Major glitch cheats hundreds of RI tax filers

The Rhode Island State House.

PROVIDENCE, R.I. (WPRI) — A major glitch at the Rhode Island Division of Taxation is leaving the state responsible for refunding thousands of dollars.

The division of taxation is scrambling to fix a major mistake that took owed tax money out of some filers’ accounts — twice!

Officials say the mistake occurred when roughly 260 taxpayers, who electrically filed their Rhode Island personal income tax returns, paid their balance through direct debit from their bank account. The state then went back and withdrew the same amount — a second time.

According to RI Tax Administrator David Sullivan, the system crashed after being overloaded with last minute filings.

The state is now in the process of issuing refunds — but affected taxpayers will have to file a claim for reimbursement for fees they were hit with from their banks. The state is now responsible for paying back taxpayers for overdraft fees, bounces check fees, and other charges.

“We will reimburse you for any expenses you may have related to this,” Sullivan said.

The total amount that taxpayers had to pay was $450,000, while one taxpayer owed $290,000 — all of which was debited twice.

For more information on reimbursements, click here.

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