There were a number of issues with respect to a relative's 2021 state tax return. Base income is calculated on federal AGI, with additions and subtractions. Generally, retirement income isn't taxed but I forgot to include it on the correct line; my fault. This was addressed on an amended return.
The return was processed quickly and a late estimated tax payment penalty plus interest was assessed. It took months for the amended return to be process. The tax was recalculated and no taxes were owed for 2021. The penalty remained on the account but not the interest.
How can there be a penalty based on paying taxes late with no tax owed? The system applies the penalty automatically but it's not recalculated automatically as the total tax amount changes. That requires manual intervention.
Also, she qualified for two rebates but that required timely processing of the tax return. The postmark date was ignored; the date the tax return was received was entered into the system.
The state isn't disputing that the return should have been posted as of the postmark date. Again, it requires manual intervention.
One of the letters she received had the name and phone number of someone in tax return processing. It turns out that was a real person who answered his own extension at the office. A month and a half ago, he asked me to raise the issues still to be addressed in an email message sent to his boss to be routed to him. Hearing nothing, I spoke to him again. He looked on the system and found the email message.
Yesterday, the penalty was abated. She should receive the remainder of the tax refund in a few days, but nothing was said about changing the tax return filing date on the system so she can receive the two rebates.
Though it's been like pulling teeth, I must say it's faster than dealing with IRS.