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Thursday, September 14, 2006

Fine reduced in Natick tax mishap

NATICK

The Internal Revenue Service has agreed to reduce the fine Natick was charged after an employee in the comptroller’s office forgot to send more $166,000 in payroll taxes to the agency last year.

Town Administrator Phil Lemnios says he’s pleased the amount was cut back but still isn’t satisfied with the amount owed by the town.

The error took place in April 2005, when an employee forgot to send the taxes on time. The mistake was discovered a few months later and the money was sent.

After the error occurred, the IRS told the town to pay $42,000 in interest and penalties but the town appealed saying it was too high.

The town contended that the IRS credited the taxes to the wrong quarter and should not have been charged so much in fines and interest.

The government cut the amount by $11,700, leaving the town with a $30,300 bill. “We’re happy it was reduced but we’re still evaluating what our next steps are,’’ Lemnios said. “We’re not satisfied with it. This was a singular incident.’’

-- Jennifer Fenn Lefferts

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