NEW YORK (MainStreet) — With the U.S. economy still ailing and national debt approaching $14.9 trillion, the federal government is under the gun to make financial ends meet. One area the government is stepping up efforts to generate more cash flow is through the collection of delinquent federal taxes.
By and large, the Internal Revenue Service estimates that 21% of federal individual taxes are not paid every year, and that number amounted to roughly $300 billion in 2008, and the government says it files about 600,000 tax liens annually to collect some of that.
But what if the federal government knew specifically where to look for the most popular places where tax delinquents reside? Well, now they can.
A study by TaxLifeboat, a Scotts Valley, Calif.-based tax advisory service, says that New York City is “far and away” the home to the most tax delinquents in the U.S. The company studied tax liens in the top 50 ZIP codes in the U.S. over the past year and concludes that New York City comprises 18% of the liens recorded in major metropolitan U.S. areas.
“The statistics suggest a rather harsh reality,” explains Tom Evans, TaxLifeboat’s founder. “Some people in New York apparently choose not to pay their taxes, and some simply don’t have the means to do so.”