California Annouced IOU's Instead of Refund Check!

The State of California has announced a potential change in their procedures for issuing refund checks for 2009. Starting on February 1, 2009, they are contemplating IOU's instead of checks for state income tax refunds. To avoid receiving an IOU instead of a refund check, you should consider whether your final estimated tax payment scheduled to be paid January 15, 2009 is needed. If you can reduce or eliminate that payment and still cover what you believe your liability for 2008 will be, then you should. There is no way to predict what will happen to these proposed IOU's but they won't be treated like cash and could lead to a significant delay in your use of these funds.

Please call your RINA representative if you have questions about what your liability for 2008 may be.