LANSING, Mich. (WXYZ) — For months, thousands of Michiganders have been left asking, 'Where's my state tax refund?'
Watch Darren Cunningham's video report:
Today, state treasury officials faced intense questioning from lawmakers in Lansing over a massive backlog that has left taxpayers in limbo.
Filing taxes is stressful enough, but for Dearborn Heights resident Michael Drace, the real headache began after he hit submit. He filed his return back on February 14th. Four months later, his pockets are still empty.
“I’d like to have the money now because I have to pay my city property taxes next month," he told 7 News Detroit. Drace added, “I keep taking the money out of the savings.”
With no answers from the state treasury's automated systems, Drace resorted to calling his state representative just to get a status update.
“Their office said there is a problem with the state. They’d look into it," he recalled.
Further east in Warren, Diane Materna is dealing with the exact same waiting game. She filed her taxes on March 4th.
“My bank account is a better place for it than the state of Michigan’s bank account, and at this point, I’m gonna say they owe me some interest on my money," she told 7 News Detroit. “Gas prices are astronomical, food prices are crazy, we all have to upkeep our home, all these bills, they don’t stop so, and everybody expects to get paid. So, we need our money.”
Frustrated taxpayers aren't the only ones demanding accountability. Tuesday, those exact frustrations took center stage in Lansing. The House Oversight Committee hauled Treasury leaders into a hearing to explain the widespread delays.
According to treasury officials, the logjam stems from the treasury transitioning away from a 40-year-old legacy computer system to a modernized platform. While the state released data showing that 95% of individual income tax returns have been successfully processed, amounting to just over 5 million returns, the remaining 5% represents hundreds of thousands of citizens left completely in the dark.
Deputy Treasurer Kavita Kale testified, “We have heard your concerns regarding delayed refunds, difficulty reaching the department, and the resulting strain on your offices and your constituents.”
Treasury officials maintain that returns experiencing delays often involve complex schedules, required identity verification, or filing discrepancies, but for people like Drace and Materna, the lack of a clear communication channel is what hurts the most.
He said, "I think they should notify people why it’s taking so long. What's the reason it is taking so long, or at least be able to talk to someone?”
State officials said a new phone system will be in place next month, and they promise they are working through the remaining backlog as fast as possible, but offer no concrete timeline for when the remaining checks will land in mailboxes.
