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State Tax Refunds Delayed

FTB Archive Disclaimer:  Archived content is not current and may contain broken links. It remains online for historical reference or research. The search function above allows you to search archived and current content separately. If you need archived content in a different format, contact us.

PURPOSE OF BULLETIN

Update to Public Service Bulletin 09-03 (January 16, 2009) and to inform staff on how to address questions about the delay of state tax refunds.

BACKGROUND

Due to the state’s persistent cash and budget problems, the State Controller announced that he will have to delay refunds for 30 days starting February 1, 2009, for Personal Income Tax and Business Entity taxpayers.

TAXPAYER INQUIRIES

Advise taxpayers that refunds are being held for individuals, business entities, and previous year HRA claims. The delay applies to current year tax refunds as well as any refunds on previous tax years. Previous tax year refunds could be a result of a return being filed, an audit adjustment, cancellation or adjustment of penalties, etc.

Effective immediately, follow these new refund delay procedures. The first scenario outlines procedures for accounts where there is a credit balance, but no refund is scheduled. The second scenario gives procedures for accounts that have a refund status of "SCHEDULED" on TI or APPRV CALC on BETS and the refund is delayed.

*Scenario 1 – A refund credit is displayed on the account (PIT or BE) and the refund is delayed.  Taxpayers will receive a message when they visit our website or if they call our IVR (PIT only) informing them their refund will be delayed.

Personal Income Tax/ Business Entity Tax – Where’s my Refund

IF AND THEN
CSR receives a telephone call from an individual taxpayer or business entity regarding a refund The taxpayer/entity 2008 tax return or any prior year return has posted to the taxpayer/entity account

AND/OR

There is a credit balance on any tax year

  • If applicable, CSRs will advise taxpayer/entity that their return has been received and its status (“Refund Pending”)
  • CSRs will not provide a processing timeframe for any refund
  • CSRs will advise taxpayer that due to the state's persistent cash/budget problems, the State Controller announced on Friday, January 16, 2009, that because of the state's cash shortfall he will have to delay refunds starting February 1, 2009 for Personal Income Tax and Business Entity taxpayers. Refund payments will resume when the State Controller indicates there is enough cash available to make refund payments.
  • CSRs will advise taxpayers that current information is available on our website and IVR regarding the refund delay

Scenario 2 – The refund status is SCHEDULED on TI or APPRV CALC on BETS and the refund is delayed.  Taxpayers will receive a message when they visit our website or if they call our IVR (PIT only) informing them that their refund was Authorized on a specific date.

Personal Income Tax/Business Entity Tax – Where’s my Refund?

IF AND THEN
CSR receives a telephone call from an individual taxpayer or business entity regarding their refund The taxpayer/entity 2008 tax return or any prior year return has posted to the taxpayer/entity account

AND

The refund shows a status of SCHEDULED on TI or APPRV CALC on BETS and the Total Check Amount on the Refund/Credit Detail Screen in BETS is blank

  • CSRs will advise taxpayer/entity that their return has been received
  • CSRs will advise taxpayer/entity that their refund will be delayed because the entire process to issue their refund could not be completed before February 1, 2009
  • CSRs will advise taxpayer/entity that FTB has no further information regarding the status of the refund
  • CSRs will advise taxpayer/entity that we have current information on our website and IVR regarding the refund delay

Individual taxpayers using the IVR or web application to check the status of their 2008 tax year refund will receive the following message if their refund is reflected as a credit on TI:

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.

ADDITIONAL INFORMATION

Updated information on delayed refunds will be available on our website ftb.ca.gov, and on our automated phone line at 800.338.0505.

 

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