New York Loses Millions Not Pursuing Sales-Tax Evasion: Audit

New York tax authorities failed to exhaust all sales tax collection efforts in hundreds of delinquent tax cases, giving up on millions of dollars that could have gone to the state’s coffers, according to an audit by the state’s fiscal watchdog.

The review by the New York Office of State Comptroller narrowly focused on a sliver of cases included in the $849 million in unpaid sales tax over a four-year period. It found the Department of Taxation and Finance cost the state at least $4.8 million in sales tax revenue by failing to adequately pursue unpaid taxes, interest, penalties and ...