Jacqueline is single. In June 2016, she receives a refund of $250 from her 2015 state tax return. Her 2015 itemized deductions were $8,000. In October 2016, her 2014 state tax return is audited, and she has to pay an additional $340 in state taxes. During 2016, Jacqueline has $2,450 withheld from her paycheck for state income taxes.
Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify.