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Sunday 14 May 2000 Title: Computer Glitch Hits Tax Returns

Source: Electronic Telegraph

By Paul Farrow

THE Inland Revenue's computers have suffered a massive breakdown which will keep them out of action until the middle of next month. This has sparked fears of a massive pile-up of tax returns affecting thousands of people. Technical glitches with the Revenue's recently installed software means that it is unable to process 1999-00 tax returns and accountants fear that there could be a big backlog if the problem is not sorted quickly.

Revenue offices will soon be flooded with returns from taxpayers rushing to get their returns in by September 30. That is the deadline for people wanting the Revenue to calculate the tax they owe. One member of staff at the Liverpool tax office said: "We are seeing the piles grow every day and are awaiting instructions as to when we can start processing them."

The software failure coincides with the Revenue's battle to get its self-assessment internet service operational. Paul Falvey a tax partner at Grant Thornton said: "It will put the Revenue under pressure and it must create a knock-on affect."

Bob Rothenberg a senior partner at Blick Rothenberg said: "Those expecting repayments could suffer if the delay goes on too long. Returns will build up over the coming months and this could put the Revenue under pressure. Are they going to be able too process all the September 30 returns by the January 31 deadline when people will need to know what to pay?"

The Inland Revenue is playing down speculation of a crisis and says it hopes to start processing returns by mid-June. But several tax offices across the UK admit that they are already stockpiling last year's tax returns and are waiting to hear when the software developed by US computer giant EDS is working.

Alex McHaines, a Revenue spokesperson, said: "We have a problem with our processing because of technical changes to the software. We only get a small number of returns at this time of year. There are procedures in place for urgent repayment cases."

The Revenue believes that 300,000 people will look to use the internet for self-assessment tax returns and is offering a #10 discount to those using the service.

http://www.telegraph.co.uk/et?ac=000579381554028&rtmo=fqYDrDVs&atmo=99999999&pg=/et/00/5/14/cnir14.html

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-- (Dee360Degree@aol.com), May 14, 2000

Answers

You hit the biggest story of the day here, Dee. This is dead serous stuff, and might me a reflection of what could happen to our IRS.

-- Uncle Fred (dogboy45@bigfoot.com), May 15, 2000.

I've heard that the British system is patterened much after IRS. If this be the case, look out.

-- Billiver (billiver@aol.com), May 15, 2000.

It will be interesting to see if the IRS pops any similar problems. I will keep my eyes open and keep LQQKing for any stories.

-- (Dee360Degree@aol.com), May 15, 2000.