Let’s penalize government for withholding tax refunds
Recently in a letter to the editor the writer stated his frustration with waiting 116 days to receive his state income tax refund. He also stated that it took multiple contacts to finally free up the money due to him.
I am now on my 91st day of waiting for my refund. It took the state 60 days to notify me that it needed copies of income statement forms that it had already received. In another matter after we closed our business, I found out that we had overpaid into our employee unemployment insurance. It took more than six months after two letters and two phone calls to finally receive that money. In both of my cases, the return amount was significant.
I would hate to think that this is a strategy by the state to withhold funds as long as possible. Maybe it pays off for the state when citizens give up trying to obtain their lawful funds.
There definitely is a tax penalty for paying your taxes late, but none that I am aware for the government when withholding our funds for long periods of time.