‘Why aren’t people paying their taxes on time?’: Nebraska tax delinquencies grow over $310 million

LINCOLN, Neb. (KLKN) — Nebraska State Auditor Mike Foley is sounding the alarm about people not paying their taxes.

Foley said it’s a problem that has been quietly building for years.

“Why aren’t people paying their taxes on time?” Foley said.

In a letter released on Monday, Foley said the state collected $41 million in outstanding tax revenue in the past year alone, and that more Nebraskans are escaping their tax obligations.

He said tax delinquencies have climbed steadily over the past decade, reaching more than $310 million this year.

“The number just keeps going up and up and up, it just went up another $41 million, that’s a 15 percent increase over the past year.” Foley said, “So, something’s going on here, and the Department of Revenue realizes they’ve got a problem.”

He argues the issue isn’t just missed payments, but a breakdown in enforcement.

And the Nebraska Department of Revenue is brewing more ways to allocate those funds.

“It allows them to go out and hire a contractor to start scanning for other tax accounts, other bank accounts that are out there. If they find them, they can simply go into those bank accounts and take the money.” Foley said.

He said some taxpayers are “being allowed to get away with it” and called for a more vigorous, more aggressive pursuit of unpaid taxes.

Foley said it’s not just Nebraskans.

“We’re not just talking about individual taxpayers, we’re talking about corporations as well and partnerships,” he said, “Sometimes sales taxes are being collected from someone who is selling something, they’re collecting the sales tax, but they’re not sending that money on to the state government.”

And while Foley pushes for accountability, he also said any solution must recognize that some Nebraskans are struggling — not scheming.

He said this isn’t just about dollars; it’s about fairness.

Taxpayers who pay on time are shouldering the burden of those who don’t — and the state said that gap can’t keep growing.

“Sometimes it’s easy not to pay the government because you can get by with it for so long, but the message goes out to folks, you have to pay your fair share of taxes.”