State tax refunds taken back, Georgians left with overdraft fees

By Christopher Quinn

The Atlanta Journal-Constitution

The state Department of Revenue deposited 2010 tax refunds into Georgians' accounts then withdrew them, leaving people with strings of bank charges for overdrawn accounts.

Robert Freeman of Valdosta said he noticed his 2010 refund was in his account Sunday, and then it was missing Tuesday.

"It happened to me and my brother-in-law," Freeman said. "Unfortunately, he spent his $500 and now he is running around trying to cover bad checks."

A department spokesman said in a written statement that there was a computer system error in the calculation of refunds. To ensure that correct payments were made, the department took the money back. It has corrected the computer error and will begin reissuing refunds.

The statement did not give the number of Georgians affected by this mishap.

When Freeman called his bank, a spokesman told him it had happened to a number of customers.

Alton Carter of Winder was also a victim of disappearing money.

"I received it Monday, and when I woke up this morning it was reversed," he said.

A note on his bank statement said the state had withdrawn the refund it had just given him.

Carter had paid some bills, and when the Department of Revenue took the money back  it left him in a deficit and facing overdraft fees. He was surprised the state had access to withdraw his money from his account.

"I didn't know that was possible," Carter said.

Carter said he called the department and was offered no explanation of how or why the money was taken back.

"They just said there may have been an error," he said.

And they told him he could appeal his overdraft charges resulting from the withdrawal to the state.

The Department of Revenue will work with banks to try to resolve banking charges made against taxpayers, according to a written statement from the department.

Freeman said explanations offered to him when he called the department were also vague.

At least, Freeman said, he had not spent the money he apparently never had.

MORE INFORMATION

To contact someone at the Georgia Department of Revenue, please call 1-877-423-6711 or visit https://etax.dor.ga.gov/