Delta community reaches payment settlement with IRS

by Associated Press

Published: February 10,2012

Tags: arrears, federal government, municipal government, payment, settlement, taxes

METCALFE — The Internal Revenue Service and the town of Metcalfe have agreed on a monthly payment plan to erase a tax debt.

The Delta Democrat Times reports the board of aldermen approved a repayment plan this week of $350 a month.

Officials said the town didn’t pay taxes on town employees for 10 years from 1999-2009. The figure has continued to grow because of interest and penalties.

Town attorney Bennie L. Richard says the town owes more than $500,000.

Richard says the payments will begin in March, for a two-year period at which the IRS will then re-evaluate the town’s financial situation.

“We are at point where the IRS felt that they can make an accurate snapshot of the town’s finances, and we must fulfill our monthly obligation for two years. This will put the town in a position to repay the amount owed after several years,” he said.

The town is suing former mayor Shirley Allen, former town clerk Brenda Gibbs and several former and current aldermen who served in whole, or part, between 1999-2009, in an effort to recoup money through their bonding agent — the Ohio Casualty Company.

If successful, Richard has said the money would be used to pay off the IRS debt.

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