Tax forms may be out by Tuesday

By John Christian Hopkins
Diné Bureau

WINDOW ROCK — If — and it's a big if — all goes well, Navajo Nation employees could have their W-2 and 1099 tax documents printed on Tuesday, according to Ramsey Harrision, accounting manager for the Office of the Controller.

Under federal law, employees are supposed to receive their tax forms by the end of January. But trouble with the tribe's FMIS system and PeopleSoft software has snarled that process, and prevented the printing of the documents needed in order to file federal and state income tax returns.

"We received an extension from the IRS," Harrison told the Budget and Finance Committee Friday. The tribe has until the end of February to distribute the W-2s and 1099s, he said.

However, although the Navajo Nation received a waiver from the IRS, states could still levy penalties, Harrison said.

Since employees can't file their tax returns until they receive their W-2 forms, do they also qualify for an extension, asked Dave Nez of the tribe's Social Services department?

Individual taxpayers may request their own extensions, Harrison said.

"What do we say, 'It's not my fault, it's the FMIS'?" wondered committee Chairman Bennie Shelly.

B & F committee member Lorenzo Bedonie pointed out that even if an individual receives an extension for filing taxes, the individual will still be subject to penalties for filing late.

Committee Vice Chairman Harold Wauneka was incredulous about the FMIS problem.

"You were advised to get consultants to help with this, what didn't happen here?" Wauneka asked. "And PeopleSoft, there's nobody in the whole world who can use PeopleSoft?"

The controller's office realized there were problems in the system in mid-October, but by early December the consultants and the tribe's Information Technology staff "didn't see things eye to eye," Harrison explained. "The whole thing kind of blew up."

"This is another example of the problems with the FMIS system," said Rose Graham, who directs the education department's scholarship and financial aid office. She said only one person in the controller's office can handle the scholarship portion of the FMIS program.

"If she is out of the office we can't do anything, we have to wait until she gets back," Graham said. She urged the finance board to put the IT staff in charge of the scholarships software.

Wauneka doubted if more consultants were the answer.

"I think we have the capability. Our own Navajo people can do the same things the consultants do, we just don't train them," Wauneka said. "We just throw them out there."

He asked for a directive to be sent to Controller Mark Grant calling for him to appear at the next B & F meeting with a corrective action plan identifying FMIS system problems and his plans to correct them.

The committee approved Wauneka's suggestion in a unanimous vote.

— John Christian Hopkins can be reached at 1-505-371-5443, or by email at Hopkins1960@hotmail.com.