Expecting A Tax Refund? If You Live In Hawaii Or North Carolina (And Soon New York) You Will Have To Wait

Tyler Durden's picture

Two weeks ago we warned readers who wanted to get 2009 tax refunds to file their taxes asap. It appears we were prescient. The state budget crisis is about to hit home. Again. Last year California delayed tax refunds due to simply not having any money which to refund. This year, the first states to announce a hold in refund processing for just the same reason are Hawaii and North Carolina. New York State is also considering a comparable action. If you have delayed filing your taxes, it is high time to do so now regardless of where you live as the same "money-saving" approach of halting refunds is likely about to become prevalent now that "everyone is doing it."

AOLNews reports:

Death and taxes may be life's only certainties, but many taxpayers
won't be able to count on a timely income tax refund this year, as
struggling states impose delays on refund checks to help solve their
budget crises.

As New York weighs a potential delay,
two other cash-strapped states, North Carolina and Hawaii, have already
announced they will put a hold on refunds until June and July,
respectively, allowing them to retain funds longer and cover their
budget shortfalls with hundreds of millions of dollars owed to
individuals and businesses.

The move will allow Hawaii to reallocate the $275 million it saves in the short run to balancing its $721 million deficit.
North Carolina's Department of Revenue, now in its second consecutive
year of refund delays, said slow collection of taxes contributes to the
delays -- and hurts an already $1 billion shortfall.

"We are managing the cash flow very carefully," North Carolina Revenue Secretary Ken Lay told the state's News and Observer newspaper. "We are managing the distribution of refund checks as well."

The refund halt will only apply to filings filed going forward, with existing refunds likely to be processed.

Both New York and North Carolina point out that delays will not apply
to those returns that have already been filed. New York has paid out
$293 million in refunds so far to 281,000 taxpayers; North Carolina has
issued more than $400 million.

But protest rages on, as the majority has yet to file.

Yet the sorry state of affairs in Wall Street host New York is the punchline here: it appears that not only will a refund halt be instituted by Governor Paterson, but far more draconian measures may be in store for New Yorkers.

A potential delay in sending out tax-refund checks would help the state from going broke before the end of the fiscal year, April 1.

The state faces a $1.4 billion deficit for the remainder of the fiscal year and is expected to delay aid payments next month to cover about $20 billion in bills for programs and services.

But Gov. David Paterson's office stressed it has not yet determined what aid payments would be deferred — or whether the tax-refund checks would be delayed.

In a quid pro quo, we expect various tea party activists to take to the streets demanding a commensurate change to the April 15 tax filing deadline.

h/t Steven

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E pluribus unum's picture

The news just gets better and better:

 

A new Marist Poll finds 26% of employed Americans say they are concerned about losing their job in the next year.

Read more: http://politicalwire.com/archives/2010/02/18/worried_about_losing_their_job.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+PoliticalWire+%28Political+Wire%29&utm_content=FeedBurner#ixzz0fueXTKVK

 

I assume that means that 74% of Americans are stupid.

mouser98's picture

no, just 54%, the other 20% already lost theirs.

E pluribus unum's picture

I guess the other 54% work at AIG. That fucker will be around long after my grandchildren are dead

Nick Utah's picture

>>>I assume that means that 74% of Americans are stupid.

Still rolling on floor laughing.....

deadhead's picture

I always owe NY income taxes every year and this year is no different.

I'll put the check in the mail on April 15 to those phuckers.

IF they owed me a refund, I would call my representatives HOURLY demanding my money. 

The hits keep coming and we are going to see more of this going forward.....in NY, the battle royale will be with the teacher's union and it will be a doozy with lots of spillover....

Rainman's picture

Arnie's been pretty quiet out here, DH. That's not good. Means he's  hatching an outflow moratorium bigger than ever before.

Local CA newspaper editorials are screaming everyday ( like the ZH comment board ) that something needs to be done now . A State spending on autopilot  is a crash coming soon.  

P Rankmug's picture

It can't be that bad out there.  The market goes up almost every day.

john_connor's picture

All hell is about to break loose.  And the scary thing is that this will just be a warmup.

Rainman's picture

Yeah, something is cooking. Even MSN posts a top headline " State Pension funds $ 1 Trillion in the red ". They usually have America Idol shit or a Tiger girly story on the top line. 

10044's picture

Bastards are ripping me off for NY state tax, total BS

SWRichmond's picture

http://www.news8austin.com/content/top_stories/default.asp?ArID=267299

Investigators: Pilot set fire to home before crashing into building
Updated: 2/18/2010 12:19 PM
By: Anna M. Gonzalez


CNN is quoting federal officials, saying a house fire in North Austin was started by the pilot of the plane that crashed into a nearby building 30 minutes later.


