MARSHALLTOWN, Iowa (AP) - Marshalltown Schools has paid nearly $603,000 in IRS penalties after a district employee failed to properly process payroll tax deposits for 14 months.
The Marshalltown Times-Republican reports that former payroll tax specialist Allison Meyer resigned in June after the issue came to light. Officials say the district was required to make payroll tax deposits the day after employees were paid, but that didn’t happen.
Meyer told the newspaper in a statement that she “followed instruction as it was given to me” in making the deposits from April 2017 through June.
Officials say the $602,900 in payments and fines were paid immediately out of the district’s $65 million general fund to avoid further penalties. The district is now seeking a waiver from the IRS to have the penalties reimbursed.
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Information from: Times-Republican, http://www.timesrepublican.com
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