Among the expenses approved by Parker City Council at their March 15 meeting was another tax liability. The board approved a payment of $48,230.12 to the Internal Revenue Service.
Acting City Manager Amy Putnam said the liability was due to incorrect numbers on an IRS Form 941 dated September 30, 2021. The tax owed was $45,961.58, while the remainder of the payment was for penalties and interest.
Some council members expressed disgust that the city was hit with yet another IRS bill.
“This is the second liability, interest and penalties that we have paid,” board member Randy Hartless said.
Hartless was referring to a $22,140 payment to the Internal Revenue Service approved by the Board at its Feb. 15 meeting. Putnam said it was an unpaid fine from December 2019.
Putnam said the city did not properly file its W-2s and the issue was not corrected in a timely manner. She said the penalty was a late penalty. She said she was sure the IRS had sent out earlier notices about it, but she and staff had been unable to locate them.
At the time, Putnam responded to a question from Mayor Karen Bonds that it could have been avoided if the city had a chief financial officer.
As for the September error, Putnam said the forms were filed at a time when there was a lot of confusion at City Hall. This was around the time the investigation into the embezzlement allegations began. This led to the firing of a city employee and the placing of city manager Lori Wedemeyer on paid administrative leave.
As of March 19, the investigation was still ongoing and no criminal charges had been announced.
Noting that this isn’t the city’s first tax liability with the IRS, council member Rey De Leon asked, “Is there anything else to come?” »
Putnam said she and staff are reviewing city records to see if there are any other possible penalties, interest or other payments that the city may be liable for in regards to her taxes.