Audit finds firm mishandled thousands of NY tax returns - Fox 2 News Headlines

Audit finds firm mishandled thousands of NY tax returns

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New York State News New York State News

ALBANY, N.Y. (AP) - A New York state contractor hired to handle paper tax returns cost the state millions in overtime and made mistakes in nearly one quarter of the returns it processed last year.

The criticisms are outlined in an audit released Wednesday by Comptroller Thomas DiNapoli.

The audit estimates that the contractor introduced errors into 22 percent of the 2 million returns it handled. The contractor was also late in processing 90 percent of the returns.

The three-year, $16 million contract is held by New York State Industries for the Disabled, who partnered with a business called SourceHOV to process the returns

The state's tax department racked up $6 million in overtime to correct the problems.

The department says it improved its oversight of the contractor to prevent similar problems this year.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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