Department of Taxation and Finance

Designation of Delinquent Tax Cases as Uncollectible (Follow-Up Review)

Each year the Department of Taxation and Finances designates as uncollectible an average of more than $1 billion in overdue taxes. In our prior audit report 94-S-54, we found that Department staff often did not follow the proper procedures when trying to collect overdue taxes and when authorizing the taxes as uncollectible. We also identified long delays in the actions taken by Department staff to pursue overdue taxes; such delays increase the likelihood that overdue taxes will become uncollectible. We recommended certain improvements in Department operating practices. In our follow-up review, we found that some of these improvements have been made, while other improvements are still in progress.

For a complete copy of Report 96-F-3 click here.
For a copy of the 90-day response click here.