Payroll taxes for fiscal 2018 were improperly filed, triggering a $700K IRS issue. The problem surfaced only after exiting state financial oversight.
Roots traced to past financial mismanagement and a major corruption scandal.
Former Rep. Michael DiMassa was arrested in 2021 for fraud.
Mayor Dorinda Borer said city is better positioned to respond now. A tax attorney has been hired; city plans to seek forgiven penalties and payment arrangements.
The full amount has been reserved from the contingency fund. Officials optimistic taxpayers won’t be affected immediately.
Council members feel confident in payment flexibility: IRS likely to allow installments.
A dedicated tax collector is helping residents understand bills and payment options, aiming to prevent future delinquencies
A dedicated tax collector is helping residents understand bills and payment options, aiming to prevent future delinquencies.
Failure to pay payroll taxes impacts not only city finances, but also faith in local government. “It’s time to restore accountability,” say officials.