Delayed NY State Refunds Ready By August?

NY State Says All Refunds By August
NY State Says All Refunds By August

According to the New York State Department of Finance and Taxation, the remainder of all delayed refunds should be ready by “early August”:

The wait for state tax refunds has progressively grown longer, reaching 12 weeks and beyond this year, said Phillip Goldstein of CPA firm Goldstein Lieberman & Co. in Mahwah, N.J. He blamed the delay on state labor cutbacks.

“They have fewer people working there, which is holding things up,” Goldstein said of the state. “And this isn’t just a New York issue. We’re seeing this in every state across the board.”

Geoffrey Gloak, spokesman for the state Department of Taxation and Finance, cited the inexperience of a new vendor processing the returns, the New York State Industries for the Disabled.

“The tax department is assisting the vendor to both speed processing and provide quality assurance,” according to a statement issued by the department. “Recovery of the department’s costs associated with this effort and interest payments (to taxpayers) is provided for in the contract and will not come at an additional taxpayer expense.”

If you still haven’t received your refund from NY State, hopefully you will soon. Have you received your NY State refund yet?  Let us know in the comments section below.

Source: Record Online


August 5th:  NY State still has approximately 40,000 tax refunds to issue to NY state residents.  Tax Department spokesman Geoffrey Gloak recently said that these “…remaining refunds [will go] out in the upcoming days…”.  I guess it all depends on what their definition of “upcoming days” is.


October 9th:  All remaining refund delays to end as of today, Oct. 9th 2013. 

NY State Still Dealing With Refund Delays

NY State Is Backlogged
NY State Is Backlogged

“Where’s my refund”! Is a common cry from NY State residents these days, and according to the state for good reason.  After using Bank Of America to process refunds for the last 18 years, BOA decided to get out of the  tax business all together and did not renew their contract.  So what was Albany to do?  Outsource the job of course!  These subcontractors and not-for-profit groups  are backlogged with refund requests which is what is causing the delay for so many New Yorkers.

It has been nearly 3 months since the end of the tax season and all refunds should have been processed by now.  Luckily, some NY taxpayers may be entitled to receive interest:

By law, interest is paid on refunds that are issued after May 30 for timely filed returns. Interest is paid only on that part of the refund resulting from over-withholding. To prioritize delivery of the delayed paper refunds, the tax department is assisting the contractor in both speeding up the processing and providing quality assurance. Recovery of the department’s costs associated with this effort—including staff overtime and interest payments—is provided for in the contract, and will not come at additional taxpayer expense, the tax department noted.

“In New York State, you’re required to pay interest 45 days after the filing due date of April 15, so beginning May 31 we’re paying interest on refunds,” said [NY State Department of Finance spokesmen Geoff] Gloak. “The interest goes back to April 15, so interest payments over time are provided for in the contract and won’t come at taxpayer expense.”

The majority of these delays are for taxpayers that filed a paper tax return as opposed to those who filed electronically, but there are still taxpayers out there that did file electronically waiting on their refunds.  No surprisingly, residents are mad including Fred Slater; CPA at the NYC firm MS1040 LLC; particularly that private taxpayer data is being handed over to a third party:

“I have all kinds of questions about how much information they were given to process [tax returns]. In other words, you’re giving your private information to a third party. What were they given? The state is doing everything in its power to push people to efile, and they repeatedly contradict themselves on this, and force things. Not all of the returns are efile-able to start with, by their own system restrictions, and then they go through this process of pushing you to efile, but their system is not up to snuff.”

If you need to get in touch with NY State regarding your tax refund click here.  If you require assistance with your NY State Tax Return, please contact an R&G Brenner professional today.

Source: Accounting Today