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| D.C. withdraws money from hundreds of taxpayers’ bank accounts due to ‘computer error’ | |
| (about 1 hour later) | |
| The District government’s tax office has erroneously withdrawn money from bank accounts of more than 580 taxpayers due to a “computer error,” officials said. | The District government’s tax office has erroneously withdrawn money from bank accounts of more than 580 taxpayers due to a “computer error,” officials said. |
| The Office of Tax and Revenue said Thursday afternoon that it had “reached out” to those affected to inform them of the problem and that the issue was corrected by Thursday morning. | The Office of Tax and Revenue said Thursday afternoon that it had “reached out” to those affected to inform them of the problem and that the issue was corrected by Thursday morning. |
| The error affected a “limited number” of the 360,000 bank accounts on file, the agency said. The problem involved income tax filers, not property taxpayers. | The error affected a “limited number” of the 360,000 bank accounts on file, the agency said. The problem involved income tax filers, not property taxpayers. |
| But officials did not say how much money was withdrawn, whether it has been returned or explain what set off the improper electronic withdrawals for amounts as great as $6,500 in one case. A spokeswoman did not immediately respond to a request for those and other details. | But officials did not say how much money was withdrawn, whether it has been returned or explain what set off the improper electronic withdrawals for amounts as great as $6,500 in one case. A spokeswoman did not immediately respond to a request for those and other details. |
| Bezalel Stern, a D.C. resident, said he realized $6,500 was taken from his bank account on Wednesday morning, hours after his own attempts to withdraw money from two ATMs were declined because his account had been emptied. | Bezalel Stern, a D.C. resident, said he realized $6,500 was taken from his bank account on Wednesday morning, hours after his own attempts to withdraw money from two ATMs were declined because his account had been emptied. |
| It took several calls to his own bank before he found out it was D.C. government that had cleaned out his account — leaving him with an overdraft fee. | It took several calls to his own bank before he found out it was D.C. government that had cleaned out his account — leaving him with an overdraft fee. |
| “The money was basically stolen from me. You expect this from the bad guys,” he said. “You don’t expect this from your government.” | “The money was basically stolen from me. You expect this from the bad guys,” he said. “You don’t expect this from your government.” |
| Stern called the tax office Wednesday morning after tracing the withdrawl to that office through bank records. He said the amount withdrawn matched what he paid D.C. after filing his income taxes for the 2014 tax year. | Stern called the tax office Wednesday morning after tracing the withdrawl to that office through bank records. He said the amount withdrawn matched what he paid D.C. after filing his income taxes for the 2014 tax year. |
| An official at the Office of Tax and Revenue who took Stern’s call Wednesday told him that the error occurred when the office was testing new anti-fraud software, he said. The official told him that the office was using last year’s tax filings during the test but that the “last step” — withdrawing money from filers’ accounts — was not supposed to happen. | An official at the Office of Tax and Revenue who took Stern’s call Wednesday told him that the error occurred when the office was testing new anti-fraud software, he said. The official told him that the office was using last year’s tax filings during the test but that the “last step” — withdrawing money from filers’ accounts — was not supposed to happen. |
| “So, I basically paid my D.C. taxes a second time,” he said. | “So, I basically paid my D.C. taxes a second time,” he said. |
| He said he was told the money would be restored “over the next couple of days.” | He said he was told the money would be restored “over the next couple of days.” |
| By Thursday morning, he said, his account showed the transfer of the money back into his account was “pending.” | By Thursday morning, he said, his account showed the transfer of the money back into his account was “pending.” |
| The Office of Tax and Revenue said it would reimburse those who incurred fees as a result of the error. | The Office of Tax and Revenue said it would reimburse those who incurred fees as a result of the error. |