Indiana reports $206 million tax goof

[salvorhardin]

Oh yay. In addition to the misplaced $300 million discovered last December, now we learn that the state overcharged counties $206 million in "local option income tax" revenues.

So basically, in just the past few months, the Indiana Department of Revenue has made errors that are $6 million greater than the recent Mega Millions lottery prize, or to look at this from another perspective, the combined $506 million in errors (that we know about) represent just about 1.8% of Indiana's $28.3 billion state budget. It might just be me, but errors exceeding half a billion dollars seem somewhat excessive.

State budget officials announced Thursday a programming error cost local units of government $206 million in local option income tax revenues in 2011 and so far this year.

...

"It's unfortunate this error occurred," said State Budget Director Adam Horst. "The most important thing that I believe is to restore confidence in that system, provide as much information as possible in as transparent a way as possible…to try to build up that trust and give them the best information available for planning purposes."

It was the second major error discovered in the Department of Revenue in the past six months. In December, Gov. Mitch Daniels announced the state had found $320 million in misplaced corporate tax revenue.

At that time Democrats called for an independent audit of the system but Daniels and GOP legislative leaders refused.

Link: http://www.journalgazette.net/article/20120405/NEWS07/120409761

[One Voice]

1. AND...

Mitch Daniels fled the country (to Israel) right before the story broke!

Another link to story:

http://www.indystar.com/article/20120405/NEWS05/120405018/State-agency-s-mistakes-total-more-than-500M-four-months?odyssey=tab|topnews|text|IndyStar.com


He makes me ill.

[salvorhardin]

3. Me too

It's like having our own Bush clone for Governor.

[salvorhardin]

2. The News-Sentinel has more on this story

A $206 million blunder will cost a top state official his job but represents a $15 million windfall for various governments in Allen County. But that doesn't necessarily mean taxpayers will get a refund – or government employees a raise.

Nick Jordan, Allen County's chief deputy auditor, said the recent discovery of the Indiana Department of Revenue's underpayment to local authorities means Allen County will receive an additional $4.4 million in county option income taxes (COIT) and $2.9 million in county economic development income taxes (CEDIT) for 2011 and about $4.4 million in COIT and $3.7 million in CEDIT for this year. How much each unit of government receives – that includes cities, towns, the county, airport, library and others – must still be determined, Jordan said.

Schools do not receive income taxes and as a result will not be affected by the discovery, which caused Department of Revenue Commissioner John Eckart to announce his resignation at the end of the current tax season.

Link: http://news-sentinel.com/apps/pbcs.dll/article?AID=%2F20120405%2FNEWS%2F120409758

And AP via the Star Tribune has more about Eckart's resignation:

The head of Indiana's taxing authority tendered his resignation this week after it was discovered that $205 million in local income tax revenue hadn't been distributed to counties, the second such oversight in months found to have happened on his watch.

John Eckart, the Department of Revenue's commissioner, will step down at the end of the current tax season after seven years in charge of the agency, state budget director Adam Horst said at a news conference Thursday. He did not specify when, exactly, that would be.

Two other top revenue officials, Chief Information Officer Roy D. Gabriel and Chief Financial Officer Darrel Anderson, also left after the error was discovered, Department of Revenue spokesman Bob Dittmer said.

Link: http://www.startribune.com/nation/146273355.html

[indypaul]

4. "Found" money

I found $10 just last month that I did not know I had by
the simple process of reconciling my checking account.
Has no one in state government ever heard of that procedure?

[BiggJawn]

5. $206 million?

Why, that just about covers what the state has fucked Purdue out of the last 15 years. Yeah, we can use that money...

[salvorhardin]

6. I don't think this or the other $300 million was "accidentally" misplaced

I think it was deliberately misaccounted in order to bolster the case for austerity and union-busting.

[LittleGirl]

7. Heads should roll over this

but I see only one person quit? Really?

[MrYikes]

8. I think maybe Daniels wants to sell this function to IBM

so they can do it right. OH, WAIT.....