According to a recent Department of Revenue Services (DRS) press release, a small change in the state’s tax administration laws is proving to be effective in getting delinquent taxpayers to pay up.
The new law, enacted in the 2013 session (PA 13-150, § 5), bars the DRS commissioner from issuing or renewing certain permits or licenses, including sales tax permits, for anyone who owes any state taxes for which all administrative or judicial remedies have expired or been exhausted. Under prior law, DRS routinely renewed the permits, even if a business had not paid its taxes.
This small initiative is showing results. In the first three months since the law took effect, 187 delinquent taxpayers have paid back over $520,000 in delinquent taxes.
The permit denials are just one way the state is trying to collect back taxes. DRS is also in the midst of a tax amnesty program designed to encourage residents and businesses owing back taxes to come forward.
