Oklahoma E-file, or Lack There Of

Another missing Oklahoma tax return. Specifically, a non-resident (511-NR) tax return. The Federal and Kansas returns were e-filed on January 24th but the Oklahoma return had to be mailed. That is because the Oklahoma Tax Commission has never gotten around to developing e-file for non-resident returns. And from the information I have heard today, it doesn't look like they are planning to add this service in the next few years. Add this to unbelievably slow processing of paper returns and their ability to lose returns, you can imaging my frustration today.

I came into a client message today. After 4 and 1/2 months, their OK refund was still missing. But I couldn't check it online like I can with the IRS or most other states because OK doesn't offer it. After going through their automated phone system and discovered they did not have a record of the return, I tried for a live person. But I was hung up on because there were too many other calls in queue. Finally, getting a live person, I discovered they didn't have the return and I was going to have to send another one it. This usually happens at least once a year. One year I submitted a client's OK return 2 times by mail and another 2 times by fax. It took a year to get the refund. In fact during the end of tax season, I get more calls for missing Oklahoma refunds than for missing Kansas refunds.

This would not happen if Oklahoma would develop e-filing for non-resident returns. They wouldn't have to worry about data entry. It would be done and the computer could then process the return. (Mailed in returns from April are just now getting processed). We are not talking about a complex corporate or partnership returns. We are discussing an individual return similar to a return they already accept. Yes, there is specialized programming but the basics are there. To make the situation even more bizarre, Oklahoma has an e-file mandate for resident returns. If a tax professional prepares more than 50 OK tax returns in a year, they are required to e-file them unless the client refused. I want to e-file all my Oklahoma returns and can't, but the OTC is requiring e-filing for resident returns.

I am sure this is not a big deal to tax professionals in the center of OK, but for those of us working near the border, it is a major problem. Almost 11% of all the returns I filed so far this year had OK 511NRs and that percentage is growing every year. With the several casinos just over the state line, more Kansas residents are working or winning in Oklahoma and this means they are filing OK tax returns. Despite the money they are adding to the OK economy, they are being treated as second class because they don't vote. Oklahoma gets their money but doesn't provide them any services, even when it comes to taxes. It seems to me that the OTC needs to funnel some of the revenue from non-resident tax returns into improving the e-file service for those taxpayers providing the money.

Comments

[melanie bloodgood]

I am having the same trouble. This is crooked -- a con game. The state of Oklahoma needs to be sued.