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Wage Verification Glitch Impacts Some California Taxpayers

Sacramento, CA — It is a glitch that could be good news for some California taxpayers and bad news for others.

The Franchise Tax Board that processes tax returns for the state reported on its website on Tuesday that it had issued 23,500 refunds without verifying whether people had entered accurate wage information. Beginning Monday those taxpayers will find out if they will pay more to the government or if a bigger refund check is on the way. It is more likely however, according to a board spokesperson, that most people in that group will see no changes to their returns.

A computer glitch in March that occurred over three days (March 8-11th) and has since been fixed, allowed the returns to be sent out before the state could verify whether people had reported their withholdings correctly. The board spokesperson relays that the error does not reveal other vulnerabilities in the state’s system as it only returns filed during those days were affected.