NYS Officially Delaying Tax Refunds

It's official: NYS has hit the $1.25 B limit on tax refunds for the financial year ending March 31, 2009 and will NOT be issuing any more refunds until after April 1.

I've written about this possibility before so...deal with it.

The Clock is Ticking for 2006

If you haven't filed your income tax return for tax year 2006 and you are expecting a refund, the clock is ticking. You have until April 15, 2009 to file that return and get your refund. If you file after 4/15/10, you will NOT get any refund that may be due to you. Period.

Better Than New Car Smell...

...is the last car payment!

The '04 Elanta is now mine! Just shy of six years old, less than 45K miles, and in great shape. Let's see how much I can now save toward the next one!

Violence is NOT the Answer

We send our thoughts and prayers to the employees, families, friends, and neighbors of those involved in the attack on the Internal Revenue Service’s office in Austin, Texas.

More on NYS Tax Refunds

This is from the Albany Times Union:

The state currently limits the amount of tax refunds it pays in the first three
months of the year to $1.75 billion. Paterson is considering lowering that
threshold to $1.25 billion because the state must roll $1.4 billion into next
year's budget to close a current year budget gap.

So far the state has paid out $293 million in 281,000 tax refunds this year.

The state has until June to pay the refunds before they start accruing
interest.

The governor is expected to make a decision in the next few
weeks [regarding delaying refunds].

Many people know that the Federal government pays out refunds like clockwork - publishing a full schedule of refund dates for e-filers through the end of October every year. NYS, however, has consistently refused to issue a similar schedule, but officially never really said why. Here's your answer: until April 1 (the start of the state fiscal year) there is a fixed amount of money available for refunds. So, it's really "first come, first served".

All of this aside, you should still remember: don't spend it until you see it and start planning now to not have to worry about this in the future.

Potential Delay in NYS Refunds: DEAL WITH IT!

New York State’s Governor has proposed delaying state taxpayers’ refunds to help fill a budget deficit; it appears that the governor has the ability to do this without legislative action. The media keep advising “file early”, with a hint of panic in the air. Here are some other thoughts:

NY is NOT alone! Several states have done this in past years (California) and are doing it this year (Hawaii). This is not a new concept.

Don’t file until you have everything you need! Rushing to file your taxes before you have all of your information from financial institutions will inevitably lead to the need for amendments later on.

Stop giving the state (or the Feds for that matter) a free loan! If you’re getting a state refund of more than about $100 per adult, you are over withholding and simply giving the state an interest free loan over the course of a year. Go to you personnel office and change your state withholding to reduce your refund next year.

Are you using your tax refunds as a way to save money? Grow up and learn to use a piggy bank or a savings account! Put aside $10 every pay period and you have $260 at the end of the year, regardless of whether or not NYS will be sending out checks or vouchers.

New York State’s government may have gotten itself into a fine pickle with its budget, past tax cuts, the recession, etc. And those of us who live here know that there’s very little that we can do about the state’s problems. But you can take control of your own financial situation. Stop depending on the federal or state government to save money for you – learn to do it yourself.

States and the Feds are Increasing Tax Scrutiny

As the Federal government and various states struggle with deficits, they are calling on their tax and finance divisions to increase compliance with federal and state tax laws. That mean increased scrutiny in many areas.

A recent article in the Times Union, the newspaper serving Albany, NY, talks about New York State’s push to hire more auditors, compliance officers, and computer experts in the Department of Taxation and Finance to increase efforts to “ensure everybody is paying their fair share of taxes,” according to a Budget Division spokesman.

Along with increased efforts in sales tax collection, including internet sales, the article quotes a “source with knowledge of the situation” that:

“Taxation officials are also stepping up oversight of private party auto
sales, where individuals are the buyers and sellers of vehicles.

“Tax officials are increasingly comparing the sales tax paid when a vehicle
is registered with the ‘book value,’ or broadly published prices of cars sold
and registered.

“For example, if the $6,000 price you declared on that 2005 Jeep you bought
from your brother-in-law is significantly less than the $12,000 it's probably
worth, you might get a letter from the state.”

An Agency spokesman said that while the state has long kept an eye on such transactions, the agency is increasing surveillance and that a program that checks every private party vehicle sale would require legislation.