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IRS partially reimburses Vidalia The Town of Vidalia has been reimbursed about 80 percent of the penalties and interest it paid the Internal Revenue Service last year to settle a payroll tax bill.
Mayor Hyram Copeland, responding to a question by alderman Jon Betts about the matter at the Vidalia Town Council meeting Tuesday night, said he's hoping the remaining 20 percent will be refunded as well.
Copeland said Wednesday morning that $175,000 of the $210,000 in fines and penalties has been reimbursed.
Last September, the IRS filed a lien against the city to collect a payroll tax bill of $635,412.76 dating back to 2006. Copeland said the town immediately paid the bill, noting that he was unaware the money was due until the lien was filed.
Former Vidalia City Manger Ken Walker said afterward that he took "full responsibility" for the matter, blaming the failure to timely pay the IRS on "a series of errors."
At Tuesday's meeting, Copeland pledged that "this will never happen again" as long as he is mayor.
"I can assure you of that," he said.
He said interim city manager Elizabeth Tanner "is doing a good job" helping oversee the city's finances.
Copeland said the town's finances have stabilized after financial losses due to the 2011 flood and the 2012 drought resulted in the lay-off of about three dozen town employees.
Flood expenses included temporary levee protection of the Vidalia riverfront during the flood and recovery expenses afterward. In 2012, the town suffered the loss of royalty revenue from the Vidalia Hydroelectric Plant due to low river stages, which affected the production of electricity.
Losses from both sources over the past two years total around $6 to $7 million, he said.
Copeland said the town now employs 129, down from 164 at the beginning of last year. |
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