Northeast News
Sept. 9, 2014
KANSAS CITY, Missouri — Since launching its integrated revenue system in June 2013, Kansas City, Mo., has collected more than $925,000 from 2,800 delinquent taxpayers. The city’s new revenue system, RevKC, syncs with Internal Revenue Service data to identify individuals and businesses failing to pay earnings tax. These automated matches – which were ad hoc before the new system – have resulted in enhanced compliance and revenues.
The city requires anyone living or working in Kansas City, Missouri, to file and pay earnings tax. These new matches will initially target those residents who work for employers located outside the city who fail to withhold the earnings tax. The city does not require nonresident employers to collect the earnings tax by withholding the city portion of tax from the worker’s paycheck, and not all of those workers voluntarily remit the tax.
To handle the increased volume of cases, the city has hired one new municipal revenue agent and has plans on hiring two additional staff. In a press release, Mari Ruck, commissioner of Revenue said the city is poised to track down thousands of individuals and businesses who owe back taxes.
“The computer records from the IRS allow the City to compare City tax records with what is reported to the IRS. The IRS has more complete return information and fewer tax evaders,” Ruck said.