If you owe a tax debt in the state of Oregon, you might want to pay it soon. Beginning Oct. 1, residents who owe back taxes will have to pay collection fees on top of the fines and tax money they owe the state.
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The cost of those collection fees could be steep. Debt collectors in the state are allowed to charge fees up to 67% of the total debt owed. For $1,000 worth of unpaid taxes, that could mean an extra charge of $670.
“So, if you can pay your debt off now, you could save yourself a lot of money later,” Debbie Love-Wagner, collections manager for the Oregon Department of Revenue, said in a press release.
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The change was made to save the state money—$415,000, to be exact. That’s how much the department paid debt collectors last year to reclaim unpaid taxes.
About 200,000 Oregonians owe the state back taxes. If you’re one of those people and you don’t have the money to pay your debt in full, you can also set up a payment plan to avoid extra collections fees. Check out the department’s press release for more information, or call the department at 1-800-356-4222.
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