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LONG WAIT IS OVER Last batch of EITC checks out
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Posted on Aug 14 1999
Taxpayers patiently awaiting Earned Income Tax Credit can expect new checks in the mail within the next few days, representing the last batch of payment processed by the Department of Finance to meet its financial obligations for tax year 1997.
Completing the entire EITC payment, the checks were mailed this week to a total of 2,045 recipients, mostly from low-income families, according to a statement issued by Finance Sec. Lucy DLG Nielsen.
Taxpayers who filed for EITC refund and have still not received their checks should contact the Division of Revenue and Taxation to determine if there were any problem with their claims.
Nielsen said the release of the checks “is welcome news to parents who have children returning to schools.” The Public School System began its new school year last Monday.
Gov. Pedro P. Tenorio expressed relief over the release of the checks, which has burdened his administration over the last two years due to the serious financial crisis plaguing the Commonwealth.
“I promised the people that we will release the checks in due time and we did,” he said in a statement. “I thank them for their patience and understanding while we search for funds to pay them.”
More than $6 million were raised by the Tenorio administration to pay out EITCs, but it decided to spread the payment in three installment schedule — one in April, another in June and the last this month — due to limited funds.
The first batch of EITC recipients received 25 percent of their claims, or a minimum of $500. However, taxpayers whose claims were $500 or less got the whole refund. Payment totaled to $1.5 million.
Lack of cash resources held up release of EITC checks for tax year 1997 since last year. In 1998 taxpayers did not receive their refunds and rebates until July due to shortfall in the special trust account.
The government has one more year to pay out the tax refunds covering tax year 1998 as the Legislature enacted a law that scrapped the payment of EITC as part of efforts to reduce financial obligations of the Commonwealth.
