Lake County Schools board approves budget amendments, staff says IRS abatement has been requested

The Lake County Schools Board of Education voted June 8 to approve budget amendments moving funds within the general-purpose (141) and cafeteria (143) accounts, and staff said they have applied to the IRS for an abatement of previously unpaid quarterly taxes and related penalties.

The vote clears technical re‑coding and balancing entries needed to close the fiscal year. Amy, the staff member who presented the amendments, told the board that the district discovered missed quarterly payroll tax filings going back prior to 2019 and that penalties and interest had accrued. She said the district engaged the county attorney and a tax attorney to pursue an abatement and that the attorney advised abatements were typically granted in cases like theirs.

"We started at 2019," Amy said, describing how the district is addressing prior missed payments and the penalties that followed. She said the district has applied for an abatement and "I have not been given word whether or not the IRS has accepted that." Amy also described the difficulty of communicating with the IRS by phone and why the district sought attorney help: "The only way the IRS communicates with us is with a phone or fax or mail." Board members noted a small packet typo in object 5100 that staff corrected before the vote.

Board member Vivian moved to approve the budget amendments; Jody seconded the motion. The chair called a roll call and the motion carried. The board discussion made clear that the abatement application and any attorney fees would be processed through the county commission as part of year-end closing.

What happens next: the district will await the IRS response to the abatement application and will continue coordination with the county commission on any fees tied to legal services and final bookkeeping for the fiscal year.