WINNSBORO – Following an update given by the county’s Interim Administrator Clay Killian concerning the county’s $1.4 million in IRS fines and penalties, council members voted unanimously to appropriate $40,000 to enlist the county’s auditing firm, Mauldin & Jenkins, to assist the county in erasing some of those tax penalties and interest owed to the IRS.
The county accrued the debt from unpaid penalties and interest stemming from late, incorrect and unfiled healthcare tax forms, as well as financial reports, dating back to 2017.
Former Interim Administrator Laura Johnson said the county received notification of those fines and penalties from the IRS in May and June, 2023, and that she paid them those same months. However, the public and county council were not informed about the issue until the Dec. 11, 2023 county council meeting.
Johnson’s contract was not renewed in January 2024.
Killian, who was hired in February, has been actively seeking ways to appeal the penalties in the hopes of canceling or reducing the debt.
“There is an appeals process that we have not taken advantage of yet,” he said. “I’m working with our new auditors. They’ve given us proposals to consider.”
Killian told council members that at least $400,000 of the debt is potentially recoverable. He said Mauldin & Davis has a dedicated legal expert on staff who specializes in appealing IRS debt.
“All she does is track down mostly Affordable Care Act penalties and has a real high success rate getting that back,” Davis said. “Nothing is a given, but we feel pretty good about what we understand.”
