Here is an emergency update I thought I would post since there is a lot of interest in it. This is all quoted from the Franchise Tax Board website. Hope it helps answer your questions about what is going on if you are waiting for your California tax refund check status. As any of this business changes or I get an update, I will let you know. My thoughts and prayers go out to everybody in California, the United States and the rest of the world who is out of work.
Kim Isaac Greenblatt
Due to the state’s persistent cash and budget problems, the State Controller announced on Friday, January 16, 2009, that because of the state’s cash shortfall he will have to delay refunds for 30 days starting February 1, 2009 for Personal Income Tax and Business Entity taxpayers. Refund payments will resume when the State Controller indicates there is enough cash available to make refund payments.
Frequently Asked Questions
Should I wait to file my return?
No. If you have all of the documents and information needed to prepare your return, you may file it any time through April 15 (or October 15, if filed on extension). The refund delay does not affect the return due date or our ability to process returns.
When will the refund delay be lifted?
It is anticipated that as soon as the cash and budget problems are solved, the refund delay will be lifted. Check this website for updated information on the status of the delay.
Once the budget is passed, will my refund be issued?
Not necessarily. Even though a budget is enacted, the state will need sufficient cash to pay outstanding debts, including tax refunds. Depending upon the circumstances at that time, there may be a delay before the state has enough cash to pay refunds.
Will you still honor my direct deposit request (DDR) when the delay is lifted?
Yes, your DDR will be honored when the state resumes the payment of refunds.
Is it possible that I will be issued an IOU?
If the state’s cash flow problems do not improve, the Controller may need to issue IOUs. If the Controller has to issue IOUs, you will receive a paper IOU warrant, even if you requested a direct deposit of your refund.
Are all refunds delayed or just 2008 tax year refunds?
All refunds are delayed, regardless of the tax year they apply to. For example, an approved refund claim for tax year 2006 will be delayed until the state’s cash and budget problems are solved.
Am I entitled to receive interest because of the delay?
It depends upon the length of the delay. For individual taxpayers, interest on current year refunds is only paid if your refund is not issued within 45 days after April 15, or the date that your return is filed, whichever is later. If you are entitled to receive interest on a prior year refund, you will receive it when your refund is issued.
Can I apply my refund as an estimated payment toward my 2009 taxes?
Yes, if on your 2008 return you request that your refund be applied toward your 2009 taxes, we will apply the amount you designate when we process your return.
If I owe for other debts collected by FTB, will my refund be applied toward that debt?
Yes. You will be refunded the difference, if any, once the delay on issuing refunds is lifted.