Tax refunds could arrive late for Kentuckians this year. Here's why, and what to know

LOUISVILLE, Ky. (WDRB) -- A move in Kentucky could leave thousands of people waiting longer for their tax refunds this year.

Kentuckians are being encouraged to file early to avoid a delay. Officials said the Kentucky Department of Revenue will "temporarily pause operations" from late February to mid-March while it launches a new tax portal for business tax filers.

Several Kentuckians have received an email about the transition to the new business tax portal, called MyTaxes, that said the launch will "indirectly affect individual income tax filers."

According to the state, the two-week pause will take place from Feb. 26 through March 14 so it can transition to the new system. Department of Revenue staff will still be answering phone calls from taxpayers during this time, but normal operations won't begin again until March 14.

"We encourage Kentuckians who anticipate a refund to file their taxes early, so they can receive those payments as soon as possible," DOR Commissioner Tom Miller said in a news release Thursday. "Our team is working hard to transition to a new, modern tax system that's easy to navigate and will benefit our citizens and businesses for years to come."

According to the Kentucky Department of Revenue, the new system will offer a more comprehensive view of taxpayer data, ability to view taxpayer correspondence, and increased self-service capabilities.

Officials said Kentuckians can still file their individual income tax returns at any point, starting Jan. 27 through April 15, but refunds will not be processed during that two-week pause.

"If someone files their 2024 state tax return near or during that two-week period, it will take longer than usual for a taxpayer to receive their state refund, if they are eligible for one," Kinsey Woodson, communications director for the state's Finance and Administration Cabinet, said, in part, in a statement.

Chuck Bauer, a retired certified public accountant (CPA), said he quickly questioned "why now" when he got the email from the state about the move to a new system.

"It upset me personally to see the revenue cabinet do something like this right in the middle of the filing season," Bauer said.

That question is something official had not responded to as of Friday afternoon.

"There's a lot of people that look for those refunds that can't afford to wait for (them), so at least they're giving them a warning—file now or let the tax filer beware, I guess you could say," said Bauer.

For information from the Department of Revenue for business tax filers and individual income tax filers, click here.

Tax experts said it's always a good idea to file early and have your documents prepared. According to H&R Block Program Manager Manny Dominguez, several states have upgraded their platforms in the last five years.

"We've seen it all different ways," Dominguez said. "States specifically could speak to why they do things at certain times."

But Kentuckians like Bauer still have concerns.

"If it doesn't go as planned, we all know that the potential is there for some major screwup," he said.

Woodson said Kentuckians' federal tax returns will not be impacted by the pause.

The deadline to file 2024 returns is Tuesday, April 15.

To learn more about MyTaxes and the state's transition to the portal, click here.

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Tax refunds could arrive late for Kentuckians this year. Here's why, and what to know