The Missouri Department of Revenue has paid out more than $363,000 in interest fees to more than 145,000 Missourians who received a tax refund after the 45-day deadline prescribed by state law.
About 23,000 returns are still undergoing manual review by the department, and 1.7 million refunds have been issued, totaling $854 million. Department Spokeswoman Michelle Gleba said the outstanding refunds will be issued as quickly as possible.
The 45-day timeline was shortened from 90 days in 2015 after complaints the department took too long to issue refunds. Gleba said priorities were adjusted and resources are being shared from other areas to manage the shortened time frame. The department did not receive any additional staff.
Refunds are scheduled by the Budget and Planning Division at the Office of Administration based on the state's daily cash flow.
"The Office of Administration monitors general revenue cash flow and ending balance on a daily basis to ensure all payments from the state treasury are made as quickly as possible, while maintaining a balanced budget," OA spokeswoman Ryan Burns told the News Tribune in an email.
The department must also take time to check for fraudulent returns. Gleba said more than 4,000 returns have been identified as fraudulent, saving the state about $4.1 million in refunds.
State Auditor Nicole Galloway is auditing the department and has criticized it several times for not issuing refunds in a timely manner. She subpoenaed documents in May and had received calls from more than 1,000 Missourians who said they were still waiting to receive their refund.
Gena Terlizzi, spokeswoman for Galloway's office, said the audit is expected to be completed by October.