2009

    "Being single, I can claim only 1 withholding."

    That simply is NOT true! The Form W4 where you provide your employer your withholding information has an attached worksheet where even a SINGLE person can legitimately claim more than one withholding exemption. This would apply where you have mortgage interest, property taxes, significant contributions, or excessive medical expenses.

    Look at page two of the form at this IRS web site, and then send a copy to your employer ASAP!



  • Bendal1 Mar 10, 2009

    You can claim more deductions than you are allowed, you just might end up paying the state in April instead of the other way around if you do. My wife and I claim several more deductions and that way minimize how much money we (or they) have to pay out when we file our tax returns.

  • carolinarox Mar 10, 2009

    Being single, I only claim 1 with holding. I don't see how I can legally go above that to reduce the amount with held from my paychecks. Quite frankly, it's being able to itemize for the last 7 years being a homeowner that's created a refund for me from the state and feds. Once that evens out to the standard then I'll be back to even coming out of my paycheck and what is owed by me for the tax year.

    I'm single and itemize and claim 4 exemptions on my NC-4. I don't think there is anything illegal about it until you get up to 10+ exemtions. It works out pretty well, I owe the state less than $100 and I can live with that.

  • ranquick Mar 10, 2009

    There should NOT be ANY interest on any tax in either direction. This is just another way to rob the people of the the State and US.