Rebate checks out this weekend

In what appears to be an indication of stabilizing government revenues, the Department of Finance is poised at releasing the first batch of rebate and refund checks this weekend after experiencing delay in its issuance during the last two years.

Finance officials said the revenue and taxation division has completed the processing of the first batch of 1999 income tax refunds and rebates, which total 9,213.

According to a media statement from the Office of Finance Secretary Lucy Nielsen, taxpayers who have filed their ITRs by March 17, 2000 can expect their rebate or refund checks out this weekend.

DOF emphasized that it will not allow personal pick up of rebate or refund checks. “If you filed your tax return by March 17 and expect a refund or rebate, your check is expected to be mailed out by this weekend.”

According to finance officials, future releases of rebates and refunds will be announced as soon as the Division of Revenue and Taxation completes the processing of other tax returns.

DOF is also asking taxpayers who filed their ITRs beyond March 17, 2000 to refrain from inquiring about the status of their rebates until the filing date falls within the processing period.

“This will allow the staff at the Division of Revenue and Taxation to quickly process all remaining tax returns without interruption,” the finance department said.

Delinquent taxpayers will not receive their refund checks until they settle their outstanding taxes due the CNMI government.

“[Those who] have any outstanding taxes and other fees due the government at the Division of Revenue and Taxation or Division of Customs Service will not have their checks released until their tax delinquency has been resolved,” the finance department said.

Those who have issued bounced checks may not also receive their refunds or rebates until they replace their bad checks with either cash or cashier’s check. The government received more than 38,000 tax returns this year.

In the previous years, the amount that was processed first were the refund portion or overpayment of tax. DOF said that processing of ITRs will be on a first-in-first-out basis, depending on the filing date of the tax return.

When the Teno Administration assumed office in January last year, the transition committee had uncovered that the special trust fund has dipped to $2 million from $31 million as of end-1997.

The CNMI government issued about $30 million in total rebate and refund checks for both individual and corporate taxpayers in last year. Existing local laws oblige the government to release all refund and rebate checks by November.

The government’s issuance of rebate checks was delayed for more than two months during the last tax year. In 1998, the first batch of rebates was released in August when it is normally mailed out during the month of May.

The delay was apparently caused by the unavailability of income tax return forms which were issued April. The finance department usually segregates the tax returns filed by those who have outstanding financial liability to the government.

Gov. Pedro P. Tenorio has consistently assured that all rebate checks will be out by October, or before the law-obliged deadline, adding that there is no way the government will fail to release the money since it is guaranteed by existing laws.

The governor said the government’s financial managers have been instructed to set aside available funds to the Special Rebate Trust Fund in order to make sure that the money will be available.