GEORGETOWN --A city-funded group paid thousands of dollars in late payroll taxes because of bad bookkeeping, an audit has found.
Georgetown Renaissance Inc., a revitalization group that helps downtown businesses and residents, had paid $11,026.62 last year to the U.S. Treasury in late taxes and fees, according to a bank statement.
The audit, conducted by Kelley Galloway & Co., found that the payroll taxes were filed late for 2005 through 2007, resulting "in substantial penalties and interest."
Kitty Dougoud, who became director of the organization last August, said some quarterly filings of payroll taxes with the Internal Revenue Service actually were overpaid, but the correct forms did not accompany the payments.
The audit recommended that "more care be exercised to ensure the timely filing of all payroll tax returns."
The delinquent taxes weren't a result of intentional wrongdoing, but taxes were filed incorrectly, said Andrew Green, a Georgetown Renaissance Board member.
Mayor Karen Tingle-Sames said the audit was presented to the council last week, but the council has not decided what action to take, if any.
Dougoud said Georgetown Renaissance Inc. has asked the IRS to apply some of the overpayments toward the delinquent taxes.
"It was very careless bookkeeping and in turn, it caused a lot of work," Dougoud said. The organization had to use about one-third of its annual funds from the city to pay the IRS, she said.
The group receives $40,000 a year from the city and $7,500 from Scott County.
The city withheld its latest installment of $15,000 pending completion of the audit, but released the money last week, Dougoud said.
Green said he plans to propose to the board next month that a certified public accountant handle the finances of the non-profit organization.
Source : http://www.kentucky.com/
Georgetown Renaissance Inc., a revitalization group that helps downtown businesses and residents, had paid $11,026.62 last year to the U.S. Treasury in late taxes and fees, according to a bank statement.
The audit, conducted by Kelley Galloway & Co., found that the payroll taxes were filed late for 2005 through 2007, resulting "in substantial penalties and interest."
Kitty Dougoud, who became director of the organization last August, said some quarterly filings of payroll taxes with the Internal Revenue Service actually were overpaid, but the correct forms did not accompany the payments.
The audit recommended that "more care be exercised to ensure the timely filing of all payroll tax returns."
The delinquent taxes weren't a result of intentional wrongdoing, but taxes were filed incorrectly, said Andrew Green, a Georgetown Renaissance Board member.
Mayor Karen Tingle-Sames said the audit was presented to the council last week, but the council has not decided what action to take, if any.
Dougoud said Georgetown Renaissance Inc. has asked the IRS to apply some of the overpayments toward the delinquent taxes.
"It was very careless bookkeeping and in turn, it caused a lot of work," Dougoud said. The organization had to use about one-third of its annual funds from the city to pay the IRS, she said.
The group receives $40,000 a year from the city and $7,500 from Scott County.
The city withheld its latest installment of $15,000 pending completion of the audit, but released the money last week, Dougoud said.
Green said he plans to propose to the board next month that a certified public accountant handle the finances of the non-profit organization.
Source : http://www.kentucky.com/
No comments:
Post a Comment