Scores of New Yorkers have contacted the Daily News in the past week, complaining that they are still waiting for their state refunds. The crippled economy has made the delay even more painful, many said…

By the end of the day Thursday, 1.78 million refunds totaling $1.4 billion had gone out the door. During the same point last year, 1.82 million refunds totaling $1.48 billion had been processed…. “The numbers are very close to last year,” Bergin said. “They are not indicative of any slowdown or delay.” That doesn’t mean some people’s returns haven’t been delayed. Processing started a week later than normal because of a federal change, Bergin said.

Others have been delayed because filers made mistakes that need to be corrected or a return was randomly selected as part of the state’s more aggressive fraud and accuracy review, he added.

“If an application for refund or credit is filed with the commissioner of taxation and finance… the commissioner of taxation and finance shall grant or deny such application in whole or in part within
6 months of receipt of the application…”

“If any overpayment of tax…credited or refunded within 45 days after the last date prescribed for filing the return of such tax…or within 45 days after such return was filed, whichever is later…, no interest shall be allowed under this section on any such overpayment…”

Taxpayers can save thousands in penalties and not be prosecuted for criminal tax fraud if they agree in writing to pay back-tax debt and become compliant in future years.

Weitzman said he only learned about the program last month.

It was in legislation passed in this year’s state budget and is part of the state’s new tax enforcement initiatives.

“When I heard about this program, I felt that it was a win-win situation for everybody – the state, the county and the individuals,” said Weitzman, who added that the program covers 42 different taxes, including sales taxes, of which the counties will get a portion.

Hidden in the market’s hideous performance is a unique opportunity for investors to cut their tax bills for years to come.

Investors who sell beaten-down holdings can use those losses to offset taxable gains and often a portion of their income. Any leftover losses can then be carried over to lighten or even eliminate the capital-gains-tax load in future years.

Unclaimed refunds totaling approximately $1.3 billion are awaiting over a million people who did not file a federal income tax return for 2005, the Internal Revenue Service announced today. However, to collect the money, a return for 2005 must be filed with the IRS no later than Wednesday, April 15, 2009.

Especially in these tough economic times, people should not lose out on money that is rightfully theirs,” said IRS Commissioner Doug Shulman. “People should check their records, especially if they had taxes withheld from their paychecks but were not required to file a tax return. They may be leaving money on the table, including valuable tax credits that can mean even more money in their pockets.”