Contractor Hired To Process NY State Tax Returns Made Mistakes & Cost Millions

A recent review of New York State Industries For The Disabled–the contractor hired by New York State to process mail-in tax returns–revealed a tremendous amount of mistakes and excessive overtime that cost taxpayers Millions of dollars:

The review found that the contractor introduced errors into an estimated 22 percent of the more than 2 million paper returns it handled in 2013. In addition, the audit found the contractor was slow to process more than 1.8 million returns — or more than 90 percent of the total. 

The state’s Department of Tax and Finance racked up $6 million in overtime to correct the problems and delays. 

State Comptroller Thomas DiNapoli, whose office conducted the audit, said tax officials should have done more to oversee its contractor. He’s recommending that the state reduce its payments to the contractor, and notes that the tax department has already taken steps to prevent similar problems this year.

Source: Newsday