Rep. Seth Grove targets delinquent taxpayers with new independent authority By Jason Scott, May 23, 2014 at 2:29 PM An agreement between the commonwealth and federal government to collect delinquent income taxes generates about $33 million per year for Pennsylvania. York County Republican Rep. Seth Grove is seeking to expand that effort with the creation of a self-funded “Delinquent Tax Intercept Authority.” Grove began circulating a co-sponsorship memo Thursday to create the independent authority, which would expand on the U.S. Treasury Offset Program, or TOP. Under that program, part of the agreement obligates states to collect outstanding federal taxes by giving individual state refunds to the federal government until the outstanding taxes are paid. “This is an important step to filling our budget hole,” said Grove, who projects an additional $78 million for the general fund. Pennsylvania is facing a $1.3 billion budget shortfall heading into 2014-15. The authority would help local taxing bodies, including school districts and municipalities, Grove said. The DTIA would collect outstanding payments from the federal tax returns of those with delinquent and outstanding taxes. Grove estimates $154 million for school districts. On the municipal side, Philadelphia could expect to see $125 million restored to its budget by the authority collecting outstanding taxes owed to the city, Grove said. The York County lawmaker said he’s unsure how much staff would be needed. But the authority would not need financial assistance because it would levy a surcharge on delinquent taxpayers, he said. As of May 1, the state Department of Revenue’s tax lien list included nearly $1.1 billion in liens. The real total is probably less than that, Grove said, as many taxpayers might be in a payment plan. Their lien total remains on the list until it is paid off, he said. cpbj/apps/pbcs.dll/article?AID=/20140523/CPBJ01/140529833/Rep-Seth-Grove-targets-delinquent-taxpayers-with-new-independent-authority?utm_source=Listrak&utm_medium=Email&utm_term=http%3a%2f%2fcpbj%2farticle%2f20140523%2fCPBJ01%2f140529833%2fRep-Seth-Grove-targets-delinquent-taxpayers-with-new-independent-authority&utm_campaign=Evening+Rush%3a+Grove+targets+delinquent+taxpayers+with+new+independent+authority&template=mobileart
Posted on: Tue, 27 May 2014 11:45:30 +0000
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