(The Center Square) – Oregon has published the names of those it considers “delinquent taxpayers.”
“This complements existing compliance efforts,” said Deanna Mack, collection division administrator for the Oregon Department of Revenue in a news release. “Oregon’s tax system relies on taxpayers filing returns and paying what they owe.”
The DOR published a list of taxpayers it says owes more than $50,000 in taxes, penalties and interest on July 14. The department said it would share this information in mid-May, and after a two-month “grace period” for compliance, it did so.
“Publishing such a list is a commonly used tool among many states,” Mack said.
Those owing the state money include Shilo Inns Founder Mark Hemstreet who owes more than $3 million, cannabis company American Patriot Brands which owes more than $27 million and Michael Malekzadeh, the former owner of sneaker company Zadeh Kicks who owes more than $19 million.
Hemstreet owed more than $20 million in back taxes in February, according to the Willamette Week. The hotel mogul owned property across the state and was one of its biggest political donors in the 1990s.
American Patriot Brands executives and others faced fraud charges in March for enriching themselves with $30 million in funds from investors, according to the U.S. Securities and Exchange Commission.
Malkazadeh was charged with fraud in 2022 for allegedly costing customers more than $70 million in unfulfilled orders and defrauding $15 million from financial institutions, according to the U.S. Department of Justice.
The department first notified affected taxpayers through mail starting the week of May 22, according to the news release, and the department sent another notice to those who did not reply.
Subsequently, 111 taxpayers entered into payment plans by July 13, according to KOIN. These plans in total were worth just less than $27 million. At the time the list was published, debtors owed a total of nearly $332 million, according to Oregon Public Broadcasting.
Taxpayers on the list can have their information removed by paying the debt in full or entering into a DOR-approved payment plan, according to the news release. The department said it would remove the information within 14 days of the debt’s resolution.
The state legislature passed SB 523 in 2019, allowing the DOR to name debtors owing more than $50,000 online. This allowed the state to post information including one’s name, city, debt type and amount owed.
The DOR delayed the program in March 2020 due to financial hardships during COVID-19, according to the news release, and is just now moving forward.
The department said active-duty military under the Civil Relief Act and those with protective orders who are on the list should contact the DOR.
The DOR also said those seeking to resolve their debt should use the Revenue Online portal or contact the department by phone. Individuals can call 503-945-8200, and businesses can call 503-945-8100.
