Department of Taxation and Finance

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NYS Comptroller


Department of Taxation and Finance (Department)
Personal Income Tax
(Issued: 07/06/2018)


The objective of our examination was to determine whether personal income tax refunds approved by the Department of Taxation and Finance (Department) for payment were appropriate and processed in accordance with applicable New York State tax laws and regulations. We examined refunds processed during the calendar year January 1, 2017 through December 31, 2017.


During the period of our examination, the Department processed almost 7.7 million refunds totaling over $9.5 billion. From this population, we returned 10,414 refunds totaling almost $36.7 million to the Department for follow up evaluation and appropriate action.

Key Findings

Reason for Stopping Refunds Number
Taxpayer claimed refundable credits based on incorrect information, such as inaccurate number of dependents or understated income 7,992 $25,039,648
Tax preparer submitted returns with refundable credits based on incorrect and/or false information 928 2,796,792
Taxpayer failed to report correct income 722 4,018,168
Taxpayer used a questionable social security number 424 1,059,098
Taxpayer had questionable itemized deductions 117 328,619
Taxpayer reported incorrect wages and withholding 99 238,128
Other 132 3,250,777
Total Refunds Stopped 10,414 $36,731,230

Key Recommendations

  • Continue working with our Office to identify and implement opportunities to help detect and prevent erroneous refunds.

For a complete copy of Report 2018-BSE8-01, click here.

Division of Contracts and Expenditures
Bernard J. McHugh, Director of State Expenditures

Phone: (518) 474-4868 Email:
Address: Office of the State Comptroller, Division of Contracts and Expenditures
110 State Street, 10th Floor; Albany, NY 12236