Department of Revenue gets aggressive on tax collections

Recognized for family farm Helen Yeager and her daughter, Marianne Ash, are pictured with Lt. Governor Becky Skillman (left) after receiving the Hoosier Homestead Award in recognition of their more than 100-year commitment to Indiana agriculture. The presentation was made at the Indiana State Fair in August. The farm, located in Carroll County, was established in 1893. The Yeager family joins nearly 4,500 Hoosier Homestead farms. To be named a Hoosier Homestead, farms must be owned by the same family for more than 100 consecutive years and consist of more than 20 acres or produce more than $1,000 of agricultural products per year. The person in back is unidentified. Photo provided

The Department of Revenue is continuing its charge to strictly enforce collections on taxpayers who did not take advantage of the state's 2005 amnesty offer. Those efforts are outlined in the final Indiana Tax Amnesty report released by Governor Mitch Daniels.

Among efforts, more than 32,000 bank account levies and more than 2,000 garnishments have been issued, and $2.5 million has been collected. These actions alone have the potential to bring in $39 million.

"We said we'd go after everyone who didn't take advantage of the one-time amnesty opportunity, and we're making good on that promise. Follow-up and enforcement are equally as important," said Daniels.

The final report of Indiana's successful amnesty program shows that the program recovered more than $244 million in delinquent taxes dating back as far as the 1970s. Since August, shortly after the Dept. of Revenue processed the final amnesty payment plans that were due June 30, it has enlisted three collection agencies to initiate aggressive collection actions, including garnishments, bank account levies and the initiation of collection lawsuits to pursue the more than $1.9 billion in tax debt that was amnesty eligible. Revenue Commissioner John Eckart said this firm approach is working.

On Sept. 7, the Dept. of Revenue also launched a mass-billing campaign to collect on unpaid sales tax from more than 70,000 businesses for tax periods from July 1, 2004, through May 31, 2006. These are businesses that have not filed taxes or which filed, but have not paid. The billings were for tax periods outside the scope of amnesty.

"Sales and withholding taxes are themost abused in terms ofmissed filings and payments," said Eckart.

Sales and withholding tax make up 75 percent of Indiana's annual tax revenue sources. Since the start of themass-billing campaign, more than 12,000 businesses have contacted the department to address their tax debts and more than $2.5 million has been collected. Another collection campaign for withholding tax targeting 42,000 businesses will start in October.

The final Indiana Tax Amnesty report is available on the Department of Revenue'sWeb site at www.in.gov/dor