States Cracking the Whip on Delinquent Taxpayers

In these tough economic times, states are getting tough with people who owe back taxes.  In California, not only does the state publish an on-line list of the “top 1,000” worst tax offenders, but those people on the list can lose their driver’s licenses.  From the Wall Street Journal:

The California driver’s license suspensions will affect the state’s top 1,000 tax debtors, whose names will be published online in two lists of 500 each. One list will be drawn from the income-tax rolls, with those on the second drawn from sales and other tax rolls. The new law expands an existing program by doubling the number of names on the published lists and adding the license suspensions.

Iowa takes a slightly different tactic.  Instead of suspending driver’s licenses, Iowa blocks vehicle registrations if tax debts are outstanding for too long.

The WSJ article about this topic is an interesting read.  You can find it here.