State Senator Mary Lazich (R-New Berlin) represents parts of four counties: Milwaukee, Waukesha, Racine, and Walworth. Her Senate District 28 includes New Berlin, Franklin, Greendale, Hales Corners, Muskego, Waterford, Big Bend, the town of Vernon and parts of Greenfield, East Troy, and Mukwonago. Senator Lazich has been in the Legislature for more than a decade. She considers herself a tireless crusader for lower taxes, reduced spending and smaller government.
Imagine getting a letter from the state Department of Revenue (DOR) declaring that you overpaid your taxes and you receive a check for $3,000.There are more details in today’s Milwaukee Journal/Sentinel. You can read the article here.
Four months later, you get a letter from the Department of Revenue that you underpaid, and now owe the state thousands of dollars plus interest.
You pay the original refund, but not the interest because a Department employee tells you that you do not have to.
A few weeks later, another letter arrives, saying you owe interest and the state is going to charge a collection fee.
It happened to a Waukesha resident who contacted me and questioned why he had to pay for the Department erroneously mailing him a refund check.
The story has a happy ending. I looked into the matter and discovered the Department mailed incorrect tax refunds due to a computer problem. The Waukesha man and many other taxpayers with the same predicament, a total of 199, no longer have to pay interest because of the Department’s mistakes.
I have drafted legislation prohibiting the DOR from charging interest to taxpayers for DOR mistakes. The legislation will be introduced soon.