Although it is not a good idea to view a tax refund as your yearly savings account, many do look forward to receiving their money. Modernization of the method your refund is received has evolved in recent years. Many folks will get a “direct deposit” of their refund. The positive side to the direct route is a faster, safer way to receive your refund, and the down side? Well this January some refund recipients found this route can work two ways. The Dept of Revenue giveth and then they taketh away!
On January 20, 2011, the Georgia Department of Revenue issued 2010 Georgia income tax refunds by direct deposit. After realizing there was an error the Georgia Department of Revenue issued the following statement:
GEORGIA DEPARTMENT OF REVENUE
Suite 15116, 1800 Century Blvd, Atlanta, GA 30345-3205
For Immediate Release: January 26, 2011
Contact: Department of Revenue (404) 417-2212
STATEMENT FROM THE DEPARTMENT OF REVENUE
ATLANTA—The Georgia Department of Revenue issued the following statement today:
On January 20, 2011, the Georgia Department of Revenue issued 2010 Georgia income tax refunds by direct deposit. The Department became aware of a computer system error in the calculation of refunds. To ensure that correct payments were made to taxpayers, the Department issued a “stop payment” on those refunds. Due to the computer error, any funds deposited with a taxpayer were rescinded and returned to the Department.
The Department has corrected the computer programming error and is commencing to reissue the refunds. The Department is working with various financial institutions concerning any banking charges made against taxpayers’ financial accounts.
The Department will continue to provide updates concerning the Department’s efforts in this”
If you happened to be one of the taxpayers that had a “stop payment” on their refund you will be able to submit a form to be reimbursed for bank fees assessed due to the funds being rescinded. Follow this link to the form: https://etax.dor.ga.gov . Hopefully this will be an avenue to resolve any issues caused by this error. Word to the wise – open a savings account this year and only pay the amount of required tax. This way you will accrue interest that belongs to you!