Initially it was reported the Austin Resident Agency Office of the FBI was housed in the building. However, the FBI’s offices are adjacent to the building. However, officials in Washington confirm that the building struck by the plane was home to about 200 employees of the U.S. Internal Revenue Service, including that agency’s criminal investigations division.

Anonymous's picture

Its time to change the national hymn !

"Jump you fuckers .... "

Mr Lennon Hendrix's picture

expect nothing.  that goes for all of us.

MarketTruth's picture

y/w and HUGE thanks Tyler for producing such an excellent resource of information.
h/t 2 u x 100.

And yes, American citizens should have had enough of the jabber jaw games from the PTUS and the Fed, then the Republik of Kalifornia STEALING another 10% of your hard earned wages as additional advance pay of taxes.... and too much more to mention here.

**********************

NATIONAL STRIKE
APRIL 15 to APRIL 18TH
TELL EVERYONE YOU KNOW
www.taxfree15

**********************

 

Anonymous's picture

You know, nobody forces you to live in a country with income taxes. Taxation is the grandest form of social insurance - instead of invoicing us individually when we need the police, the fire department, or the army, we pay a fixed percentage regardless of the services we consume. Of course, maybe you'd prefer the latter.

hedgeless_horseman's picture

If I order the soup does it mean the waiter can serve the table next to me the four-course tasting menu with appropriate wine pairings and expect I will pay for it all, gladly?

Stevm30's picture

No - the only force involved here is applied by people like you, who think they know better what to do with the fruit of MY labor, than I do.

Anonymous's picture

" instead of invoicing us individually when we need the police, the fire department, or the army, we pay a fixed percentage regardless of the services we consume. Of course, maybe you'd prefer the latter."

Yeah, and if everyone paid the same percentage, your fey fear-and-guilt-inducing paen might have made a bit of sense.

MarketTruth's picture

You might want to enlighten yourself by seeing where your income tax dollars go before making such a remark. If you knew the facts you would realize how very wrong the above statements truly are. Income tax is different than State/property tax, which is different than gas tax.. which is different from the tax you pay to.... (car, phone, electric, water, sewer, food, clothes... etc, etc and etc). 

Seriously, please, do some research and chime back in. We are all human and a mistake is nothing to be ashamed of. Please, take some time and study what all the various taxes go towards. My desire here is for you to realize the facts. Nothing more, nothing less.

 PS: The Boston Tea Party was against a 3% or so tax rate, yet there is more to this event than just the 3%....

**********************

NATIONAL STRIKE
APRIL 15 to APRIL 18TH
TELL EVERYONE YOU KNOW
www.taxfree15

**********************

Abraham Snake's picture

I would say your statement is probably true of countries like Sweden. The taxes are high but the citizens are happier and more satisfied with what they get in return. In the US, the citizens watch as their tax dollars are increasingly boondoggled away. I would rather have excellent public education, health care, housing, and consumer protections than rampant predatory business, crony capitalism, immoral wars, and unreasonable prohibitions.

Basically, in the USA, the citizens are paying taxes which are then largely used to wage cold war against the very citizens that paid the taxes in the first place. What's the long term expected outcome of that?

The new public elementary school looks remarkably like the huge new county jail in that both are windowless, made of concrete block, and are soulless. The school board is confrontational in spirit, says the children need these jail like conditions to keep them safe. What bullshit, only one building contractor ever wins these contracts. Oh, and the current trend is for police to fund themselves via fines ($300 minimum now for burned out light) and the fire department to fund itself via direct billing ($1200 avg per hour per truck).

RatherBFlying's picture

Simple to handle this: Check the box that says "Apply my refund to next year's taxes", then call payroll and have them turn off state witholding for while.

If you have a big State refund coming due to you... well... dude, wise up. Read ZeroHedge more regularly.

MarketTruth's picture

So you are suggesting giving away your refund money to the USA interest free while it has today's (higher) value and settling for small portioned same-funding amounts in the future when odds are the US dollar will have LESS value/purchasing power?

Add to that, smart investors stop all tax withholdings they can and in the future they pay money at the time it is due, thus you have control of said funds and can earn additional money with it up until the point you must pay out.

It is called Smart Money.

MarketTruth's picture

<deleted due to same message twice>

Wynn's picture

Here in Virginia our newly elected Governor is trying to close a 2 bn deficit for next year's budget, which starts July 1. The various localities here have already begun preparing for massive reductions in Education money by closing schools, layoffs etc.

But according to Obama, another depression is off the table, so not to worry, right?

BernankeCo's picture

Glaring VIOLATIONS= Bush+Paulson+Shelby+Dodd+Rubin+Greenspan+Summers+Geithner+ Bernake+ClintonThis elite group knows precisely why derivatives should have been regulated, and the dangers related to the use of excessive credit!

