The city of Bull Shoals, Arkansas owes the Internal Revenue Service (IRS) big bucks, but the amount of money owed seems to be up for debate.
“Mayor Bruce Powell says the city doesn’t know the exact figure owed for funds not paid on employee payroll withholding. The money, according to Powell, has been withheld from employee paychecks, but not forwarded to the IRS, and the city is awaiting a report from the revenue service of the U.S. federal government,” writes Josh Dooley of The Baxter Bulletin.
At the same time, there was an accountant hired to check the city’s financial records and get the city books in order. According to Dooley, the accountant gave “city council and mayor an estimated figure Thursday night, according to council member Phil Friese. [He] says the city owes the IRS in excess of $90,000, and added the mayor is hiding the truth about the matter.” This figure does not include penalties, interest or other fees.
According to the mayor, everyone agreed to wait for the IRS letter to arrive so they could have an exact picture of what they owed, as opposed to estimating numbers and figures.
“Earlier this year, the city council voted to go around the mayor and the city treasurer to hire Kim Williams to look at Bull Shoals’ financial records. Williams, who now holds an accounting degree and a forensic accounting certificate, reports directly to the council rather than Powell. Council members have complained in the past that Powell does not share information in a timely fashion and sometimes simply ignores their requests for information,” wrote Dooley.
But city council members disagree, and everyone seems to have their own story about the amount and source of the city’s IRS debt. According to some, the city has been contacted several times about the debts, but the letters were destroyed.
One thing seems to be clear, Bull Shoals got behind on their bills.
Like Bull Shoals, many employers fail to withhold payroll taxes and get into trouble because of it. Some people choose to spend the money because they are experiencing tough times in their business, and others forget about withholding all together. If you or someone you know is in trouble with the IRS for failing to pay payroll taxes on time, it is important to call an expert tax resolution lawyer right away. The tax resolution attorneys at U.S. Tax Shield can help you today.