Failing to file state income taxes has caused political headaches for some lawmakers, but for many state employees, the consequence has been especially dire: They've been fired.
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A 2003 law directs agency heads to fire state workers who do not resolve their income tax problems. The law requires the Oklahoma Tax Commission to notify agencies that have employees who have not filed their state returns.
"We don't keep track of terminations, but there have been numerous people fired due to this law,” said Paula Ross, an Oklahoma Tax Commission spokeswoman.
Ross said she was aware of the firings because agency officials have reported the employee terminations.
Oklahomans who face an April 15 tax-filing deadline should be aware that failure to file is a criminal offense under state law, a misdemeanor punishable by up to a year in jail and a $5,000 fine. But offenders rarely are prosecuted.
"I know people have been prosecuted, but the cases have been handled by the district attorneys and I don't have numbers on that,” Ross said.
In recent years, she said the Tax Commission has exclusively used a civil procedure to compel reluctant taxpayers to resolve their tax problems.
The Associated Press asked the Tax Commission to outline its procedures after four state House members got letters for failing to file their returns.
One of them is Rep. Lance Cargill, R-Harrah, who stepped down as House speaker soon after published reports said he did not file income tax returns for 2005 and 2006. Cargill, who voted for the law to require the firing of state workers who did not file their returns, also was late paying property taxes on his law firm for six years.
He and the other lawmakers have apologized for the tax-filing lapses and say they have taken care of the problem.
Ross said people who fail to file income tax returns and do not respond to collection efforts could still be charged with a crime as "a last resort.”
She said over the last couple of years, the commission has changed its focus from criminal prosecution to sending out "Notice to File Return” letters to taxpayers and seeking court orders directing taxpayers to comply.
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They get alot more than 30 days to resolve it. Concerned nails it on the head. OTC really has to be careful about going after everyone that doesn't file a return because as they know many (and you would be suprised how many) actually have a refund coming. Lower income filers have this issue commonly. If they knew about the tax credit for sales tax they would have coming maybe more would take the time (and expense which is what stops the very low income from filing and collecting since the credit is not automatically on the free tax software). I am fairly sure the OTC is going after those that owe substantial amounts but it is a can of worms (and probably a fair cost to the state) of going after every one who has a Okie drivers license but no return on file. The professional license compliance rule makes sure that lawyers, cpas, hairdressers etc have to file which catches many of those that owe. (A Keating idea which the Dems went along with grudgingly).
I know a state employee who had this problem. The state doesn't fire the employee immediately. They are given time, usually 30 days, to resolve the issue with the OK Tax Commission. It's only when an employee repeatedly shirks their responsibility that they are terminated.
Concerned, Central Oklahoma - Feb 11, 2008 11:31 AM
E., I hope you are reading the article wrongly. I agree that it's not as clear as it could be, but the law says "those who do not resolve their tax problems." State employees who refuse to pay should go, with their checks garnished. Failure to file shouldn't be grounds for dismissal, only if collections reach the criminal, :Rep's. Boren and Cole show where their allegiance lies. The tribes have not followed through since the gaming compacts were passed. The tribes make more money than ever, much from those who can ill afford it. Meanwhile, the predicted revenues are a fraction of the rhetoric. Governor Henry sold Oklahoma another bill of goods. "last resort" stage.
That is a stupid law! Here are people who are gainfully employeed. Why not work with them to resolve the matter? If you fire them, they sure won't have the money to pay taxes.
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