Computer error tells state employees they underreported taxes

Friday, January 13th 2006, 8:50 am

By: News On 6

OKLAHOMA CITY (AP) -- State officials say a computer conversion error led to nearly a thousand state employees getting letters from the IRS saying they under-reported their 2004 incomes.

A total of 967 state employees have been told they under-reported their incomes by up to 50 percent.

State Finance deputy director Tony Hutchison says the employees who receive a delinquency notice should call the IRS, but he says they don't owe extra taxes. He says the IRS has been notified of the problem and should be ready to help the state employees.

Hutchison says the mistake was made when the state converted to a new computer system.

About half the affected employees are with the Department of Central Services, the Office of State Finance and the Department of Personnel Management.

Other agencies affected range from the governor's and lieutenant governor's offices to the Boll Weevil Eradication Organization.