No interest on late tax refunds until June

Raleigh, N.C. — 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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Latest Comments

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!

lilloan
March 10, 2009 5:58 p.m.

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.

nobama
March 10, 2009 4:37 p.m.

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

Caveman93
March 10, 2009 4:16 p.m.

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.

squawk08
March 10, 2009 3:33 p.m.

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.

mmania
March 10, 2009 3:25 p.m.