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Wednesday, January 26, 2011 - 10:41am

Tax Glitch Wreaks Havoc

The state is blaming a computer glitch for overpaying hundreds of thousands of dollars in tax returns. Thousands of bank accounts were affected after the department of revenue tried to fix the problem.

Some taxpayers are facing over draft fees after the revenue department electronically deposited money into their accounts last Thursday and then issued a stop payment hours later when it realized it overpaid.

Revenue Commissioner Doug Macguinitie says they didn’t realize the money had reached people’s bank accounts until Monday, and apologized to the 30,000 people affected.

We have contacted all our bank relationships we’ve made them aware of the situation. We are working as quickly as we can. We’re confident at the end of the day we’ll be able to put people back in the position they should have been in which means they won’t be recurring these fees at no cost to anybody

Of the 12 million dollars given out about 600,000 dollars was in error. Macguinitie says they’re still assessing the problem to make sure it doesn’t happen again.