Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 40-year veteran tax professional Robert D Flach.
Tuesday, May 12, 2015
WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’ – TUESDAY EDITION
situation is not because of state budget problems – but because of taxpayer
“More bad news for those looking forward to
their state tax refunds. The state now tells us it will take even longer, up to
four months now, to get that check.
When we first reported this to you, the state said the
refunds will take eight weeks. That’s because the state tax office is giving
refunds more scrutiny to prevent fraud.
Two weeks after that, the state said refunds will take
10-14 weeks. Now, it will take 16 weeks, all for the same reason.”
How much will they
“Returns will earn four percent annually, or
one-third of a percent per month.”
Hey – that’s
certainly better than what banks are paying on savings.
* Hawaii is not the
only state that is taking longer to process tax returns.The NJ Division of Taxation has posted the
following message regarding 2014 refunds –
“We know you want your refund as quickly as
possible, but there is something you should know.
The Division of Taxation has made a commitment to
protect your personal and tax information.
The filing of fraudulent tax returns is growing.
Because of the increase in these tax filings, we are using more security
measures when processing returns.
All electronically submitted returns are reviewed to
make sure the information provided on the return belongs to the filer so your
refund is not sent to an imposter.
This means your return may take longer to process than
your tax preparation software may suggest, and it could take us more time to
send your refund than it has in previous years because we are making every
effort to protect your identity.
You will be notified in writing if we need additional
information in order to process your return.
Thank you for your patience as we work to make sure
that you get your refund – not someone else.”
While I have heard
from clients about delayed federal refunds, I have not been contacted about any
delayed NJ refunds.
“The report, from the Treasury Inspector
General for Tax Administration, recommends the IRS instead offer an online tool
that would make it easier for taxpayers to find out if they owe a “shared
responsibility payment” because they lack “minimum essential coverage” under
the health care law, and how much they would owe. Such a tool is already
available to IRS examiners and appears to work well at estimating the payment.
The TIGTA report suggests the same tool be provided on IRS.gov to taxpayers.
The IRS agreed with TIGTA’s recommendation and plans to look into providing an
online tool for estimating the shared responsibility payment.”
Will this online
tool also provide assistance in determining if the “unaffordable” or any other
exception to the payment applies?
* Jason Dinesen
will take two posts to answer the question “Why Make Estimated Tax Payments”.Click here for “Part 1”.
Jason tells us that
“contrary to the H & R Block
commercials, tax refunds are not a magical creation”.