Saturday, January 1, 2011

State is not good at collecting money

From the Huffington Post:

New York State is currently in a serious financial condition. Each time it looks like there is an idea that might plug some of the deficit, the state shoots itself in the foot. And with the passage of time, the deficit grows bigger and bigger.

In 2010, New York State had the opportunity to collect over $250 million in delinquent taxes. Instead, they fumbled it. They collected only $45 million through the 2010 Penalty Interest Discount Program. To say the program was poorly run, poorly publicized, and poorly planned would be an enormous understatement.

To illustrate just how sloppily this program was supported and marketed, one had only look at The Department of Taxation and Finance's website, where it actually advertised that there was "no tax amnesty program" despite agreeing to conduct one under legislative orders. To make things worse, the Department told the state legislature that tax amnesty would raise $250 million.

If this story isn't galling enough, take a look at our neighboring states New Jersey and Pennsylvania which, in the past, have raised $725 million and $261 million respectively through blanket amnesty programs. California saw total revenue of $4.3 billion in 2005. Pairing the minor-league $45 million gain in New York State, a state badly in need of revenue, against the successful returns, well, it only highlights the incompetence of New York's bureaucrats.

So, how did Pennsylvania rake in $261 million? It started with Governor Rendell who went on television and radio; created call centers; and aggressively collected as much as he could in tax dollars. If New York relies on spotty, half-hearted initiatives, then it will only continue to miss out on hundreds of millions of dollars in revenue, and the public will be the loser.

Since 1985, New York State has collected a grand total of $1.6 billion from three general tax amnesty programs and four targeted amnesty initiatives. Since September of 2009, New York has issued five requests for proposals for debt collection assistance from third-party vendors -- and they have little to show for it. Clearly, there's a fruitful "end" to be had, but until New York's legislators join together to support a planned amnesty program, the deficit will only get bigger and the number of non-payers will grow.


Anonymous said...

when is nys and nyc dept. of taxation going to go after the millions of landlords of illegal conversions,who do not declare rental income,monthly and yearly,on their tax returns?

when a d.o.b inspector is denied entry to the dwelling complained about,the landlord should automatically be investigated for rental income tax fraud.

many are ripping off the system ,while we honest homeowners pay for the additional public services for the illegal tenants and landlords.

the d.o.b records are available on the website with all of the wasted visits by the inspectors.act now ,we need the revenue in n.y.c.

wake up I.R.S and n.y.c.and nys. billions of tax dollars are being stolen by these thieves.

Anonymous said...

I have a corporation which has did business years ago, but has done none over the past few years. It never made a profit, and was national, the New York sales tax was less than $50 most years.

I have been getting letters saying they are "estimating" the company made a ton of money last year (it made nothing and sold nothing) and I owe thousands of dollars. I had been thinking of reviving the business and maybe even renting an office and hiring someone to do shipping - now I'm thinking of closing it down. There is just too much red tape in running a business - even one that is doing no business. The expenses and time just adds on and on - you need to send sales tax in four times a year, even if there are no sales, and of course do personal and corporate taxes. If you are doing business you need to buy an advanced copy of Quickbooks. Then there's all kinds of laws to discourage running businesses from home. It's clear small business is frowned upon, I guess big business who owns the state wants it that way.

Anonymous said...

In NYC corrupt landlords, developers, contractors break the law sometimes actually fined but city doesn't make them pay. If actual people don't pay fines they go to jail but not the rich corrupt smoes in NY.

Obama hires a guy from NY to be Treasurer that did not pay taxes. Did he have to pay Ny fines and face jail time?

Anonymous said...

The State is good at spending your money.

I have experience with NYS tax law said...

To poster number 2, who has the tax debt for his inactive corporation- your tax debts may be greater than you know. Until a corporation is officially dissolved, it is required to file annual returns and penalties accrue for failure to file. Taxes may also be due regardless of how much or little profit the business made. NYS can and will levy against any other income/property you have or acquire to collect on your tax debt until the day you die and thereafter.

Anonymous said...

the illegal conversion property ,tax cheaters must be prosecuted a.s.a.p. this will increase n.y.c. and n.y.s. revenues into the billions. and possibly stop them from converting their neighborhoods into absentee rental areas.

the honest homeowner has to deal with years of crap and harassment left by the absentee landlord.

the f.d.n.y. and n.y.p.d. visits to these sites are way above average.....