Bartholomew County working to sort out issues with IRS

Bartholomew County authorities are hiring an accounting and legal firm to help sort out a problem with the IRS.

The County Commissioners agreed yesterday morning to contract with Ice Miller LLP to sort out a problem that has dragged on for more than six years.

Commissioners President Larry Kleinhenz said that the county has an outstanding issue with the IRS dating back to 2018 amounting to more more than $300,000.  He said the IRS is taking funds from the county’s withheld income tax deposits and applying them to a penalty, and began diverting the funds without notice. The supposed penalty has caused late fees for non-payment of current withholding due to the funds being re-routed.

County Auditor Pia O’Conner said it isn’t clear how much the county owes or for what.

Kleinhenz said other counties have had similar issues and after meeting with the state board of accounts, Bartholomew County officials believe that proper procedures were followed. He also said county officials are under a non-disclosure agreement and can’t say much about the situation.

The goal of hiring the firm is to get the penalties negotiated and reduced.