Department of Taxation and Finance

Tax Compliance Division: Installment Payment Agreement Program (Follow-Up Review)

In certain circumstances, the Department of Taxation and Finance may permit taxpayers to pay overdue taxes in installments. In our prior audit report 95-S-131, we examined the controls over such payment agreements and found that improvements were needed. For example, the Department had not developed a system for evaluating the effectiveness of installment agreements in collecting unpaid taxes, and had not actively monitored for fraud and other misconduct in the use of the agreements. In our follow-up review, we found that actions have been taken to make some of the improvements recommended in our prior report; however, additional actions are needed if other needed improvements are also to be made.

For a complete copy of Report 98-F-54 click here.