Department of Taxation and Finance

Division of Tax Compliance: Seizure and Sale of Assets

The Department of Taxation and Finance can seize the assets of delinquent taxpayers and sell these assets at public auctions. We examined the effectiveness of asset seizures and sales in generating tax revenue. We found that asset seizures are generally effective in collecting tax revenue, but asset sales do not generate much revenue and are costly to administer. We noted that asset sales might generate more revenue if certain changes were made in the procedures used to sell the assets. For example, seized businesses could be sold as "going concerns" and assets could be valued to ensure that they were not sold at unreasonably low prices.

For a complete copy of Report 96-S-86 click here.
For a copy of the 90-day response click here.