DOF begins processing of rebate checks

The Department of Finance has begun preparation for the processing of the first batch of the tax rebates and refunds and will soon announce exact date for the release of checks to taxpayers, according to a statement issued by the department.

“All refund/rebate checks will be processed on a ‘first-in, first-out’ basis as determined upon the filing date of the returns,” the DOF said.

“The department will be announcing the exact date for the release of the first batch… and all subsequent releases, as soon as they become available. All checks will be mailed out and no personal pick up will be allowed,” it added.

The good news followed last week’s assurance by Mike Sablan, special advisor for finance and budget, that taxpayers who filed their returns way before the April 15 filing deadline will receive their rebate checks as early as second week of September.

He disclosed the staff of the Revenue and Tax division have been working overtime to verify and reconcile the returns against what had been reported by the employers.

The government hopes to pay out all its financial obligations to taxpayers by October 15 as stipulated under the Constitution, which states that rebates and refunds must be settled after six months from the filing deadline.

But officials reminded taxpayers who still have outstanding taxes and other charges with the department, such as the Revenue and Taxation as well as Customs Service divisions or the CNMI Treasury, to clear these obligations first.

“(Y)our checks will not be released until you have cleared those charges,” the statement said. “We urge you to visit the affected agencies and resolve any pending matters as soon as possible to avoid any inconvenience to you.”

The government has to cough out between $25 million to $28 million this year to meet its financial obligations to taxpayers covering tax year 1998.

So far, the special rebate trust account set aside to pay the government’s tax obligations has funds between $15 million to $20 million which will be enough to cover payment of the first batch of rebate and refund checks.

“We are working hard to complete the processing of this year’s tax returns, and we thank you for your patience and understanding,” the DOF said.

Gov. Pedro P. Tenorio has had to reassure the public on the ability of the government to meet its commitment to taxpayers as his administration has been delayed in paying rebates and refunds due to the financial difficulties confronting the CNMI over the past two years.

Last year, taxpayers did not receive their rebate money until July due to a shortfall in the rebate trust account. In the past, checks for rebates, refunds and EIC were released in lump sum during the month of May.