ALBANY, N.Y. (AP) _ A New York state contractor hired to handle paper tax returns cost the state millions in overtime and made mistakes in nearly one quarter of the returns it processed last year.
The criticisms are outlined in an audit released Wednesday by Comptroller Thomas DiNapoli.
The audit estimates that the contractor introduced errors into 22 percent of the 2 million returns it handled. The contractor was also late in processing 90 percent of the returns.
The three-year, $16 million contract is held by New York State Industries for the Disabled, who partnered with a business called SourceHOV to process the returns
The state's tax department racked up $6 million in overtime to correct the problems.
The department says it improved its oversight of the contractor to prevent similar problems this year.