taxcollect041808
On the homepage
Business
Out There
Politics
Vikings
Home | Politically Connected | State Politics
Plan would use electronic bank records to help collect on tax debts
Print this story
E-mail this story
Save to del.icio.us
Share on Facebook
Share on DiggMore from State Politics
Minnesota tax collectors want to enlist banks -- and their electronic records -- in their search for the assets of tax cheats.
The state Revenue Department is pushing a plan to collect an extra $10 million a year in outstanding taxes by making banks, credit unions, life insurance companies and money market mutual funds scan their records regularly and pass on data on tax debtors so the state can get its money.
The provision made it into Gov. Tim Pawlenty's budget recommendations and budget bills in both houses of the Legislature -- much to the dismay of banks and consumer privacy watchdogs.
With the government running a $935 million deficit, Revenue Commissioner Ward Einess said the plan would help track down some of the more than $450 million in unpaid back taxes. He said several other states already match up bank accounts and tax debts.
Still, there's resistance from financial institutions, who question whether it would bring in the promised dollars or needlessly draw them deeper into the tax-collection fray.
Now, auditors dig through old tax records to find account numbers, file a lien against the debtor and then send letters to the banks asking them to confirm the existence of an account. That labor-intensive approach netted $12.5 million last year.
Matching the records electronically every three months would dig up cash they haven't found yet.
Einess said his agency wouldn't use data matches to collect from taxpayers who underpay by small amounts through errors or oversights. A debtor would make the list transmitted to banks only after getting multiple notifications and chances to settle the debt.
ASSOCIATED PRESS
Recent State Politics stories
Often in public eye, but off the radar - April 17, 2008
Often in public eye, but off the radar - Presidential candidates have strict accountability rules. But for someone just "testing the waters," well, it's different. More
- On the line: State law curbing 'robocalls'
- Abortion debate dogs envoy to Vatican
- Indian housing project back on docket
- Pawlenty trying to plant his name with Iowans
- Transit hub advances amid history
- Pawlenty draws wallets fat...and famous
- It's official: Rybak in governor's race
- Herb Schultz loved to bike, get others pedaling
Current state office holders
Governor: Tim Pawlenty
One of only a few prominent Republicans to win a competitive re-election contest in the Democratic sweep of 2006, Tim Pawlenty is widely seen as politically shrewd and naturally likable.
- Lt. Governor: Carol Molnau
- Secretary of State: Mark Ritchie
- Attorney General: Lori Swanson
- State Auditor: Rebecca Otto
Minnesota's political giants: Learn more about the men and women who have shaped Minnesota's political history.
  Open positions!A new career awaits. Look through thousands of listings to find your new job. Start now! No resume? No problem!Create a skills profile in minutes, let a recruiter match you to an open position. Click here to get started. |
Win tickets to see Electric Six with The Gay Blades and Millions of Brazilians at First Avenue.Vita.mn presents Electric Six with The Gay Blades and Millions of Brazilians at First Avenue on Nov. 23. |
Comment on this story | Read all 7 comments | Hide reader comments