LANSING, Mich. (Michigan News Source) – It’s almost August, and while many Michiganders have long since spent their state tax refunds on groceries, rent or summer vacations, thousands of others are still asking the same question: “Where’s my money?”
The Michigan Department of Treasury continues to face mounting criticism over delayed tax returns tied to its rollout of a new tax processing system. What was billed as a long-overdue replacement for a 40-year- old computer platform has instead produced months of delays, confusing notices, jammed phone lines and a growing list of frustrated taxpayers.
Months later, still no check.
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Among those frustrated taxpayers is Phil R., who says he’s owed about $1,900 from the state. He told Michigan News Source that he’s called Treasury repeatedly, spent hours trying to get answers and still has no idea when his refund will arrive. That money isn’t earmarked for a vacation or a new television. He’s a senior citizen living on Social Security income and needs it to pay his bills. Instead, he’s been left in limbo while Treasury offers little more than assurances that his return is being reviewed.
What went wrong?
Treasury officials say the delays stem largely from the transition to the new GenTax system, which went live only months before filing season. The department says the upgraded software performs more extensive fraud detection and validation, but returns can also be delayed by missing information, identity verification and other issues unique to individual tax filings.
As of July 28, Treasury says it has processed more than 5.2 million individual income tax returns and issued more than $3.59 billion in refunds since filing season opened on Jan. 26. The department says approximately 145,000 tax returns – representing about 122,000 taxpayers who filed before the April 15 deadline – remain in the processing queue.
Treasury says processing backlog doesn’t equal refund backlog.
Michigan News Source reached out to the Michigan Department of Treasury, which clarified that an earlier figure of 250,000 referred to tax returns still being processed, not refunds awaiting payment. Officials emphasized that not every return in the processing queue will result in a refund. Some taxpayers will owe additional taxes, some returns will require adjustments, and others will receive refunds once processing is complete.
Lawmakers keep pressure on Treasury.
The updated figures differ from claims by some House lawmakers, who have suggested the backlog involves hundreds of thousands of delayed refunds. House lawmakers have grilled Treasury officials over the rocky rollout, questioning why the system was launched so close to tax season and demanding a plan to prevent another repeat performance next year. Treasury officials have acknowledged the rollout was far from smooth but insist improvements are underway.
But for Phil – and thousands of other Michiganders whose returns are still being processed – the explanations don’t help pay their bills.
