LAUSD payroll fiasco brings tax woes

For thousands of Los Angeles Unified School District employees, tax time this year has been even more stressful than usual. Harrison Sheppard in the Daily News.

The district's payroll system fiasco resulted in about 3,400 incorrect W-2 forms being mailed to employees earlier this year, leaving many of them worried about facing penalties if they file late or incorrect tax returns as Tuesday's filing deadline approaches.

As of Friday, however, district officials said they've managed to resolve most of the outstanding tax filing issues.

District chief operating officer David Holmquist said there are about 50 employees who still have issues to resolve with their W-2s and another 200 who may have had problems with incorrect contributions to an employee retirement plan.