“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
