Tax Lawyer's Blog

It’s not just the federal government that needs more of your money. States do too.

Kay Bell in a post titled State Tax Collectors Ramp Up Enforcement tells us about New York’s increased efforts to collect delinquent taxes and warns us that other states are following suit:

The rest of us — OK, all of us except Californians who have their own special fiscal and tax problems — can shake our heads and enjoy a little schadenfreude that the home state of the annoying World Series Champion Yankees is suffering such dire financial straits.

But that’s probably not a good idea.

Not only did our mothers teach us better than to be so petty, but the truth is that plenty of other states are doing the same thing.

Improved disclosure laws and new technologies, says the Times, are enabling state revenue offices to to more easily find delinquents. The newspaper cites examples of increased tax enforcement in Illinois, Minnesota and Georgia.

She then offers some sound advice:

So word to the wise. If you’re a bit behind in your state tax payments, you might want to get your finances in order and soon. Your local tax collector is probably gaining on you.

In 2009 Florida increased and intensified it’s enforcement activities and as a result our office has seen nearly twice as many criminal sales tax cases than we had in 2008.

We encourage all state and federal delinquent taxpayers to voluntary disclose their delinquencies and arrange for the repayment of any tax owed before the taxing authorities find them. Coming forward voluntarily greatly reduces the chances of criminal prosecution and allows the taxpayer to get a better repayment deal.

Do not, however, do this without first talking to a tax attorney.

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