Computer ‘start up' will delay tax refunds this year

Press, 2 April 1980, Page 3

Computer ‘start up' will delay tax refunds this year

A new computer process-i mg system for IRS income tax returns will delay tax; refunds this year but will ■ also give a closer check on : false returns, according to the Commissioner of Inland Revenue (Mr R. Phillips). S', Tax refunds normally made in May and. June might not arrive as quickly as last year, but the • delay would be marginal, he said. The Inland : Revenue Department would still expect to get refunds out about six ' weeks after the return was received. ' “The reason may sound strange, but it is related to the ‘start up’ action in an improved system of process- ? ing salary and wage earners’ returns,” Mr Phillips said. In the past, ,the depart- , ment had only a partial computer : processing of tax packs, return policing, refund cheques, employer and employee verification, and some statistical information. This year the department made abig step -forward with the IRS return;processing, and would have comput-

er calculation and production of assessments, debits as well as refund cheques, and a full accounting systerh for these, Mr Phillips said. He asked that taxpayers refrained from telephoning the;office asking about progress 6. with -j their • refund While his staff answered the telephone they could not process refunds. Taxpayers could also help in other respects to improve their own prospects of quick refund by < returning correctly completed forms w.ith I.R.D. numbers shown on all certificates and gaps in their employment explained, he said.

The assistant District Commissioner of Inland Revenue (Mr A. J. Delore) said that salary and wage earner returns would be more closely controlled through the extended use of computers.

Mr Delore said there were about 30. prosecutions for false' returns in the last financial year, which was- a “considerable increase” bn previous years. The penalties for false returns could be up to SlOO, depending, on the extent of the return furnished, he said. All payments of the provisional tax and tax returns due on; March 7 had been cleared.