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Walworth board authorizes police inquiry after discovery of unpaid payroll withholdings
Summary
Financial consultant reported that IRS Form 941 filings from Q4 2022 through Q4 2025 were not filed and roughly $242,799.11 in withheld payroll taxes went unpaid; the Village Board voted to allow the police to investigate and to meet with the village attorney.
President Louise Czaja convened the Village of Walworth Board on May 11, 2026, where Financial Consultant Renee Nutt reported that quarterly IRS Form 941 payroll tax filings for Q4 2022 through Q4 2025 were not submitted and that approximately $242,799.11 in withheld payroll taxes were unpaid.
Nutt summarized audit-related concerns and prior administrative failures that have produced overdue taxes, delinquent interest and possible negligence penalties. Board members and staff — some of whom are village residents — voiced concern about accountability and the fiscal impact on local budgets.
Police Chief Ryan Milligan asked the board to be transparent about findings and financials. In response, the board approved a motion, carried unanimously, to allow the police department to investigate the potential misconduct in office by the prior Clerk/Treasurer and to hold a special meeting with the village attorney to determine next steps. The motion does not itself determine culpability; it authorizes investigation and legal consultation.
Clerk/Treasurer Kellie Thelen told the board the village has received a draft 2022 audit and that auditors will be on-site the week of June 8, 2026 to complete 2023 fieldwork. The clerk’s office is preparing documentation to speed the audit process and to assist any reviews resulting from the police inquiry.
The board did not vote in this meeting on disciplinary or contractual changes beyond authorizing the investigation. Further decisions, potential repayment plans, or legal actions were not decided and will depend on audit findings and legal counsel advice.
