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Auditors: Franchot's office miscategorized 14,000 tax returns, sent $8.7 million to wrong towns

Auditors: Franchot's office miscategorized 14,000 tax returns, sent $8.7 million to wrong towns

The office of Maryland Comptroller Peter Franchot distributed $8.7 million in tax revenues to the wrong towns in Montgomery County, state auditors say in a report to be released on Thursday.

Auditors blame the mistake on the erroneous classification of more than 14,000 returns.

Auditors also found problems with how the office handles out-of-state tax credits, keeps information secure, and issues replacement refund checks. The audit, obtained by The Baltimore Sun, is expected to be broadly released Thursday.

The comptroller's office said it has worked diligently to correct the mistakes.

Franchot, a Democrat, defended his office Wednesday.

"We have the...

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