Some Kansas taxpayers who made their 1998 payment on time got notices that they owe penalties and interest.

The glitch affects payments made on April 15, 1999, for the 1998 tax year. Computers at the Kansas Department of Revenue apparently labeled some of the payments as late, according to department spokesman Scott Holeman.

"There was a hiccup there," Holeman said.

The computer was programmed to read 104 days after the start of the year, Holeman said. April 15, 1998, was the 105th day.

Holeman thought a batch of 3,000 penalty and interest letters were sent for the 1998 tax year, but he didn't know how many were triggered by the April 15 snafu. About 1.5 million Kansas income tax returns are filed each year.

Guy Gann, owner of Hutchinson Income Tax and Financial Services, says he asked the revenue department a month ago about the letters. The e-mail he got in response said it was a "system problem," according to a copy of the e-mail that Gann showed The Hutchinson News.

"We are billing taxpayers for payments made on April 15, 1999," the revenue department employee wrote. "Our system is not recognizing that as timely. I have advised management, but they have chosen to not address it."

Gann blacked out the employee's name before showing the e-mail to the newspaper.

Holeman said the matter has been addressed.

Gann said about 30 of his clients got letters over the past year alleging late payments, even though their taxes were paid on time. He says he handles about 450 tax returns per year.

The 1998 tax year was "out-of-this-world" horrible because of computer changes and problems at the revenue department, said Jo Wiebe, co-owner of the H&R Block franchise in Hutchinson.

Dave Tarter, owner of H&R Block franchises in Dodge City, Garden City and Larned, recommends that taxpayers keep records "forever."

Kansas City Star

-- Anonymous, June 05, 2001