Department of Revenue Financial-Compliance Audit for the Two Fiscal Years Ended .. 1986

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ESTABLISH PROCEDURES TO ENSURE INHERITANCE TAX RECEIVABLES ARE PROPERLY COMPUTED AND UPDATED; AND B. AUTOMATE INHERITANCE TAX RETURN PROCESSING.
Income Tax We tested 15 Income Tax receivable balances that were on the department's records at June 30, 1986. For three of the balances tested, either the taxpayer's file, the receivable subsystem, or both had not been properly credited for payments the department received.
Department personnel stated these posting mistakes resulted from human error.
...For example, personnel credited a payment to the wrong taxpayer's account because there were two taxpayers with the same name. Although the taxpayer did not include his social security number with his payment , division personnel could have prevented this error by comparing social security numbers between the taxpayer file and the account receivable subsystem when posting the payment.
Individual accounts on the receivable system and taxpayers' files should accurately reflect the amount owed, so the department can attempt collection for all amounts owed and prevent collection efforts for amounts that have been paid.


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