Holy Hundreds of Millions of Delinquent Taxes Dollars
The Missouri Department of Revenue is putting out a bid for the collection of delinquent taxes.
Inside the RFP are some eye-popping numbers. Previous legislatures have tried tax amnesty from time to time with varied success. The most recent time, the response was underwhelming.
From the RFP
The Department of Revenue refers delinquent Personal Tax Accounts and Business Tax Accounts to a third party for collection once the accounts are at least six (6) months old. Prior to placement with the third party collection agency, various collection activities may have taken place by the Department of Revenue… The following shows the average annual referrals of delinquent Personal Tax Accounts and Business Tax Accounts (including actual and estimated amounts, penalties and interest to date) assigned under the current collection contracts for FY15 and FY16. Note: The Department of Revenue started referring accounts for second placements in March 2015.
Personal Tax Accounts – First Placements – # of Accounts: 46,176; Account Balance: $95,054,956
Business Tax Accounts – First Placements – # of Accounts: 5,094; Account Balance: $28,630,717
Personal Tax Accounts-Second Placements – # of Accounts: 36,402; Account Balance: $114,192,313
Business Tax Accounts-Second Placements – # of Accounts : 10,310; Account Balance: $144,352,338