RICHMOND, Va. -- For more than two years, the city office responsible for preventing government waste, fraud, and abuse has been investigating claims that the Richmond Finance Department failed to notify taxpayers when they're possibly due refunds.
The former finance employee who prompted the investigation now says the drawn-out timeframe to complete the probe makes him feel like his concerns were dismissed and not taken seriously.
In April 2022, an employee submitted a complaint to the inspector general's office alleging the finance department "is failing to notify taxpayers of credits on their accounts" for business taxes, and "after a statutory three-year period, writing the credits off the taxpayer accounts and converting them to city funds."
Credits can appear on a taxpayer's account for a few different reasons, including an overpayment by the taxpayer or an error on the city's part in applying the payment. The Code of Virginia allows taxpayers up to three years to collect a refund.
For example, Richmond business owner Jason Roop said he mistakenly overpaid on his business license tax in 2022, but the city never told him that he had a $600 credit on his account.
“It’s as simple as this. The city had money that it owed me and never told me about it. That was very frustrating," Roop said. "None of this is common sense. Any business that you work with as a customer, you assume that when you overpay or if they have a balance on your account, they’ll let you know and return that money.”
CBS 6 obtained a draft investigation report by the inspector general's office, dated December 2022, which initially substantiated the allegation that the finance department was not notifying taxpayers about credits.
The report showed more than $3 million in tax credit write-offs between 2017-2022, though at the time of the draft report, refunds and adjustments could have been made to years 2020-2022.
However, as of October 2024, official findings still have not been finalized or released.
The inspector general reports to the city council. Council President Kristen Nye said the case is still active, and she's limited in what she can share.
"The investigation is still open," Nye said. “I don’t know the status, if it’s going to be closed soon, if something’s going to be issued or if ultimately, nothing’s going to be issued.”
CBS 6 spoke with the employee, who wishes to remain anonymous, who came forward to report the claims that initiated the investigation.
He said he's frustrated with the investigation delays.
“I have tried to do everything that I can to make this right for businesses in the city, and for the most part, they've been ignored," he said. “It's astounding to me. This is the biggest thing I've ever seen in my working years of just blatant disrespect for peoples' intelligence and money."
Asked for a response to the complainant's concerns, Deputy Inspector General Craig Johnson said, "This office takes every allegation seriously. This complaint is still an open investigation."
During a July audit committee meeting, Inspector General James Osuna told committee members that the report was "almost ready to go out," but had to be "put on hold."
Osuna explained that he received legal advice from the city attorney's office that the issue at hand did not fall under the purview of his office, and he was not authorized to investigate it.
He acknowledged that his office spent "a very long period of time" on the investigation.
But the finance department tipster said he's disappointed in the response from the city and wishes he would've reported his complaints to an external state or federal agency instead.
"I thought I was doing the right thing, but honestly, I would have done things differently if I had another chance," he said.
A city hall spokesperson did not answer specific questions regarding the investigation but has previously maintained that the finance department is complying with city and state laws.
As CBS 6 previously reported, Henrico County business owners are not notified every time a credit appears on an account, according to Finance Director Sheila Minor.
However, she said the treasury reviews all accounts at the end of the year, and any existing credits over $5 are refunded to the taxpayer at that time.
In Chesterfield County, Treasurer Rebecca Longnaker said the revenue's office identifies when taxpayers overpay, and accounting staff in the treasurer's office work through the refund process as part of their daily duties.
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