Delayed state tax refunds prompt charges of corruption, lying, even cover-ups

...I don't usually blog about state politics, unless it's education-related (for my sister blog, Guilford School Watch). But strangely, I didn't hear Gov. Perdue talk AT ALL last night about the state's inability to process 2008 state income tax refunds. I blogged about this recently on Triad Media Watch. At least it's in the news now.

But I still thought we'd hear something last night. We didn't.

And the delayed tax refunds scandal is prompting charges from corruption, to cover-up, even to outright lying by NC Dept. of Revenue officials.

It's all over the news now, across the state:

News & Observer:

Secretary of Revenue Ken Lay described the problem as a temporary backlog, because the department is having to tap special accounts to pay refunds, he said.

"Everyone who is due a refund will get a refund," Lay said in a prepared statement, saying he expects progress in the coming weeks.

The disclosure of the refund logjam this week has angered some taxpayers who called the Revenue Department in recent weeks and were told that there were no delays, that checks were taking several weeks to process.

"Don't lie, and that's what I felt like they’ve done," said James Stephenson, who works for a specialty contractor in North Charlotte and was told in two recent phone calls that refunds were now taking four to six weeks. "You call into the state and they tell you one thing and then their boss says, 'We have the money, we’re just slow paying it out.'"

Rocky Mount Telegram:

Gov. Beverly Perdue announced last week she was taking $300 million from four dedicated pots of money and putting them in the state's general account as a precautionary measure to ensure there was enough to pay bills through mid-April.

The delay has created an inconvenience for taxpayers waiting for checks or electronic refunds.

"A lot of people were relying on this money to get some bills and stuff paid off, and it's like the money is being held hostage," James Barefoot of Raleigh told WRAL-TV. Barefoot said he's been waiting more than a month on his refund, which he plans to use to pay medical bills from a recent surgery.

WRAL:

WRAL.com has received more than 145 complaints from taxpayers since first reporting the refund delay. One person wrote, "People's homes, cars, food and medicine depend on it." Another said, "This isn't your money and never was."

Niya Brown said she has called the Department of Revenue and gone online but has been unable to get any answers about the delay.

"If you could call the Department of Revenue and speak to a representative instead of an automated line, that would help," she said.

ABC-11 WTVD:

Last year by this time, the Department of Revenue says it had already sent out 1.4 million checks. This week, only 1.1 million will have gone out. A spokesperson admitted the state is hundreds of thousands of checks behind schedule - and that it's being forced to take money from special accounts just to keep up.

The sour economy is to blame, and it's leaving a bitter taste in the mouths of taxpayers.

"I felt like they should let us know," said Cotton. "It's just pretty scary. It lets you know the economy is far worse than what you may have thought."

State officials say if you're one of the many expecting a state refund, don't worry, you'll get it. But, instead of taking two weeks, it could take up to six.

Mark Binker, News & Record:

Look, no one - and I mean NO ONE - is going to have any sympathy for the revenuers. I'm certainly not one of them, especially since I was lied to twice by a state employee on the topic.

But I'd rather have the state delay payments than be bouncing checks from here to the Outer Banks.

I e-filed mine on January 31, got my federal refund back two weeks later. Still waiting for my state refund.

Stay tuned...

E.C. :)