Wanna know what CA is telling their taxpayers???

[CourtClerk]

What is the name of your state (only U.S. law)? Disbelief

I already knew CA wasn't going to be issuing refunds because we are broke - and they only owe me a small amount of money, but out of pure curiosity, I decided I would check the status of my refund online and see what explanation CA would give to us hardworking taxpayers. Below is the message I received:

Your return has been received and processed, however, your refund cannot be issued at this time.

Due to the state’s persistent cash and budget problems, the State Controller has directed FTB to stop sending refund requests to the State Controller’s Office for payment. Refund payments will resume when the State Controller indicates there is enough cash available to make refund payments.

For days, it would just say if you wanted information on your refund, you have to call the FTB. I guess they got slammed with phone calls and decided to give you this instead.

 

[LdiJ]

What is the name of your state (only U.S. law)? Disbelief

I already knew CA wasn't going to be issuing refunds because we are broke - and they only owe me a small amount of money, but out of pure curiosity, I decided I would check the status of my refund online and see what explanation CA would give to us hardworking taxpayers. Below is the message I received:



For days, it would just say if you wanted information on your refund, you have to call the FTB. I guess they got slammed with phone calls and decided to give you this instead.

I recently read that CA was going to be providing IOU's (basically) to their taxpayers for the refunds...its criminal.

CA taxpayers should, en mass, change their CA withholding to guarantee that for 2009, they will NOT have refunds...but not so far that they will owe large amounts either.

It kind of reminds me of Italy...taxpayers there don't get a refund for 5 years if their taxes are overpaid. They are astounded that in the US we can get them in less than two weeks.

 

[CourtClerk]

I recently read that CA was going to be providing IOU's (basically) to their taxpayers for the refunds...its criminal.

My mother has said that if she receives an IOU for her state tax refund, she will send it back to them with her property tax bill. Although funny, I told her not to play.

CA taxpayers should, en mass, change their CA withholding to guarantee that for 2009, they will NOT have refunds...but not so far that they will owe large amounts either.

I agree. I have been slowly but surely tinkering with my withholding each year to ensure I get less and less back. I don't want to owe a lot, but I don't want them holding onto my money either. At this point, they only me between $100 - $200 (number left out because it's not the world's business ), but I may go down one more number... I wouldn't mind owing so long as it didn't make me cringe.

It kind of reminds me of Italy...taxpayers there don't get a refund for 5 years if their taxes are overpaid. They are astounded that in the US we can get them in less than two weeks.

Now THAT'S ridiculous. CA usually (until this mess) turned around a state refund in a week. They are now saying that refunds are due no later than 45 days after April 15.

 

[Gimpdiggity]

Call them up and ask them if you can charge them the same interest and penalties that you would be charged if you sent them your money late.

 

[CourtClerk]

Call them up and ask them if you can charge them the same interest and penalties that you would be charged if you sent them your money late.

Maybe you missed this...

refunds are due no later than 45 days after April 15.

It's not late. In fact, it's not even due. However, yes, they do pay interest if the refund is late.

 

[LdiJ]

My mother has said that if she receives an IOU for her state tax refund, she will send it back to them with her property tax bill. Although funny, I told her not to play.

I agree. I have been slowly but surely tinkering with my withholding each year to ensure I get less and less back. I don't want to owe a lot, but I don't want them holding onto my money either. At this point, they only me between $100 - $200 (number left out because it's not the world's business ), but I may go down one more number... I wouldn't mind owing so long as it didn't make me cringe.

Now THAT'S ridiculous. CA usually (until this mess) turned around a state refund in a week. They are now saying that refunds are due no later than 45 days after April 15.

That's one of those ways that we simply do not understand how well we have it in this country. That doesn't make what CA is doing any less "criminal" in my opinion, but you have to wonder what else would not get funded/paid if the refunds went out as normal.

Aren't you a state employee? (or is it county in CA?) What would you choose if you had to choose between getting laid off for say, three months, and a bunch of other people getting their refunds in a timely manner?

 

[CourtClerk]

That's one of those ways that we simply do not understand how well we have it in this country. That doesn't make what CA is doing any less "criminal" in my opinion, but you have to wonder what else would not get funded/paid if the refunds went out as normal.

Well, there are a ton of things not getting paid at this moment. Not only has the state stopped paying tax refunds, but they have suspended payments on a lot of other things, including the quazillion social programs in CA. TANF payments have been rumored to be on that list. Whether they followed through on that is anyone's guess, but I have a very jaded opinion on TANF to begin with.

Aren't you a state employee? (or is it county in CA?) What would you choose if you had to choose between getting laid off for say, three months, and a bunch of other people getting their refunds in a timely manner?

We straddle the fence, actually. In some instances, we are state employees, in others, we belong to the county. We are the red headed step child of the state (no offense to red headed step children).

The last few times State Employees have been threatened with all kinds of stuff (remember the federal minimum wage threat of several months ago???), the courts were quick to send out a memo to all of its employees basically stating that the courts have their own budget separate from the state and none of that mess applies to us. This went out again when Arnie started talking about furloughing employees. Doesn't apply to us.

The courts have been through layoffs. We have seen voluntary and mandatory furloughs. Especially in this time, I wouldn't wish it on anyone, however, you don't balance the budget on the backs of those of us who pay taxes. We didn't cause this mess (but that's a different story for a different forum). You know who I would prefer to see laid off? The Governator and the rest of the legislators. All of them. They all deserve to lose their job over the mess they have caused.

Let's not forget, they'd all like to raise our taxes at this point. In a recession. Unbelievable.

/off soapbox

 

[davew128]

I am dealing with it on a case by case basis. If the amount is insignificant, I am proposing to people that the state pay it in due course. If it is significant, that it be applied to 2009 as an estimated payment and adjust withholdings for 2009 accordingly, assuming they wouldn't have otherwise made estimated payments.

As has been pointed out, the state has a lot of time before it is considered late and interest accrues. It SEEMS unfair because in today's age with e-fling, direct deposit, etc. people get used to fast refunds but it wasn't THAT long ago that it used to take a month or more anyway.

 

[irsos]

What is the name of your state (only U.S. law)? Disbelief

I already knew CA wasn't going to be issuing refunds because we are broke - and they only owe me a small amount of money, but out of pure curiosity, I decided I would check the status of my refund online and see what explanation CA would give to us hardworking taxpayers. Below is the message I received:



For days, it would just say if you wanted information on your refund, you have to call the FTB. I guess they got slammed with phone calls and decided to give you this instead.

How about the taxpayers that owe the IRS whose refunds would otherwise be offset and sent to the IRS. CA should pay the interest on that as well.

 

[tranquility]

If it is significant, that it be applied to 2009 as an estimated payment and adjust withholdings for 2009 accordingly, assuming they wouldn't have otherwise made estimated payments.

We've joked about this in the office here, but haven't done it yet. The taxpayer would have to file a different amount of withholdings from the federal which would result in a DE4. The employer would almost certainly know the DE4 was false or, the employee may need to claim more than 10 withholdings, each of which would require the employer to submit the DE4 to the FTB.

As a taxpayer protest, I love the idea. The state is choked out of funds as they don't get the withholding they expect and also have to deal with all the DE4s which flood in. Also, they can eat their IOUs instead of the taxpayers.