State Tax Refunds Delayed
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.
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.
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
|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
There is a credit balance on any tax year
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?
|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
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
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.
Updated information on delayed refunds will be available on our website ftb.ca.gov, and on our automated phone line at 800.338.0505.