The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Saturday, August 20, 1994              TAG: 9408200023
SECTION: FRONT                    PAGE: A14  EDITION: FINAL 
TYPE: Letter 
                                             LENGTH: Short :   36 lines

A TAXING MESS OF TAXES

Mark Miner, spokesman for Attorney General James Gilmore, blames the Defense Department for not providing accurate retiree tax information to the commonwealth for 1985 through 1988 (news, Aug. 10).

Where are the commonwealth's records? Were they thrown away? The state was well-aware of the impending liability, but apparently disposed of records to avoid taking any action or responsibility in the matter.

I filed tax returns for 1985 through 1988, with full supporting documentation on military retired pay. I also filed an amended return in 1988 for the 1985 tax year, based upon the illegal withholding; therefore, I know that the commonwealth was provided with sufficient records in order to make the necessary tax-refund calculations.

It should be relatively easy for the Department of Taxation to look at the W2P forms originally filed by the retirees and calculate the correct refund rather than hope that the retirees will not respond to the recent mailing by the Tax Department.

Mr. Miner says that information provided by the Defense Department was correct for the 1985 tax year but off by one year for the other years. The commonwealth provided me with information only for two of the four years, and for 1985 it was off by more than 300 percent.

If the state can't get this one right, what will the commonwealth do when Phase II (federal civil-service retirees only) comes along?

DONALD D. LUTZ

Virginia Beach, Aug. 11, 1994 by CNB