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Interim administrator reports expected refunds after IRS appeal work on past filings
Summary
Interim county administration told the council that appeals work led by the county92s auditors may produce refunds for previously assessed IRS penalties; payments already made for 2017 and 2019 could be returned and several other assessments appear to have been or will be waived, according to the administrator and the auditors' tax advocate.
Interim county administration provided an update on the county92s long-running IRS issue, saying the county92s auditors have pursued appeals that may return previously paid penalties with interest and lead to waivers of other assessed penalties.
The interim administrator said Mauldin & Jenkins, the county92s auditors, handled the appeal work and obtained assistance from an IRS tax advocate. For tax year 2017 the county previously paid a penalty the administrator reported as $357,740; Mauldin & Jenkins has informed the county that an appeal has been successful and the county should receive a refund with interest of about $400,000. The administrator said a similar outcome is expected for tax year 2019, for which the county had paid a penalty reported in the meeting as $370,710; the tax advocate told the auditors it would be "surprising" if that appeal were not successful.
The administrator said a 2020 assessment was not paid and had grown over time; that assessment is under appeal and an advocate has been assigned and the county expects the assessment to be waived. He reported that assessments for 2021 and 2022 have been or will be waived based on information from Mauldin & Jenkins and a written notice from the IRS for 2022.
If the refunds and waivers occur as described, the administrator said the county expects to recoup the amounts it had paid with interest. Council members thanked the interim administrator for the work and for coordinating with auditors; no formal vote was taken on the IRS matters at the meeting.
