Collection Agency Collects $1 million for State Already

HELENA, MT - A company hired by the state Revenue Department to collect past-due income taxes from Montanans has taken in $1 million so far and the state gets to keep about $800,000 of that, officials said Thursday.

The program has been so successful in its first three months that the department is likely to renew its one-year contract with Texas-based GC Services Limited Partnership, said Neil Peterson, administrator of the agency's Customer Services Division.

The state hired the company last October and assigned it the job of collecting about 25,000 delinquent accounts worth $27 million. The work began in late November.

The $1 million threshold was reached Tuesday. Because the contract with GC Services gives the company 18.9 percent of the money, the state's share is $811,000.

Accounts turned over to GC Services belong to out-of-state residents, are at least two years past due and have a balance of $20 to $200.

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