After flood of calls Child tax credit program being rushed

The CNMI government has asked the U.S. Internal Revenue Service to do all it can in order to expedite implementation of the federal child tax credit program on the islands following a swamp of inquiries by residents.

Gov. Pedro P. Tenorio and Lt. Gov. Jesus R. Sablan have instructed finance officials to step up preparation for the implementation which they want to take place by December.

Mike S. Sablan, special advisor for finance and budget, said yesterday the government will soon be conducting public information campaign about the program.

“We are even encouraging the private tax practitioners to assist the Revenue and Tax [division] in helping the taxpayers fix their forms,” he told in an interview.

IRS officials announced last week that they are laying the groundwork for the implementation of the special tax credit given to U.S. taxpayers who have three or more dependent children under 17 years old.

Both federal and local officials expect about $10 million payment to about 3,700 families on the islands for both 1998 and 1999 refunds.

Under the program, individuals or couples who have three or more children under the age of 17 are entitled to a tax refund of $400 per child for 1998, and $500 per dependent for 1999 onwards.

The tax credit will be paid to recipients out of funds from the U.S. Treasury although the claims will be filed to the Revenue and Taxation Division of the local Department of Finance for processing, according to officials.

Payment can be made within 45 days from the filing date, they said.

Following the news, several people have called up DOF and the Governor’s Office asking about the program. “Understandably so, because a lot of people are looking forward to this additional cash,” said Mr. Sablan.

“We have not implemented the procedures yet because we are waiting for the IRS on the details of the forms and other processing requirements,” he added.

Because of the numerous inquiries, the administration has issued a statement appealing to the public not to call since filing procedures are expected to be released within the next two weeks.

While none has yet been finalized, Mr. Sablan pointed out the finance department may have to set special hours just for this program, like extending work hours in the evening and on weekends to process forms.

“Tax practitioners have also requested rental space near the Revenue and Tax’s office. It’s going to be a cash windfall for a lot of families here,” he added.