Audit Finds State Tax Information Not Always Verified, Refund Checks Not Controlled, Sensitive Taxpayer Information Not Protected

The agency that collects most Maryland taxes had lax controls over granting tax credits and refund checks, and in one case issued a $101,000 refund that wasn’t due, state auditors found. The comptroller’s Revenue Administration Division also had computer programming errors and did not adequately protect sensitive taxpayer information, according to an audit report.

Four of the auditor’s findings were problems identified in previous audits.

Responding to the audit findings, Comptroller Peter Franchot said, “We will be able to realize significant improvements in our ability to process these credits in the future due to improvements in technology. The legacy tax processing system did not allow for electronic transmission of supporting documents and schedules,” resulting in a “very labor-intensive process.”
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