Department of Taxation and Finance

Designation of Cases as Uncollectible

The Department of Taxation and Finance takes various steps when attempting to collect delinquent taxes. When these steps are unsuccessful, the taxes are considered uncollectible and are no longer actively pursued. The Department has established guidelines specifying the minimum collection actions required before cases can be designated as uncollectible. To determine whether these guidelines were followed, we reviewed a sample of 490 cases that had been designated as uncollectible. We found the Department had generally adhered to its guidelines in all 490 cases. However, we noted that Department staff sometimes exceeded their authority in making these designations and recommended that controls be strengthened to prevent such lapses in the future.

For a complete copy of Report 2006-S-112 click here.
For a copy of the 90-day response click here.