‘Stimulus’ hopefuls rush to correct deficiencies

The long lines are back at the Division of Revenue and Taxation, as taxpayers come to file their income tax returns and correct deficiencies that prevent them from getting their “economic stimulus” payments.

The U.S. Department of Treasury allocated roughly $16.1 million in “economic stimulus” payments for taxpayers in the Northern Marianas. Some 11,000 checks, about half of those who have filed their 2007 income tax returns, reached individuals last weekend.

Finance Secretary Eloy S. Inos has said some 12,000 of the filings had deficiencies.

Erlinda Flores, for example, said she got a letter from The Division of Revenue and Taxation saying that another taxpayer is using her Social Security number. She was told to present her Social Security documents for verification.

Officials told Anna Liza Padernal, a foreign worker, to prove her residency in the Commonwealth by presenting her entry permit and a copy of her passport showing the date of her first entry in the CNMI.

But for some foreign workers who are in the same situation as Padernal, compliance is not so easy. Although they are working legally in the Commonwealth, the Department of Labor had yet to issue their entry permits.

Revenue and Taxation has reportedly refused to honor other documents showing the permit is being processed, and has told the workers their rebate checks may not be released until their entry permit is out.

The Saipan Tribune went to see Revenue and Taxation director Estrellita Ada, but was referred by her staff to Secretary Inos, who did not immediately respond to a request for comment.

Irene Tantiado, president of the Coalition of United Workers, said that guest workers had called the problem to her group’s attention.

“It just seems unfair,” said Tantiado. “Other guest workers got their checks without meeting this requirement. Plus, we all know how long it takes for Labor to process entry permits.”

Tantiado called on the Department of Finance to explain what prompted the requirement. She argued that a taxpayer’s Social Security number should suffice.

Meanwhile, some taxpayers are just now filing their income tax returns in the hope of receiving the windfall from the U.S. government.

The federal rebates range up to $600 for an individual and $1,200 for a couple. Families with children will get $300 per child. The law guarantees workers who earned about $3,000 in 2007 at least a $300 tax rebate.

The rebates would phase out gradually for single taxpayers whose adjusted gross incomes exceed $75,000 and for couples with incomes over $150,000.

The rebates were the centerpiece of the U.S. government’s $168 billion economic stimulus package enacted in February and are designed to boost consumer spending and stir the sluggish economy.