IRS audit slaps county for back taxes, penalty fees

By Leah Wankum, Editor

Good intentions, followed by misunderstanding and mistakes, have led to the Ray County Clerk’s office making back tax and penalty payments totaling $27,000 or more following an audit by the Internal Revenue Service.

The good intentions stem from a plan to boost the income of sheriff’s deputies by providing allowances for uniforms and meals.

The mistakes arose because tax forms were issued improperly to the deputies and not at all to some contractors who did work for the county. The IRS investigation of improper tax forms given to the deputies led to the discovery that certain contractors received no forms at all.

Ray County Clerk Glenda Powell provided the Richmond News with incomplete results of the IRS audit; portions of it are pending.

IRS auditor Dena Casey discovered during her audit that the county clerk’s office failed to issue 1099 forms to at least 29 contractors in 2015. Powell said this failure occurred because of an oversight; her office simply didn’t catch those vendors who needed to receive tax forms.

The complete story is in the Tuesday, April 25, 2017 Richmond News.

Click here for our E-edition and read the rest of the story.

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