DFA REDUCES OUTSTANDING RECEIVABLES
"Compliant taxpayers are suffering from a
lack of service, as a result of lagged collection and payment activities"
by Arkansans not paying their taxes. PricewaterhouseCoopers LLC, Efficiency
Project report, 2016
(May
2018) The state Department of Finance and Administration (DFA) continues to
reduce tax debts owed Arkansas, recovering $132.3 million in outstanding
receivables in calendar year 2017. This is $21 million greater than the amount
($111.3 million) collected by DFA in calendar year 2016.
PwC
identified $314 million in outstanding receivables in its 2016 report for the
Policy Foundation. DFA responded to
PwC's report with new initiatives.
·
DFA improved receivables collection using
payment plans by $1.7 million in 2017.
·
DFA also started a "second shift"
payment plan that collected $10.7 million in 2017.
These
three DFA actions boosted collection recovery by $33.4 million in 2017.
·
DFA recovered $52.2 million in outstanding
receivables in 1Q-2018. This is $10
million greater than the amount collected in 1Q-2016.
·
DFA's payment plans collected $11.5 million
in 1Q-2018.
DFA
improved the state's "collection recovery" by $21.5 million in
1Q-2018.
DFA's new
strategic plan (2018-19) notes the agency will seek to "leverage state
resources to deliver results for Arkansas taxpayers." The agency has taken the following actions to
reduce receivables in 'collection recovery:'
·
Establish an after-hours collections phone
number.
·
Identify and implement new and existing tools
to enhance revenue collections.
·
Increase intra-agency collaboration on
revenue collections.
--Greg
Kaza