The clean version is “damned fool bureaucrats”.
Several clients have emailed me lately to complain about late
refunds from manually, but timely, filed NJ-1040s. More so than in past years.
As a point of information – NJ filers can now check on the
status of their NJ state tax refund online at the website of the NJ Division of
Taxation (NJDOT). You can click here to
begin the process.
The clients whose refunds have been delayed were all expecting
paper checks. This is because NJ
taxpayers cannot request direct deposit on manually-filed returns – even though
a directly deposited refund is cheaper to process than a paper check. In order to request direct deposit a NJ
taxpayer must file electronically. To be honest, this makes absolutely no sense.
Since I cannot submit my client returns electronically as I do
not, and at this point will not, use flawed and expensive tax preparation software, whenever
possible, and when the client does not specifically “opt-out”, I file my client
NJ-1040s “electronically” via NJWebFile.
Unlike federal returns, I can submit NJ-1040s for full-year resident
taxpayers directly to the NJDOT online via NJWebFile. Unfortunately, there are many unnecessary
limitations on the returns that can be submitted via NJWebFile, and I am forced
to manually file a lot of NJ-1040s due to these limitations.
For example, the software for the NJWebFile program has never
been updated to provide for excess Family Leave Insurance employee contributions
– NJ taxpayers with two or more employers must file manually in order to get a
refund of excess FLI insurance withholding.
The State of New York purposely delays the issuance of paper
refund checks. NY wants taxpayers to
request direct deposit of refunds – which can
be done on manually filed returns. But New
York has clearly told us that this will happen.
I am not aware of any announced NJDOT policy of purposefully delaying
paper refund checks.
NJDOT has never been known for its competence, or even its
honesty. While the IRS will contact
taxpayers, or issue refunds, almost immediately after receiving an overpayment,
double payment, or payment that it cannot properly identify – NJDOT, I believe
purposely, remains silent, hoping that the taxpayer will not discover the over
or double payment and the State can keep the money.
The fairly new Director of the NJDOT, Michael J. Bryan, has
proven to be a big disappointment.
Nothing has changed under his leadership. He did create a NJ version of the IRS
Taxpayer Advocate Service, but my correspondence to the NJ Taxpayer Advocate on
the systemic problem identified above, and a specific example thereof, has been
totally ignored.
Have any of the NJ tax pros reading this also experienced
excessive delays in the issuance of client paper refund checks?
TTFN
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