‘Human error’ to blame for incorrect tax letter sent to Alabama veterans

Alabama News

Alabama does not collect income tax on military pensions

UPDATE: (1/28) — The State of Alabama Department of Revenue responded to News 5 with the following statement:

“The Alabama Department of Revenue inadvertently sent out several letters of the type received by Mr. Mattox due to human error. The department has sent notices to the individuals who received these letters indicating that no further action is required. Anyone who received such a letter should contact the department at the number or address noted in the letter for more information, including procedures for requesting a refund if payment has already been submitted in response to the letter.”

MOBILE, Ala. (WKRG) — A local veteran wants to warn other vets about a letter some are apparently getting from the Alabama Department of Revenue.

Raymond Mattox is a retired Air Force Captain who lives in Saraland. He received a letter in the mail Saturday from the Alabama Department of Revenue stating he failed to pay $1,400 in taxes on his military pension in 2010. The state tacked on an additional $1,400 in penalties and told him to pay in 30 days.

“My initial reaction was ‘what is this?'” Mattox said. “My blood pressure went up and I got pretty annoyed.”

Mattox thought the letter might be a scam since he knew Alabama is one of fourteen states that doesn’t tax military pensions. Monday, he took it to a revenue department tax office and confirmed it was legitimate. There, he says, he learned other veterans had received similar letters.

Mattox worries that some veterans will immediately pay the taxes.

“Military people follow orders and we do what we’re supposed to do,” he said.

News 5 contacted the State Department of Revenue. A spokesperson said the situation is being investigated.

In the meantime, if you are a veteran who got a similar letter, check with the state or your tax accountant before paying any money.

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