It isn’t just the IRS that cracks down on delinquent taxpayers and comes collecting on tax debt. Many cities have begun to step up their efforts by knocking on doors looking to collect on back due city taxes. The city of Philadelphia is currently pursuing the pension benefits of 2,500 taxpayers who are delinquent on their taxes.
Pension Benefit Checks At Risk
Beneficiaries of the city’s retirement pension fund who owe back taxes may find themselves stripped of their checks for a while until their debts are paid off. The city reports that 2,500 city retirees owe almost $13 million in back taxes, a debt in which they can no longer afford to let go uncollected.
Strapped for cash, the city of Philadelphia intends to collect on the debts by helping the delinquent taxpayers set up a payment plan. Since the average tax debt is more than $5,100 a person, the city knows that many of these retirees simply cannot afford to pay their debts in full. Similar The city plans to offer halt pension fund garnishment orders as long as the taxpayer is making payments towards an installment plan to repay the tax debts.