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Mellon Bank head says workers hid IRS returns because they felt harried
AP ^ | 9/5/2001 | AP

Posted on 09/05/2001 9:16:28 AM PDT by TLBSHOW

Mellon Bank head says workers hid IRS returns because they felt harried

PITTSBURGH (AP)

Workers at an IRS processing center run by Mellon Bank hid thousands of tax returns or put them with papers to be shredded apparently because they thought they had fallen behind, a top Mellon official said.

At least 40,000 federal tax returns and payments totaling $810 million were either lost or destroyed at the Pittsburgh center, which handled returns and payments sent by taxpayers in New England and parts of New York state.

Earlier this month, Mellon lost its contract to run the Pittsburgh IRS Processing Unit because of what bank chairman Martin G. McGuinn called "gross disregard" and some employees' failure to follow company policy.

The employees, who were immediately fired, apparently disposed of the records "because they felt they were behind in their work," McGuinn said in an internal memo issued Tuesday.

Loss of Mellon's contract to run the center resulted in layoffs or transfers of 106 other employees.

Mellon Bank officials repeated that it does not appear to be a case of identity theft, stolen checks or disclosure of sensitive taxpayer information.

A federal investigation was started after taxpayers complained to the IRS that their payment checks had failed to clear. Sen. Charles Schumer, D-N.Y., said last week the agency had received 22,000 complaints of uncashed checks.

The IRS set up a special unit to handle the cases, and told taxpayers who suspect they may be affected to stop payment on uncashed checks and to send a new return and check to another IRS service center in Andover, Mass.

Mellon began processing tax returns and payments for the IRS in 1993.

In 1985, the IRS discovered tax returns turning up in trash cans and women's restrooms and thousands of mutilated refund checks at the agency's Philadelphia Service Center. Officials blamed the problems on costly computer problems and worker turnover at the center.


TOPICS: Business/Economy; News/Current Events
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1 posted on 09/05/2001 9:16:28 AM PDT by TLBSHOW
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To: TLBSHOW
"...payments totaling $810 million were either lost or destroyed..."

And because they already lost the contract, No heads will roll - no one will be held responsible.
This is a system out of control. Hell, that's about the cost of about a hundred Blackhawk helicopters - not exactly chump change.
I'm starting to get a little tired of W's "just let it go" routine. That's OUR money, dammit!

2 posted on 09/05/2001 9:33:52 AM PDT by Psalm 73
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To: TLBSHOW
Mellon Bank is toast!
3 posted on 09/05/2001 10:48:19 AM PDT by HEFFERNAN2
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To: Psalm 73
The President of the United States should do exactly what to this private company?
4 posted on 09/05/2001 10:50:37 AM PDT by Psycho_Bunny
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To: TLBSHOW
OK, flame away, but my bet is theat these were black employees hired under some "employ the unemployable" charade launched by Mellon to get this contract or some other accomodation from a governmental agency, local, state, or federal. We probably will never know, but if nothing ever comes of this sabotage, the race of the perps may be why.
5 posted on 09/05/2001 10:51:40 AM PDT by Tacis
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To: Tacis
"OK, flame away, but my bet is theat these were black employees hired under some "employ the unemployable""

Open invitation?

6 posted on 09/05/2001 10:55:02 AM PDT by libertarian_usa
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To: Tacis
What you said is what Pittsburgh radio host Jim Quinn was saying this morning. These people were utterly unqualified for the task and, when overwhelmed by it, responded by throwing out the returns. Sounds logical to me.
7 posted on 09/05/2001 10:55:05 AM PDT by mountaineer
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To: mountaineer
My question is what is Mellon Bank doing, processing IRS forms? It seems to me that quite a few conflicts of interest and privacy concerns would prevent this.
8 posted on 09/05/2001 11:06:54 AM PDT by meenie
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To: Psycho_Bunny
"The President of the United States should do exactly what to this private company?"

