Aug. 12, 2008 at 10:48am
Department of Revenue is doing an excellent job managing state debt collections, according to a performance audit issued today by State Auditor Brian Sonntag.
The state auditor's office reviewed the debt collection practices of the department. The audit found that the department employs all the best practices evaluated by the auditor plus additional practices that have contributed to its success.
Examples of best practices cited in the report include an Initial Contact Team that uses autodialing technology to contact taxpayers who fall behind on their tax obligations, and data sharing with the Department of Labor and Industries and the Employment Security Department to help all three agencies focus their collection efforts.
The audit said 76 percent of the $3.3 billion in debts it tracked fell within the responsibility of revenue agents, and that the department was an "excellent performer" in pursuing successful collection of those unpaid taxes.
The department has put into deferred status less than 0.2 percent of its $17.9 billion in overall collections, an average of $33.5 million annually.These uncollected taxes generally stem from bankruptcies and other instances where businesses no longer have attachable assets. Even then, the department continues to seek to collect those taxes if assets become available, such as through a lien on a property that may eventually be sold. Only after 12 years does it finally write off the taxes as uncollectible.
Posted in BE Daily, Law and Legislation, Olympia, Workforce by Steve Dunkelberger | Email Steve
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