Tax agencies love computerized notices. The computer does the work, finds probable tax scofflaws, and the notices are mailed in an automated fashion. This saves the agencies money. Assuming the tax debt is real, it’s a good bargain for everyone.
However, there are problems when matching programs are used based on people’s names. It appears that the Franchise Tax Board is doing just that. This story details that a retiree living in Omaha, Nebraska received a notice from the FTB about a $200 tax debt from 1999. The problem is that Wally Grant, the man who received the notice, hadn’t stepped foot in California since 1943.
Sure, the FTB rescinded the debt and the past due notice. But why did the FTB send out a notice like this in the first place? The notice refers to someone with the same name who lived in Pasadena. I have to assume (like the television station that covered this story) that the FTB used a matching program of names. When the computer found a Wally Grant, it sent out the notice. I doubt a human looked at the notice until the telephone rang at the FTB.
Of course, it’s possible that I’m wrong. It could be that the FTB matched social security numbers rather than names. If that were the case the social security number of Mr. Grant of Omaha could have been used by anyone, causing the problem. However, given the reference in the notice this seems unlikely.
In any case I’m wondering what’s going on. The FTB refused to comment to the Omaha television station. I’d love to hear from someone at the FTB (or the Board of Equalization) as to what’s going on. I’m all for the FTB going after tax scofflaws but this appears to be a case of big brother and it disturbs me deeply.