KCRG interviews Terry, Lockridge & Dunn accountant regarding a recent social security error.
By: Josh Hinkle, Anchor/Reporter
KCRG
Story Created: Feb 10, 2008
CEDAR RAPIDS - Lori Hannen is a certified public accountant in Cedar Rapids. She handles nearly 400 returns every tax season. But it wasn't until she got to her own mother-in-law's that she caught this particular problem.
Hannen says, "It was just a computer error. It was nobody's fault. We just want the word out."
Every January, the Social Security Administration mails 1099s to 53-million beneficiaries. This year, a simple computer programming error sent incorrect statements to about 2.7-million people. In most cases, the incorrect amount wasn't much... But it did affect elderly and disabled recipients.
"When you're dealing with the elderly, $10 to them -- that's a lot of money in some cases, so it's just very frustrating."
Social Security officials tell TV9 the error created problems for some Medicare Part C and Part D recipients. The "Benefits for 2007" fields and the "Description of Amount in Box 3" contain inaccurate information.
"If it's affecting my mother-in-law, it's probably affecting a lot of other eastern Iowans that may not have their tax returns professionally prepared."
Hannen called the Social Security Administration about the problem, which officials have already corrected. To find out if your 1099 contained errors, call or visit your local Social Security office. Those people affected should wait for a new 1099, which will say “Corrected Tax Information” in plain red lettering.
Go to here to watch the live interview
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