THE government of Guam is against a proposed permanent injunction that requires them to pay out tax refunds within six months of filing a claim for return.
The opposition, filed Wednesday in District Court, stated that the time period is not reasonable and does not address the millions in tax refunds still owed for 2011 and years prior, as well as the projected shortfall for the payment of 2012 tax year returns.
According to Assistant Attorney General Kenneth Orcutt, $30 to $40 million is still owed for tax refunds already filed, including estimated unfiled returns. Additionally, the government projected a $105 million shortfall for 2012 tax refunds.
“Under the current financial situation of the government of Guam, Guam requires more than six months to pay these refunds,” Orcutt wrote.
He stated that it would be illogical for the court to grant the taxpayers' proposed injunction when the government undeniably cannot comply with the payment deadlines proposed.
“It makes no sense for this court to grant injunctive relief with which Guam cannot comply and then have Guam immediately subjected to contempt proceedings,” he said.
Orcutt also stated that even if Guam were caught up on tax refund payments, the government still disagrees that the proposed six-month time period is reasonable.
He continued to argue that neither the Organic Act nor the Internal Revenue Code (IRC) obligates GovGuam to pay tax refunds on time. Instead, the government follows the IRC, which has no specific deadline but requires the Department of Revenue and Taxation to pay the taxpayer interest on their refund amount if the refund is not made within 45 days after the claim for a refund is made.
A federal judge last month ruled in favor of taxpayers who sued the government for its failure to pay out tax refunds in a timely matter. Both parties were given a deadline by the court to submit a proposed injunction that would impose change in the government's practice of paying tax refunds late as well as expediting select refunds.
In response, the government has asked to extend the deadline, telling the court it needs time “to develop a realistic plan allowing it to transition to paying income tax refunds promptly and still meet its fundamental obligation to provide essential government services.”
Comments
The Legislature passed several laws that Rev&Tax and DOA must set aside collected monies for the refunds. Where are they?
Guamanian Calvo, DOA & this administration needs to be investigated. The people of Guam deserve to know what they are doing with all the monies.
He used up his borrowing authority to pay refunds which were amassed by his relatives Joe Ada, Paul Calvo, Frank Blas & Kaleo Moylan for the $1000.00 rebates & $5440 election scams, now he wants the courts to give him time for what?
I honestly believe the Feds need to intercede and take-over the processing & delivery of Income taxes. It is evident that we cannot govern ourselves because of all the crooks.
Then we have Congressional Candidate Frank Blas, Jr. saying Guam needs to de-link from the IRS.
Please Write-In CHAMORI for Guam Washington Delegate and End the cycle of ABUSE. His PRO BONO bid means $15,000.00 a month to GMH for medicines & supplies.
Campaign Slogan: "If you do not VOTE for me....YOU LOSE."
Thanks,
In this case, the US Gov't should suspend the right of Guam to keep Federal taxes collected; have everyone file electronically to the IRS, and then the IRS provide a one time payment of all tax collections back to Gov Guam. That way, everyone will get their money (in less than 6 months) and Gov Guam will be forced to live within their means.
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