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Check mailbox. Repeat. N.C. tax refunds are taking longer
State's cash flow causes delay, but officials say that they will arrive
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Published: March 7, 2009
RALEIGH - Larry O'Dell, a tax accountant in Winston-Salem, was wondering where his North Carolina tax refund was.
Usually, O'Dell said, taxpayers receive state refunds between five and 10 days after they file their income taxes electronically. But when he went online to check on the status of his refund, he found what many taxpayers are finding this tax season: Refunds are taking a little longer than usual.
State officials stress that all taxpayers who are owed money will get the proper refund -- but they may need to be patient for a few weeks. The culprit is the economic meltdown and the resulting squeeze on state finances.
"We're watching the budget very carefully," Kenneth Lay, the state's revenue secretary, said yesterday. "Carefully managing the refund process and carefully managing the budget -- it's just part of sensible financial management."
Gov. Bev Perdue and the heads of state agencies are scrambling to close a state budget shortfall of more than $2 billion by the end of the fiscal year on June 30. The shortfall is caused mainly by lower-than-expected tax revenues in the bad economy.
Lay said that the time it takes for people to get their refunds depends on many factors, including the complexity of their taxes. But he said that a good rule of thumb this year would be for people to expect refunds to take four weeks to arrive.
For taxpayers who file their taxes on paper, rather than electronically, refunds could take even longer than that, according to the Web site of the N.C. Department of Revenue.
That could be frustrating for taxpayers who are counting on their refund checks to make ends meet.
Chrissy Pearson, Perdue's press secretary, said that people should rest assured that the checks are on the way.
"It's not a matter of if people will get their tax refunds, it's just a matter of when," Pearson said. "The tax returns are coming out in a steady fashion, and it may take a little bit longer because of cash-flow issues."
State law requires that the state issue income-tax refunds by June 30.
Several other states, including California and Kansas, have postponed or stopped the processing of refund checks because of state fiscal crises. California said yesterday that payments are resuming.
O'Dell said he understands that the recession is hurting state finances -- but he noted that it is hurting private businesses and individuals, too.
"My opinion is they should refund people their money as soon as reasonably possible," he said.
Asked if a four-week delay qualifies as reasonable, O'Dell answered: "I would not say it's unreasonable -- however, it's not the same as it has been in the past."
■ James Romoser can be reached at 919-210-6794 or at jromoser@wsjournal.com.
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