Some people believe Wall Street is a huge Ponzi scheme about to fold by late 2010

Shameful's picture

This is fantastic. Can't wait for the tax revolts. Happened a lot in the 30s but that chapter of history is not talked about because it makes the state look bad. Near minimum withholdings, probably should go and make it the absolute minimum.

Ben Graham's picture

It's no wonder North Carolina is in financial trouble.  Their revenue secretary is . . . . .  Ken Lay.

faustian bargain's picture

aolnews? really? like america online? ok...

Crab Cake's picture

Withholding a refund is out and out theft.

Had enough yet? 

Do as the man a few posts above suggests.  Stop working (April 15th sounds fine by me), stop trading and investing, stop paying taxes, take your money out of the banks, and don't pay your mortgage. 

Shameful's picture

All taxation is out and out theft, this is nothing new.

They will take what they can get away with. And lets face facts history has proven they can get away with a lot.

Gordon_Gekko's picture

I'm not sure those who got guillotined in the French revolution will agree with that assessment.

Shameful's picture

Yeah but look how much they took. And it's not like they got everyone either, and now the elite can fly to safety away from the mess they make. Also I don't expect a real revolt against the oligarchs and return to liberty to happen here. I don't see a fighting spirit in America. I look around and everyday I think "Where is the God damn outrage!?!?" Which is one of the reasons this guy is buying gold and looking for countries I could live in.

Anonymous's picture

Wonder if the guy in Texas (Dallas) was upset about his tax refund / foreclosure ? No reason to do stuff like that !!

Anonymous's picture

He posted his frustration on a blog
http://embeddedart.com/

Nick Utah's picture

Joe Stark, pilot of plane in Austin, TX, was fed up with the IRS and the government in general. This might be the tip of the iceburg.

Gordon_Gekko's picture

Via taxfree15.com:


WHAT THE HELL IS A "JOBLESS RECOVERY"??

 

Each and every american must be asking this question; if not, we deserve what's coming our way. Not only are the banksters RAPING you, they are making fun of you while doing it. Each and every American must STOP doing EVERYTHING on the 15th and bring the nation to a halt. Stop paying all debts and taxes. They cannot do ANYTHING if millions of people do it collectively.

BernankeCo's picture

With mass complacency to big government, nanny state initiatives people's constitutional rights will slowly be eroded.othing!" We live in a Financial Aristocracy and D1CTAT0RSHIP!

JT Marlin's picture

Maybe if we paid our taxes, instead of avoiding to pay them, and/or stop giving money to taxpayers for no reason -- think GWB's "stimulus".  Maybe then we would have money to spend.

However, I am wholeheartedly for raising the tax rates, as long as the hike in tax rates will equal more services to myself, the taxpayer. 

dnarby's picture

"I am wholeheartedly for raising the tax rates, as long as the hike in tax rates will equal more services to myself, the taxpayer."

And how well is your goverment doing at that?

Do you expect them to get better at this?  Or worse?

Gordon_Gekko's picture

I guess we all can look forward to S&P 2000 now.

Anonymous's picture

2 years running in N.C.

By law, interest starts accruing on the principal of the refund after 30 or 60 days.

drwells's picture

How unjust. Interest should only apply when we owe them money. I can't imagine what corrupt legislators actually made that into a law.

/sarcasm

Lndmvr's picture

Limbaugh actually said something about stop paying taxes today. I stopped 3 years ago. ( cause I don't make enough money).

BernankeCo's picture

Larry Blankfein sanctimoniously explained Adam Smith’s invisible hand. 

The future for the USA is very bleak; a future resembling that of a socialist country like Canada or UK, but far worse.

glenlloyd's picture

Seems to me that when a state doesn't pay it's bills on time a hit to the credit rating ought to be in order, afterall, individuals who are classified as "slow pay" take a hit.

This is one reason I made sure not to pay in a significant portion over what I owed. I had a sneaking suspicion that this year we would see many states do what CA did last year and either issue IOU's or delay refunds.

Perhaps I'll just issue the Fed / state an IOU for the amount I still owe them, how do you think that would go over? Probably not so well, but the rules should apply in both directions.

Anonymous's picture

6 states do not levy a state income tax. Feels good to live in one of them. No paying, no filing, no waiting for money....

Anonymous's picture

I think I know where some of my income taxes go - my buddy works for the federal government, gets every other Friday off, 3.5 weeks of additional vacation time, and makes a heafty salary to check up on all his cubical mates before settling into what sounds like a very 'Office Space' type day.

greased up deaf guy's picture

North Carolina Revenue Secretary Ken Lay told the state's News and Observer newspaper. "We are managing the distribution of refund checks as well."

 

sounds like a man that can be trusted.  sheesh.  is jeff skilling his undersecretary?