Nicole Galloway, the auditor of Missouri, said that the delay in the process of paying the income tax refunds for the state is mainly because they do not have enough cash. Galloway is a Democrat and she published an audit regarding the handling of the taxpayer refunds for the state. This is despite the many attempts of Governor Eric Greitens, a Republican, to stop the process. According to the office of the governor, the audit is considered as a cheap ploy with political motivations. This misunderstanding between the two parties is being watched closely by audit insurance company as they see what unfolds next.
Galloway said that in the previous fiscal year, around 555,000 of individual taxpayers were not able to receive their refunds on time because of the delay on the state’s part. Around 155,000 of the taxpayers are refunded very late that the state has to pay an interest worth $420,000.
The number has increased because the previous delay affected 485,000 after the refund was not given within the deadline of 45 days. This is during the time when Jay Nixon, a Democrat, was governor of the state. The audit revealed that for that batch, the delayed payments were given to 83,000 people but with an interest amounting to $306,000.
In contrast, the office of Galloway looked at the 2008 fiscal year – it was a time when the state was able to refund 80 per cent before the middle of April. Ever since 2015, the state has issued a mandate that interest should be given to taxpayers if they do not receive their refunds within 45 days. Prior to that, the state can give refunds within 90 days and pay no interest at all.
Galloway said that the problem has been present for two administrations and the problems regarding the cash flow of the state should be solved. It is also important for them to pay the individual taxpayers of the state of Missouri. The challenge will not be overcome if these issues are not solved. In the case of taxpayers, they have been paying diligent taxes and hired audit insurance company to protect their finances in case there are problems with their filing, intentional or not.