"That's an old debt that I thought was released in bankruptcy," McNall says. Bankruptcy trustee Todd Neilson says McNall is right — and the state is wrong. The trustee says the state was awarded $250,000 after a trial to settle the tax debt, and that amount has been paid.
Molly Wotring, a part-time elementary school worker in Hodges, S.C., typed her name in Google for fun last month. She was surprised to learn she was the fifth-biggest tax delinquent in South Carolina.
The state claimed she owed $225,253 in income taxes for the years 2000 to 2004, when she lived in Ohio. She says she got a cold reception when she called the taxpayer assistance hotline.
"I tried to tell the lady on the phone. She wasn't very nice," Wotring says.
On April 4, she went unannounced to the local tax collection office, armed with her old Ohio tax returns. An auditor apologized, she says. She is now off the list.