Penalties, interest paid on Livermore 2019 tax payments | Lewiston Sun Journal - The Bethel Citizen

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LIVERMORE — After an executive session during the Oct. 26 Board of Selectpersons meeting, it was voted to pay the Internal Revenue Service almost $5,871 in federal employer’s taxes, penalties and interest owed from 2019. The payment was submitted electronically Oct. 28.

The payment included $351.38 for the first quarter, $5,123.45 for the second quarter and $395.88 for the fourth quarter.

Questions were emailed Friday to Amy Byron, Livermore’s treasurer after calls had not been returned.

“I will be away from the office until Monday November 2 recovering from surgery. I will have limited availability by email but I will respond as soon as possible,” she replied Friday. No further response was received prior to deadline for the Livermore Falls Advertiser.

Calls Monday, Oct. 26, and Thursday, Oct. 29, to Selectperson Chairman Mark Chretien were not returned.

When asked in an email Friday, Administrative Assistant to the Board of Selectpersons Aaron Miller replied that federal employer’s tax payments for the first, second and fourth quarters of 2019 were not paid on time.

The IRS assesses a 0.5% monthly interest payment for not paying taxes owed by the due date, with penalties based on the net unpaid tax at the beginning of each penalty month following the payment due date for that tax, according to an IRS Account Transcript sent to Livermore and provided by Miller. The penalty applies even if the return was filed on time, it states.

Required by law to charge interest when taxes aren’t paid on time, the IRS calculates interest from the due date of the return until the amount is paid in full, including accrued interest and any penalty charges, the transcript also states.

“I understand that the State of Maine has charged late penalties to the Town in recent years,” Miller wrote in response in his email. “According to the state’s Department of Labor Bureau of Unemployment Compensation, $25 payroll penalties have been charged to the town for: fourth quarter 2016; third quarter 2018; second quarter 2019; first and second quarters for 2020.”

An internal control policy which will address checks and balances of payroll is being worked on, he said.

A call to Tim McMann, IRS Small Business/Self-Employed Division, was not returned.

This article will be updated.

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