Department of Taxation and Finance

Corporation Tax Refund Processing

Before State taxes can be refunded to corporations, the Office of the State Comptroller must approve the payments. During the year ended March 31, 1996, we prevented the payment of nearly $2.8 million in incorrect tax refunds. Our actions also prevented an additional $274,000 in incorrect tax refunds; these refunds were identified by us as possibly incorrect in prior years and were determined to be incorrect by the Department during the year ended March 31, 1996. We note that the error rate for the refunds we audited (4.75 percent) was the lowest error rate in the last seven years. 96-D-25