Catchy names notwithstanding, don't be snared by these sites: Caught in the Web (Maryland) CyberShame (Louisiana) Debtor's Corner (South Carolina) DelinqNet (Minnesota)
Online humiliation is turning into an effective -- and lucrative -- way for states to get individuals and businesses to fork over unpaid taxes. More than a dozen states, plus New York City and the District of Columbia, display tax deadbeats on the Internet. Connecticut, for example, posts the names of the 100 taxpayers with the largest debts outstanding, currently totaling $8.9 million. Other states list all taxpayers with debts over a certain amount. Before posting a name, states send several written notices and double-check the information for accuracy.
The lists don't cost much to compile, and they yield results even before names are posted. "When you tell people who have the money but simply aren't paying that Internet posting is the next step, you would be amazed at how many people pay up," says Verenda Smith of the Federation of Tax Administrators.
Since North Carolina launched its Project Collect (which includes an online list of tax debtors) three years ago, the state has collected $377 million in back taxes. And so far "law-abiding taxpayers think it's great," says Kim Brooks of the North Carolina Department of Revenue, in Raleigh. "They know that if others don't pay their fair share, then the burden falls on everyone else."
MAGAZINE