Well, I don't have a copy of the contract in front of me, but I'm assuming that private company must be liable for losses incurred by the IRS, (the customer), due to the negligence of said contractor.
And if an arm of the Federal Gov. doesn't take measures to ensure OUR protection from the loss of OUR capitol (meaning $$), than someones' head should roll - and W being the Chief Executive of our country - he is ultimately in chagre of the execution of the law.
After all, the IRS is pretty good at hounding US citizens - how about a little pressure on this company.
I'm all for less government control of things - but someone must pay for losing OUR money. (Remember, the US operates using OUR hard-earned mony - they must be better stewards).

9 posted on 09/05/2001 11:14:16 AM PDT by Psalm 73
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To: taxreform
y'all are gonna love this one...
10 posted on 09/05/2001 11:14:44 AM PDT by kevkrom
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To: Psalm 73
After all, the IRS is pretty good at hounding US citizens - how about a little pressure on this company.

I think the incredible idiots working for the bank should become the 'Body cavity search' example dummies for all government agencys during weekdays and beforced to sweep the streets with their tooth brushes on weekends.

11 posted on 09/05/2001 11:19:32 AM PDT by pikachu
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To: Psalm 73
I'm starting to get a little tired of W's "just let it go" routine.

How on earth can you blame THIS on George W. Bush?

12 posted on 09/05/2001 11:22:14 AM PDT by Howlin
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To: meenie
That is an excellent question.
13 posted on 09/05/2001 11:23:57 AM PDT by Howlin
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To: Psalm 73
You didn't answer the question. Exactly WHAT is the President supposed to do? Act like a king and throw these people in jail? This was barely a petty crime at best.

And, I don't see how any money was actually lost here. Checks were shredded...not embezzled. I doubt the IRS will force penalties on persons with missing payments if their payments were sent to this sorting facility.

14 posted on 09/05/2001 11:29:44 AM PDT by Psycho_Bunny
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To: pikachu
"I think the incredible idiots working for the bank..."

I don't think it's necessarily the lower pawns (although probably incompetant), more than likely middle Management trying to squeeze extra bucks by hiring lower paid incompetants.
In any event, we the taxpayers (who pay the salaries of the IRS), should be answered to on this.
Someone just permanently misplaced 800 million of your money - you're not ticked!

15 posted on 09/05/2001 11:30:14 AM PDT by Psalm 73
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To: Howlin
"How on earth can you blame THIS on George W. Bush?"

I did not blame this on W, but he needs to get tough with these slackers in the Gov costing us money.
Sometimes his laid-back attitude ticks me off - Mr. President, get MAD, dammit!
Take an angry stand for the Klameth farmers, for example, or just take an angry stand SOMEWHERE.

16 posted on 09/05/2001 11:34:51 AM PDT by Psalm 73
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To: Psalm 73
You guys that have been hammering me because I call for accountability in our government - what's up with that?
You really think it OK that some schmucks cost US 810 million dollars?
Then the Dept. Of Educ. must give you warm fuzzies...
17 posted on 09/05/2001 11:43:35 AM PDT by Psalm 73
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To: Psalm 73
Someone just permanently misplaced 800 million of your money - you're not ticked!

I am ticked! I hope the bank management has already forked over a $800,000,000.00 check as an estimate and that the IRS knuckle draggers get to peruse their books to what else they have been screwing up. I'd also like to see the board members and write out by hand applogy letters to the folks they screwed over with an offer to cover any interest they incurred due to this event.

18 posted on 09/05/2001 1:40:10 PM PDT by pikachu
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To: TLBSHOW
All that's necessary to rid us of this sort of nonsense is to vote the FairTax into law.

It also has the side benefits of getting rid of the income tax and the IRS.

Little Willie was "The Worst President In American History".

19 posted on 09/05/2001 5:47:37 PM PDT by pigdog
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To: kevkrom
Thanks for the ping...bump for later read.
20 posted on 09/07/2001 4:25:02 AM PDT by CHIEF negotiator
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