States target tax scofflaws with carrots and sticks.
Since New York launched a new program targeting tax delinquents last August, the state has picked up $4 million in back taxes, out of an estimated $26 million owed, according to state officials. The program, which is set to end in the middle of November, applies to taxpayers who owe more than $10,000.
In New York, the Department of Taxation began its program by mailing letters to 14,000 tax debtors, giving each of them 60 days to settle their tax debts or create a payment plan. Then it sent second letters to those who failed to respond, and it is about to send final warning letters. This week, the state will begin to suspend driver’s licenses.
In Louisiana, the Department of Revenue hopes to snare a large chunk of an estimated $2.5 billion in uncollected taxes in this year’s amnesty program, which ends Nov. 22. Much of that total is owed by just 3,000 taxpayers, mostly businesses.