1991 Handbook Carries Wrong Set of Tax Tables : IRS: Faulty schedule in Spanish-language publication could result in overpayments to Uncle Sam of as much as $373.
On the eve of the tax deadline, the Internal Revenue Service discovered a mistake in one of its Spanish-language handbooks that could cause taxpayers to overpay Uncle Sam by up to $373.
Inadvertently, the 1990 tax tables were put into the handbook instead of the 1991 tables, said IRS spokesman Don Roberts in Washington. The 1991 taxes are lower.
About 50,000 copies of the handbook were distributed nationwide, Roberts said. IRS officials added, however, that taxpayers who used the handbook, titled Publication 579S, should not worry; any overpayment will be caught by the agency’s computers and refunded to them.
Ann Logan, spokeswoman at the IRS district office in Laguna Niguel, which serves most of Southern California, said the agency was alerted to the mistake only Tuesday.
“We got a telephone call from a taxpayer who wanted to know why there was a discrepancy” between the tax tables in the English handbook and those in the Spanish one, she said.
Those affected by the mistake are single people with taxable income of at least $19,450, married couples filing jointly with taxable income of at least $32,450 and married people filing separately with income of at least $16,250. The faulty tax schedule only tracks incomes up to $50,000.
Generally, the higher the taxable income, the greater the potential overpayment if the faulty tax table is followed. For instance, married people filing separately with income of $16,250 would overpay the federal government by only $7. But a couple filing separately with income of $49,950 would overpay by $373.
Most commonly the overpayment would range between $100 and $200, the IRS said.
IRS officials said they have no way of knowing how many people used the outdated tables. They said the Spanish handbooks are not automatically sent to taxpayers but must be ordered or picked up at local IRS counters.
Now that the IRS is aware of the problem, Logan said, it has passed on the information to its workers who counsel the public on the telephone or at its walk-in offices.
“This publication does not have a wide distribution. It is not heavily requested,” said Roberts, noting that the 50,000 sent out represent only about half of the number printed. “It is considered a small number when you figure we have 114 million people filing returns.”
Several tax services that deal with Spanish-speaking clients said they were unaffected by the mistake because their computers use the correct version of the IRS tax tables.
Frank Palmer, owner of Palmer Income Tax Service in Santa Ana, whose clientele is about 95% Spanish speaking, said he doubts that many individuals would use the IRS handbook to figure their taxes.
“I think it would be rare for a person that does not speak any English to do their own taxes at home,” he said.
AN IRS MISTAKE
* Did You Pay Too Much Tax?
Spanish speakers may have paid too much federal income tax. The IRS-furnished Spanish-language instruction handbook listed 1990 tax rates instead of lower 1991 rates.
* Who Was Overcharged?
Anyone using tax tables in Publicacion 579S--the Spanish instructions to filing federal tax returns. Errors began on Page 39. All income levels from $16,250 to $49,999 were affected.
* What to Do
The IRS says its computers will automatically figure the correct tax rate. Those expecting a refund will get a higher refund. Those who paid the IRS will be issued a check for the amount overcharged.
* Contacting the IRS
Those with more questions can reach the IRS at 1 (800) 829-1040.
* How Much Was Overcharged?
Anywhere from just a few dollars to nearly $400, depending on income level and filing status. Some examples:
Married Married Taxable Filing Filing Head of Income Single Jointly Separately Household $16,250 Tax Listed $2,441 $2,441 $2,448 $2,441 to $16,299 Actual Tax $2,441 $2,441 $2,441 $2,441 Overcharged $0 $0 $7 $0 $20,000 Tax Listed $3,079 $3,004 $3,498 $3,004 to $20,049 Actual Tax $3,004 $3,004 $3,397 $3,004 Overcharged $75 $0 $101 $0 $25,000 Tax Listed $4,479 $3,754 $4,898 $3,754 to $25,049 Actual Tax $4,362 $3,754 $4,797 $3,754 Overcharged $117 $0 $101 $0 $30,000 Tax Listed $5,879 $4,504 $6,298 $5,021 to $30,049 Actual Tax $5,762 $4,504 $6,197 $4,858 Overcharged $117 $0 $101 $163 $35,000 Tax Listed $7,279 $5,589 $7,698 $6,421 to $35,049 Actual Tax $7,162 $5,387 $7,597 $6,258 Overcharged $117 $202 $101 $163 $40,000 Tax Listed $8,679 $6,989 $9,139 $7,821 to $40,049 Actual Tax $8,562 $6,787 $8,997 $7,658 Overcharged $117 $202 $142 $163 $45,000 Tax Listed $10,079 $8,389 $10,789 $9,221 to $45,049 Actual Tax $9,962 $8,187 $10,516 $9,058 Overcharged $117 $202 $273 $163 $49,950 Tax Listed $11,611 $9,775 $12,423 $10,607 to $49,999 Actual Tax $11,368 $9,573 $12,050 $10,444 Overcharged $243 $202 $373 $163
Source: Internal Revenue Service
Researched by: DANNY SULLIVAN and CHERYL BROWNSTEIN-SANTIAGO / Los Angeles Times
