Home Accountant W’sport faces $160,000 penalty in 2017 taxes | News, Sports, Jobs

W’sport faces $160,000 penalty in 2017 taxes | News, Sports, Jobs


A municipal forensic financial expert and accountant working for the City of Williamsport has discovered that the city is in the process of civil penalties for $160,000 from the Internal Revenue Service (IRS).

Tracey Rash of Government Finance Solutions recently told the city council’s finance committee about her discovery and other problem areas in the financial paperwork, which she said much of it should be put into digital format as it found it in piles.

“The IRS has not received the 2017 W-2, 1095, and 1094 forms they said they sent,” Rash said.

Rash said he found the documents while checking Old City Hall, which remains closed and boarded up.

“I found an IRS notice on the pile on a desk with penalties for the fourth quarter of 2021 of approximately $12,000,” she says.

After contacting the tax office, she noted that there were three outstanding penalty notices, including one from 2017, which she said had never received a response.

“You are now in a civil penalty phase for $160,000 and out of the appeal process,” Rash said.

Two other outstanding issues with the agency have been resolved, she said.

“Apparently the patient is in critical condition and we are currently triaging,” said Councilman Randall J. Allison.

The Board is considering this evening on its agenda whether to enter into a contract with Government Finance Solutions.

Rash could be paid using the remainder of the former acting CFO’s salary for the year, but councilor Liz Miele, chair of the committee, said she would also like to see a plan for when that funding ends.

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