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.