Murfreesboro owes IRS

Published 5:34 pm Friday, September 12, 2008

MURFREESBORO—The Murfreesboro Town Council is seeking to waive a penalty placed on the town by the Internal Revenue Service (IRS) for back employee taxes.

At Tuesday’s town council meeting, Town Administrator Cathy Davison told council that she had received a notice from the IRS that the August 24, 2007 employee tax payment had not been processed by the former town clerk.

Davison said the town owed $6,067.81 in taxes plus penalties and interest. She said $631.99 of that amount were in penalties and interest.

“I about came unglued,” said Davison to the council, referencing her reaction upon receiving the IRS notice.

Davison said she had been informed by the IRS, as well as the former town clerk, that all the taxes that were not reported had been paid.

In 2007, the town received two liens on their bank account for employee taxes totaling $10,041.22, including penalties and interest. The town received a notice for back taxes in August 2007 and two additional notices in October of that year as well.

That amount has been paid to the IRS.

In a Thursday interview with the Roanoke-Chowan News-Herald, Davison said because those taxes were not taken out they are still in the salaries and wages budget and that is where the back taxes will be paid from.

“The only thing additional is the penalties and interest, which council directed me to see if the IRS will waive,” said Davison.

Davison said the town will be paying the back taxes to the IRS.

The employment of the former finance officer and town clerk Stephanny Marshall was terminated by the town council on October 24, 2007.