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Cash shortage is delaying some $6M rebate checks
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Posted on Feb 03 2012
Lt. Gov. Eloy S. Inos said the government has yet to release an estimated $6 million worth of 2010 tax rebate/refund checks, as well as federal stimulus checks, and there is no guarantee that they will all be mailed out before the deadline for filing 2011 income tax returns in mid-April.
Inos said while the Department of Finance tries to release checks on a regular basis, there’s just not enough funds to pay everyone their rebate or refunds.
“There’s no guarantee everything will be paid out soon. It’s a cash flow situation,” Inos said.
The government started releasing 2010 rebate/refund checks in mid-October. Total tax refunds and rebates for 2010 is some $23.4 million. If the government has yet to pay some $6 million more, it has already paid out over $17 million.
Finance Secretary Larrisa Larson said that Finance released some $700,000 refund/rebate checks this week alone.
The administration has asked for people’s patience as they wait for the release of their checks. Inos reiterated that Finance gives consideration to those with emergency needs such as medical treatment.
Taxpayers interviewed said they have been waiting for their checks since last year, hoping they would get it in time for the holidays. They said they would use the check to keep up with their household bills such as power and water.
Rosemarie Bantilan, 49, said after months of waiting, she finally received her federal stimulus check/rebate on Tuesday.
“Now I can settle some debts and help a child of mine put up a business,” Bantilan, a dressmaker and a mother of four, told Saipan Tribune yesterday.
Another taxpayer said she has been calling Treasury whether her check will be released soon, to no avail.
Another said she does not have an emergency so she will just wait for the check to come in.
“I am not in a hurry for that money,” she added.
Many taxpayers, including nonresident workers, have started writing to Finance, asking for the release of their checks to help pay for “emergency” needs.
A refund is for tax that has been overpaid or incorrectly paid, and is returned to the taxpayer, while rebate is for tax properly paid and is subsequently returned to the taxpayer under a rebate provision.
