Where The Heck Is My Refund?

One of the most aggravating experiences connected with filing an Alabama income tax return is waiting on your refund. Over the last two or three years especially, as the funds shortage has exacerbated, the Department of Revenue seems to be later and later with the payment of refunds. Part of that is perception, of course, but there is no question that Alabama refunds generally get paid weeks or even months later than federal refunds for returns filed on the same date, especially those returns filed in the last couple of weeks before April 15. I'm not aware of any evidence of a grand design to hold onto taxpayers' money for cash management purposes. Instead, it just seems to be a case where the DOR cannot (or does not) process the returns it receives on a timely basis. For example, it is not unusual for an Alabama taxpayer filing a balance due return to note that his check to the DOR seems to take an inordinate amount of time to clear. Everything in the process moves slowly.

12 Weeks Is The Norm

In the Instructions for the 2004 returns, the Department advises taxpayers to wait 12 weeks after filing before expecting their Alabama refund. So, if an Alabama taxpayer filed his return on Friday, April 15, 2005, he should not expect to receive his refund until Friday, July 8. According to the DOR, it processes about 1.8 million individual returns per year, with more than 1 million of them showing a refund. 50% (about 900,000) of all individual returns come to the Department in the first three weeks of April. It's easy to see how things can get sticky, especially in these days when funding limitations preclude the hiring of temporary personnel to assist in processing returns. Under the Alabama Taxpayer Bill of Rights, the DOR is required to pay interest at the statutory rate on any refunds paid more than 90 days after the due date of the return.

File Electronically

So, what is the poor taxpayer to do? The state has his money, and he needs it, now. By far, the most effective strategy for getting your Alabama refund within a reasonable length of time is to file electronically. The DOR Instructions say that "... electronically filed returns are received and processed significantly faster than returns that were mailed in to the Department of Revenue." Our experience certainly bears this out. Almost all of our clients who electronically file also elect direct deposit of their refund, and they usually have the money in their checking account within two to three weeks of filing. The instructions cite other factors, such as filing early, avoiding bad Social Security numbers, etc; but nothing has as much impact on the length of time it takes to get your refund as electronic filing.

Tracking Your Refund

Just like UPS (almost), the DOR makes provision for taxpayers to inquire about their refund when they don't have it within the 12 week period. There are actually three methods available:

• You can file Form IT:489 with the Department by mail, and will receive a response by mail. Frankly, you'll probably have your refund before you get the response.
• You can call the DOR's Voice Refund Inquiry System (VRIS, pronounced "Virus") at (334) 353-2540. Have a copy of the return handy when you make this call, because you'll need to key in some data from the return.
• Or, you can go to the Where's My Refund link on ADOR's web site. Have a copy of your return handy as you access this form also. You'll need to provide your Social Security Number, the tax form you used, your filing status, and the amount of your 2004 Alabama refund.

This page last updated 5/28/05