A Des Register investigation shows the state may have been slow issuing refunds because it didn’t have the money to pay people at the same rate as previous years.
In April, the state was about $300 million behind the pace it was paying out tax refunds in the last two years. According to the investigation, Iowa’s “checkbook” had just $72 million on April 15. That’s the lowest since the Great Recession.
Previously, the state said increased fraud protection measures were delaying tax returns. But experts now say that may have been an early and partial explanation for the delay.