IRS places Federal Tax Lien on school system

The Internal Revenue Service has placed a federal tax lien on the Morgan County School System’s property because of $700,000 in unpaid taxes from the first quarter of 2015.  With penalties and interest, the amount owed by the school system to the IRS is over $1.1 million.

“While we are disappointed that the IRS chose to place a lien on the school system, this course of action is a routine action by IRS in resolving disputes to protect any potential IRS interest. The school system has already filed an objection to the penalties and has already filed a request for penalty abatement,” explained James Woodard, superintendent of schools. “A lien means a public record is created that the IRS intends to protect its interest, if any, in regards to any unpaid interest and penalties.  The filing of a lien also allows the school system to proceed with a Request for a Collection Due Process or Equivalent Hearing – which has already occurred.  Currently Morgan County School System is waiting to hear from IRS on the status of the appeal.”

According to Woodard, an oversight was made when filing taxes in 2015, during a transition of finance personnel.

“Our stance has been that we believe the first penalty was a non-intentional error on our part and we believe we have reasonable cause for the IRS to waive the penalties and any associated interest.  We believe the remaining penalties are not our fault and we are using the hearing/appeal process to verify that our normal routines and process are followed.  We have always intended and continue to pay our taxes and file appropriate reports.”

 

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