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One keystroke = $38 billion gone

March 22, 2007

I’d hate to be this guy.

A computer technician was doing some routine maintenance last summer at the Alaska
Department of Revenue
 when he accidentally deleted applicant information for the state’s $38 billion oil-funded
account, according to this story on CNN.com.

Not only did he kill out info on the Permanent Fund Dividend, the state perk that makes living in all that cold bearable for many Alaska residents, the worker also mistakenly
reformatted the backup drive.

No worries. Big government agencies always have backup material, right? Right? Well, Alaska tax officials discovered that the department’s backup tapes were unreadable.

File_box_2
At least the department had the original payout info on paper … in 300 cardboard boxes. Those documents were rescanned to replace the 800,000 lost electronic images.

After much overtime, it all ended OK. For residents, anyway. Last fall, most of the eligible Alaskans got their state oil money rebate checks, which came to $1,106.96 apiece.

The state, however, is out almost $221,000 in data recovery costs.

The application deadline for this year’s Permanent Fund payout is coming up, March 31 to be exact. I’m sure every Alaskan will be making their own form copies this time around.

Obviously, you and I don’t have financial data of that scale on our computers, but the Alaska SNAFU is good reminder that we need to regularly back up all our PC or Mac files.

If you’re using computer software to do your taxes, make sure you regularly hit "save" during the process. And definitely print out a paper copy. Just in case.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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