The International Revenue Service took almost $47,000 in interest and penalty fees off of Yazoo City’s payment in connection with its unpaid taxes to the federal government.
Marshall Conico, who is an accountant assisting the city with its finances, told the Board of Mayor and Aldermen that the check to Uncle Sam is now in the mail.
The city of Yazoo City failed to pay almost $150K in taxes to the federal government, resulting in the IRS placing a federal tax lien against the city.
The city of Yazoo City owed the federal government $148,501.46.
The Department of Treasury filed the tax lien against the city on April 16 in the Yazoo County Chancery Court for the tax period ending June 30, 2014.
However, Conico announced that the IRS recently knocked a significant amount off on the city’s interest and penalty fees.
There was about $55K in penalty and interest fees, but the IRS decreased it to $8,461.
That is $46,539 in savings.
Conico said once the check clears, the IRS will rescind the federal tax lien.
“We need to get it in the docket, get it paid this week, get this behind us and move forward,” Conico told the board during its open meeting last Thursday.
In other financial news:
• Conico suggested that the board begin its upcoming budget preparation. With a public hearing approaching in August, the city’s fiscal budget must be in place by Sept. 15.