Mellon Bank Tax Return Problem Gets Worse
The amount of the destroyed tax return checks was estimated to be at least $810 million.
Now it appears that the number of mishandled tax returns exceeds  70,000, with an estimated $1.2 million in accompanying payments.
Mellon Bank lost its contract with the IRS to collect and process tax returns.
Affected taxpayers are not being penalized by the IRS. So far, the IRS has spent approximately $2 million to straighten out problems caused by the mishandling of tax documents.