Collection Agency Helping Montana Town Collect Taxes

HELENA, MT — The Department of Revenue has renewed its contract with a government debt collection agency that collected nearly $2.9 million in previously uncollectable taxpayer accounts.

The contract with Texas-based GC Services resulted in $2.3 million for the state, said Don Hoffman, acting director of the Revenue Department.

GCS is paid 18.9 percent of the money it collects.

Currently the Revenue Department has about $54 million in outstanding income taxes. GCS is charged with trying to resolve approximately $24.5 million of the outstanding liability. The accounts include small balances of less than $200, out-of-state accounts and accounts more than two years old. The department will continue its active collection on other outstanding balances.