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Audit reveals problems with state collections

LANSING, MI (AP)--   A state audit faults Michigan's Treasury Department for problems collecting delinquent taxes and debts owed to state agencies. 

The Office of the Auditor General released a report Monday finding that 76,000 tax assessments were issued with an incorrect balance, some which were improperly referred to collections. The state also was flagged for not pursuing delinquent debts in a timely manner and not monitoring a contractor hired to collect debts.

Auditors also say the state did not sufficiently oversee a program to identify businesses without a license for sales tax collections and withholding.

The Treasury Department agrees with most of the audit findings. It told auditors that assessments with potentially incorrect balances were put on hold in April and the assessments should be corrected by the end of this month.