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You are here: Home / Politics / Govt / Keeping delinquent tax collections in-house

Keeping delinquent tax collections in-house

April 14, 2007 By WRN Contributor

Rather than outsourcing, the new Secretary of Revenue wants to set up the Department of Revenue's own collection agency to collect back taxes.

Secretary Roger Ervin says delinquent taxes are a big problem. Out of the thirteen billion dollars collected some seven hundred million goes unpaid.

Besides the so-called Web Site of Shame that lists those individuals and companies who owe back taxes, Revenue says adding ten people to track down tax holdouts would save the state money and collect more.

Last year, outside collection agencies brought in a little over 5-million dollars. But roughly a million and a half of that was kept by those agencies in commission. Not a good percentage says Ervin.

If the legislature approves the additional staff, Ervin thinks his agency can collect six or seven million in back taxes by the end of the year alone. And after that start getting closer to the seven hundred million number.

Ervin doesn't like to call the new in-house approach aggressive. Just more professional and efficient. 

AUDIO: Jim Dick reports ( 1:10 MP3 )

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Filed Under: Politics / Govt, Taxes



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