Tax Cheats, the State's After You

State Delinquents Owe State up to $500 Million

The state wants to solve some of its budget mess by going after scofflaws who have not paid taxes and there’s quite a windfall to collect -- $400 million to $500 million in back taxes owed to the state by businesses and individuals.

The state lists the top tax-delinquent individuals on its Web site and some made nearly $2 million. To be a tax delinquent, you must be at least 90 days behind on paying your taxes.

The same goes for companies.

Earlier this year, Rell proposed collecting $237 million from tax delinquents in the 2010 and 2011 fiscal years and she's added another $96 million in back taxes to her budget plan, as the state faces an estimated two-year, $8.56 billion deficit.

Connecticut remains one of two states that still doesn't have a budget for the fiscal year that began July 1. The problem is disagreements over spending cuts and tax increases.

While lawmakers and Rell remain divided over the budget, lawmakers have accepted Rell’s recommendations to add more staff to the tax department's collections division.

The tax department says it collected about $122 million in back taxes last year.

Copyright AP - Associated Press
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