CA to hand out IOUs for tax returns?!

**knitnmom** · 01-08-2009, 09:31 AM

Boy am I glad we planned on not getting a refund this year! We changed our deductions to get more per paycheck, and boy am I glad now!

I don't know if they will actually do it, but that is the talk right now. I think I'll just continue to plan for no more tax returns just in case.

**StaceyS** · 01-08-2009, 09:38 AM

Wow! I know a lot of people who rely on that refund! This is why I make sure my deductions are accurate enough that I get back (or pay) as close to $50 as possible. I don't want them holding my money!

**Laura2** · 01-09-2009, 12:48 AM

I hope this isn't the case! We are really needing our tax refund to do home repairs. We are expecting a very large return this year too.

**Ilovesewing** · 01-10-2009, 10:02 PM

I wonder if they can legally do that? It isn't the states money they are refunding, it's the taxpayers. I see a big stink coming if they do this.

**Jenna** · 01-10-2009, 10:18 PM

Do you have a link to an article?

I lived in CA for part of the year, and have over paid on my state taxes (not intentionally, just an error fixed too late.)

I also wonder if I file early -- will that improve my chances of getting the return, instead of the IOU??

**MommyBliss** · 01-10-2009, 10:28 PM

I really hope not, I had planned to have some fun with that money.

**Gardengal18** · 01-10-2009, 11:28 PM

It's being said that CA is on the verge of bankruptcy so I'm not surprised. Ahhhnold has been said to ask the Fed Govt for a loan (bailout?). This is a prime example of why you want to fix your withholdings so that you don't give them a Tax Free loan or an excuse to send you an IOU.

I might ask our accountant when I go to see him in a few weeks to tinker around and see how much more we can put down in withholdings so we get the money upfront in our pay each week and don't wind up getting any more than maybe $100 return check the following year. Chances are if 1 state starts to think along those kind of lines others will try to follow suit

**knitnmom** · 01-11-2009, 11:15 AM

From what I'm hearing now, the sooner you file, the better your chances will be that you will actually get a check.

**jayneluvsmickey** · 01-11-2009, 11:25 AM

i moved to missouri in june of '01 and had to file both missouri and illinois taxes

i had some errors on the illinois one, but still was going to get a refund

they withheld it because they didn't have money to send the refunds until people who owed taxes paid them

**SheKat** · 01-11-2009, 08:26 PM

That stinks! If you owe them money I wonder if they would be happy receiving an IOU. Doubt it!

**fixer** · 01-11-2009, 09:20 PM

I looked at our taxes today. It looks as if we owe the federal government seven dollars and the state twenty. We try to get as close as possible with the goal of paying a little bit. To me, refunds are a waste of money.

**frugalnana** · 01-12-2009, 12:04 AM

My dh heard that on the news tonight, I was hoping someone would post a link. I think that would be awful to do that to people.

**omalleyc** · 01-12-2009, 08:44 AM

That's terrible! There's an article in the LA Times about it. I can't attach the link since I haven't made 15 posts yet, but if you google California iou tax refunds you will see the link.

I can't imagine being owed my own money by the state. Maybe we should hire collectors to harrass ahnold until we're paid.

**thehughughes** · 01-14-2009, 06:19 PM

I remember Idaho running out and waiting for tax payments to come in last year. It was first come first served, so I didn' t have to wait( did my taxes early). If I remember correctly their wasn't along wait.