Tax Amnesty

Indiana’s Tax Amnesty ends tomorrow, so my guess is that we will be seeing some news in the next few days telling us how much the Dept. of Revenue collected. I don’t know if or how many reporter types read this page, but some information I would find useful:

Gross amount collected or promised.

Breakdown between amount actually received and amount promised. (As a debt collector, I can tell you that every once in awhile, a debtor’s promise to pay doesn’t work out. Or, more accurately, “most of the time” the promise doesn’t work out.)

Collection costs — how much did we pay outside contractors or additional to state employees to get what we got.

Amount compromised — how much debt was forgiven to get what we got.

My guess is that the executive branch press releases will tell us the answer to the first question but none of the rest.

The Indy Star has a short article entitled $66.4 million paid or pledged in tax amnesty. Once again, no information about what kind of discount that $66.4 million paid & pledged represents against the amount actually owed. No information about how much of that goes to the collection agency. And, no information about how much has been paid versus how much has been pledged. Governor Daniels says “most” of that has been paid, but Gov. Daniels says a lot of things.

Incidentally, it bears mentioning that this is a much better deal for the rich than for the poor. As, I suppose most things are. In one instance of which I am aware, my collection efforts on behalf of a creditor helped force a small business out of business. Now they are living on their social security with a few pieces of property with both my client’s judgment lien and the state’s tax warrant lien encumbering the things along with their mortgages. Taking advantage of the tax amnesty would be a good deal for these folks. These folks, unlike some others, weren’t scofflaws, I don’t think. Just had some personal difficulties that translated to record keeping problems. These are the sorts of folks I would least mind being able to take care of the amnesty. But, they have no real income or assets, so it’s not going to happen. This little anectdote doesn’t really say anything for or against the amnesty itself. Just goes to show that it’s expensive being poor.