MONTPELIER, Vt. — Vermont Gov. Phil Scott on Wednesday asked the state auditor to identify the root cause of the error that caused the Department of Labor to mail tens of thousands of tax documents to the wrong people.
Scott said he formed two “tactical response teams” to help respond to the situation and he appointed a new deputy commissioner to help lead the Department of Labor.
“State agencies and departments have a responsibility to Vermonters to deliver excellent service and to safeguard their information,” Scott said in a statement. “This incident does not meet those standards, and we must do all we can to make this right for Vermonters.”
On Monday, the Department of Labor announced that some people who received unemployment benefits were sent 1099-G forms that included tax information for someone else.
The governor said he had asked Auditor Doug Hoffer to conduct a performance audit to identify the root cause of the error and make recommendations for long-term quality control improvements.
One of the governor’s two teams will focus on expediting the recovery of the incorrect documents and the delivery of the correct ones. The second team will work to protect any Vermonter whose information may have been compromised.
He also appointed Dustin Degree, a former Franklin County state senator, as deputy commissioner of the Department of Labor.
The department is now recalling all 1099s.
On Tuesday, Tax Commissioner Michael Harrington said the department would be mailing further instructions to everyone who received a 1099, along with a self-addressed stamped envelope to return the incorrect 1099 to the department.
The department will also be providing all impacted individuals with the option to enroll in ID protection services.