Inquiries on fed child tax program swamped DOF

Inquiries have swamped the Department of Finance on the heels of reports about the federal child tax credit program that has been extended to the Northern Marianas involving about 3,700 families, according to officials.

Gov. Pedro P. Tenorio welcomed the good news and vowed to work closely with the department to immediately pay people who are qualified to receive such refunds.

“From all indication we will get between six to ten million dollars and this will benefit people who are entitled to participate in this program,” he told reporters yesterday in an interview.

“I hope we will be able to work closely with the finance [department] so that people will receive their entitlement as soon as possible,” added the chief executive.

But a statement issued by his office yesterday afternoon urged the public not to call DOF to inquire about implementation of the program whose details it said are still under review.

“The department is working with Internal Revenue Service to solidify a procedure on how applications will be received and processed,” the statement read.

“Details of how taxpayers may qualify and apply for the credit will be announced to the public within three weeks,” it added.

The finance department is devoting its resources to implementing this program as soon as possible, it said. “The public is asked not to make phone or personal inquiries until applications are available.”

IRS officials disclosed during a news conference Tuesday that the federal agency is laying the groundwork for the implementation of the special tax credit given to U.S. taxpayers who have three or more dependent children under 17 years old.

Both federal and local officials expect about $10 million payment to about 3,700 families on the islands for both 1998 and 1999 refunds.

Under the program, individuals or couples who have three or more children under the age of 17 are entitled to a tax refund of $400 per child for 1998, and $500 per dependent for 1999 onwards.

The tax credit will be paid to recipients out of funds from the U.S. Treasury although the claims will be filed to the DOF’s Revenue and Taxation Division for processing, according to officials.

Payment can be made within 45 days from the filing date, they said.

The island government, on the other hand, is stepping up public education campaign to help residents understand the new federal program which will also include guest workers who have three or more U.S.-born dependents.