California - Refunds or IOU's?????

In a press release on January 16, 2009, California State Controller John Chiang announced that he will be delaying the payment of corporation franchise and income tax and personal income tax refunds by 30 days. According to the Controller, eroding revenues and the inability of the state's governor and Legislature to address the state's chronic structural deficit has "destroyed the state's cash reserves." The internal special funds and money from Wall Street that the state has been borrowing in order to pay its bills for the last 17 months have almost been exhausted. The Controller warned that if no corrective action is taken by the governor and the Legislature, the state may have to further delay the payment of the tax refunds or issue IOUs.

Now, I don't know about you, but it sounds like if the state owes you a refund, you may have to hire a collection agency to go after the state to get your money. I mean, isn't that what governments or creditors do when you owe them money?

In other words, if you were projecting to receive a refund on your 2008 tax return,or had a protective refund claim filed for the unconstitutional LLC FEE, don't expect to receive your refund any time soon.