State Sends Out Thousands Of Incorrect Tax Letters

By Brian Maass

DENVER (CBS4)- Colorado's Department of Revenue admits it incorrectly sent 7,700 Colorado taxpayers letters last week denying them their TABOR refund or incorrectly computing their tax refund.

"The Department of Revenue apologizes for any inconvenience this may have caused." wrote Dept. of Revenue Communications Director Lynn Granger.

Following an inquiry from the CBS4 investigative team, Granger said taxpayers can claim the TABOR refund until the Oct. 15 extension filing deadline. When a deadline falls on a weekend or holiday, its moved to the next business day. But Granger said the DOR system was not programmed properly to account for this deadline change, leading to some returns being denied the TABOR refund in error.

The state says it discovered the error Oct. 20 and immediately began trying to resolve the mistake. Seven thousand and seven hundred taxpayers were mailed a letter telling them their TABOR refund had been denied.

They were also issued either:
-a refund for less than they expected because it did not include the TABOR refund
-issued a bill for more than they expected because it did not include the TABOR refund
-or were issued a bill instead of a refund or being even with the state because the TABOR refund was denied.

According to Granger, the first group will now get an additional refund for the TABOR amount earned, the second group will have their balance owed adjusted to include a TABOR refund and a new bill will be sent, and the third group will be issued the TABOR refund or have their balance adjusted.

The Department of Revenue is now planning to issue a new letter Oct. 28. The agency says customers can call 303 238-7378 if they have questions or concerns.

CBS4 Investigator Brian Maass has been with the station more than 30 years uncovering waste, fraud and corruption. Follow him on Twitter @Briancbs4.