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STAND AND DELIVER

February 22, 2008

The Tax Policy Blog passes on a nightmare of state tax enforcement extortion:

This week, we bring the story of Barry Godwin (courtesy TaxProfBlog), a controller for the Stingray Boat Company of Hartsville, South Carolina. Stingray sells boats to independent dealers, and all transactions occur over the telephone or Internet from South Carolina. They occasionally send dealers to other states but have no office or employees permanently outside South Carolina.

On July 23rd, 2007 I received a call transferred over from our truck fleet dispatcher at 10:15 am. The person on the other end was Ms. Kostak, a revenue agent for the State of New Jersey. I was immediately told that our truck had been pulled over at the weigh station on the interstate highway and could not move until we paid New Jersey for jeopardy assessment taxes. I asked Ms. Kostak why they were doing this. I was told that we had a dealer in the state of New Jersey. This incident was becoming unbelievable, so I asked her to fax me proof that she was who she said she was. I asked what I could do to let the driver go and I was told to pay the New Jersey Division of Revenue money. I asked how much and I was told it depended upon our sales into New Jersey. I looked up the sales for the past seven years as requested and Ms. Kostak quoted me a price of $46,200 to release the truck.

Sometimes taxes don't just feel like highway robbery.

Read the whole thing.

Tags: tax administration.

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