Posted on 11/09/2014 10:15:59 AM PST by John W
GARY — The Internal Revenue Service is seeking $6.78 million in unpaid payroll taxes from Gary Community School Corp.
The IRS has filed two liens in the Lake County Recorder’s Office against the school district. One lien, filed Sept. 3, seeks payment of $5,270,467 for payroll taxes in 2013. The other lien, filed June 24, says the district owes $1,514,529 for part of 2012 and 2013.
IRS spokesman Luis Garcia said the agency doesn’t comment on specific taxpayers.
“The public document has to speak for itself,” he said.
The documents state the IRS is giving notice that taxes, including interest and penalties, have been assessed against Gary Community School Corp. and Michael Washington, its interim chief financial officer.
“We have made a demand for payment of this liability, but it remains unpaid,” the lien notice states.
Gary attorney Robert Lewis said the district plans to establish payment plans for its debts.
“We have a number of creditors, like most people. We are working diligently to get these taken care of,” he said.
(Excerpt) Read more at posttrib.chicagotribune.com ...
Maybe they ought to call the lawyers who advertise that they can settle IRS debts, for pennies on the dollar.
This should be interesting...
Holy-—!
Unpaid payroll taxes, are among the least funny jokes in existence to the IRS. In the case of a business, they’ll come down on you like a ton of bricks and chain your doors shut. Perhaps one warning, then full brutality.
I do not know if I have ever heard of a case of unpaid payroll taxes in the case of a school or other publicly-funded entity. (That I have heard or not heard of such a case is entirely meaningless) But seriously, I can’t recall another instance of this.
I fail to see the problem. They can just raise taxes on the people who paid them to manage this properly to begin with. Raising taxes solves all problem. /s
So they withhold taxes from employees but didn’t remit those payments to the IRS. So where did the money go? Is Gary corrupt???
I think there’s more to this than just catching up with their creditors.
When Chicago runs out of south-side, it has Gary.
Doesn’t pay to get niggardly with the IRS.
Lesson #567,981,995 in the infinite and unending series of how the irresponsible (this school district) shift costs to the responsible (general revenue taxpayers at large.)
Dollar to a donut that there’s some embezzling going on.
There’s at least one obvious factor in this situation that leads me to state - with confidence - that the IRS better not hold it’s breath.
“”So they withhold taxes from employees but didn’t remit those payments to the IRS. So where did the money go?””
I would think the parents would see to it that the School Board is held accountable for seeing that the administration follows the law or fires those responsible.
The district would have had to file the required quarterly tax forms and the employees would have to have received credit for the taxes they paid and credit for their social security earnings. If not, what a mess for the employees; both at income tax time or filing for social security retirement.
ROFLMAO!!! This is Chicago's ugly little sister. For decades, the pollution caused by Gary's electric plants feeding Chicago made an orange-brown haze over northern Indiana.
Is Gary corrupt? Is water wet? Is Obama unpopular on FR?
So the school district is withholding the taxes from employees paychecks but not sending the money to the IRS. Is that it?
Would about have to be per the article.
My brother in law lives in Indiana would agree with you. Gary is the arm pit of Indiana much like Detroit is to Michigan.
And it is not wise to be there if you are white.
Welcome to Detroit!
They could be remitting what they withheld , but not the employer match.
Typical third world hell hole.
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