Seek advice before failing on late taxes

June 17, 2009 08:30 am

— In case anyone is still in doubt about the state of the local economy and is looking for the canary in the coal mine, we’ve got one the size of an ostrich.

Not even an ostrich could justify keeping its head in the sand about the figures reported from county treasurers in this newspaper Monday. The amount of town and county taxes not paid in Delaware County has jumped 25 percent since 2007. Over the same period, Otsego County’s unpaid town and county taxes have risen about 6 percent. When folks don’t pay their town, county and school taxes within three or four months after billing, counties end up paying towns and schools for their shortages and must collect the late taxes.

While that’s certainly a blow to the county coffers _ the 6 percent Otsego figure equals approximately $330,000 in county revenues _ our main concern is the dire situation for property owners who can’t make ends meet.

While the process for a county to foreclose on a property can take years, it’s never a good thing to see so many of our neighbors finding their homes at risk.

There are many reasons why hard-working people fall behind on their property taxes, and we don’t need to list them here.

But suffice to say that with most families needing two incomes to get by even in good times, the loss of even one of those jobs can be devastating.

Throw in a major health-care concern, and it’s not hard to imagine a situation in which a choice has to be made between making a mortgage payment, buying food or medicine or paying a tax bill.

It also stands to reason that if people are having trouble paying property taxes, they’re also struggling to pay their state and federal income taxes, too.

If that’s the case, then it’s likely that the debts _ and worries _ grow higher and higher each day.

So, what is there to do? Well, we know what not to do, and that’s to put any trust in those television ads promoting some almost- magical ability to get the IRS to eliminate or greatly diminish your debt.

Instead, we recommend seeking out any of the many reputable local tax consultants and other financial advisers who can help you fashion a plan to save your home and avoid major problems with the county, state or federal government.

Clearly, the worst thing to do is to do nothing. Ignoring the problem is not going to solve anything. The ostrich in the local coal mine isn’t going away any time soon.