Good Question: How Are Tax Returns Processed In Minnesota?
MINNEAPOLIS (WCCO) -- This year, the state of Minnesota expects to process 2.7 million tax returns. Almost two-thirds of Minnesotans have already filed, and the state says it's issued one million refunds so far.
So, how does the state process our tax returns?
"We have a well-oiled machine here," says Terri Steenblock, assistant commissioner for individual income taxes with the Minnesota Department of Revenue.
Thousands of returns come in each day this time of year. Within the next few weeks, the Department of Revenue will have people working 24 hours a day. Currently, 250 people work in the division that processes the returns. At the IRS, it takes 17,000 employees.
Eighty-five percent of Minnesotans e-file. According to the IRS, it takes 21 cents to process an e-file federal return versus $3.83 to process a paper return.
Steenblock says when people file paper returns, someone must open the mail, take of the staples, flatten the papers and send them through the sorting machine. The returns are then scanned before going through a review.
"We use both technology and people to do those reviews," Steenblock says. "We don't share the review criteria we're using because we don't want criminals to get ahold of that and use that to defraud the state or taxpayers."
She says identity theft becomes more of a problem every year and the review process helps to better ensure the right taxpayers are getting the right refunds.
"They would be looking to make sure the return is properly filled out, looking for math errors, for example, just some of those basic things," she says.
The state Department of Revenue doesn't promise timeframes on when people will receive their refunds, but the IRS says 90 percent of e-filers receive their refund within three weeks. For paper filers, it can take closer to four to eight weeks.
Both the state and the IRS have websites where people can check the status of their refunds.