Guam Government Prepares Next Round Of Tax Refunds

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Next round expected to cover over 8,000 claims

By Dance Aoki

HAGÅTÑA, Guam (Pacific Daily News, June 28, 2013) – The next round of tax refunds for many of Guam's residents are scheduled for delivery to the post office on Monday.

Gov. Eddie Calvo announced the next batch of tax refunds, worth $22 million, will be mailed out to Status-A filers, or those who filed error-free refund claims.

First, the checks need to be printed by the Department of Revenue and Taxation and then processed by the Department of Administration.

Tony Blaz, Department of Administration deputy director, said the checks were being printed last night and will be prepped today.

Typically, once the checks are prepped, they're sent to the Post Office, which needs about a day to distribute them.

This round of tax refunds will cover 8,212 claims filed on or before March 10, according to press releases from the governor's office.

GovGuam owes between $105 million to $120 million in tax refunds a year, court filings show.

Once this release goes through, about $92 million in tax refunds will have been paid out since the start of the fiscal year on Oct. 1, 2012, according to the release.

"We made the fiscal well-being of this island a top priority," the governor stated in the press release. "The GovGuam family has worked and sacrificed hard to get to where we are today, and next week we'll be releasing more tax refunds."

The government of Guam must pay tax refunds on time in light of a class action lawsuit filed on behalf of taxpayers in 2011, according to Pacific Daily News files.

The court issued the order after what it called a pattern -- dating back more than 20 years -- of failure to timely pay tax refunds, files state. The current and previous governors had to borrow from the bond market to keep the tax refund debt, which reached more than $300 million several years ago, from growing.

Delayed refunds

There are other tax returns that are eligible for refunds that were filed in January, February, March and April, but were submitted with errors and will not be eligible for a refund until the errors are fixed, the release states.

Rev and Tax officials have encouraged tax filers to ensure their tax returns are filled out appropriately, or else face the possible delay, which could have an effect on refunds.

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