NWACC appeals tax penalty for late payments
by June 15, 2012 5:44 pm 140 views
NorthWest Arkansas Community College has again admitted to three recent late payments to the Internal Revenue Service, saying it will appeal the fines of approximately $5,500.
Dr. Becky Paneitz, president of the college, released this statement Friday (June 15):
“We sincerely regret that three of our recent payroll tax payments to the Internal Revenue Service were posted after the deadline. We are appealing the penalties the IRS assessed because NWACC disputes the number of days for which these penalties could have been assessed. While we remain hopeful that the penalties will be reduced or waived, we also recognize that this issue must be addressed immediately and permanently. There is no reason that NWACC should not process these payments properly and in a timely manner. As President of NorthWest Community College, I am ultimately responsible for all financial matters, including financial reporting, to our public and to our dedicated Board of Trustees.”
This recent gaffe in filings comes on the heels of five other incidents of late payments dating back to 2009. Between 2009 and October 2011, the college was fined nearly $70,000 for late payments.
Three late tax payments to the IRS in 2011 resulted in a $26,760 fine, which the college paid in June of last year. The college paid another $2,375 penalty to the state for late withholding wage taxes due October 2010.
In reconciling differences in payroll the community college recapped the three recent late payments as follows::
June 30, 2011 – late payment charge of $5
Dec. 31, 2011 – late penalty charge of $425
March 31, 2012 – “potential penalty” of $5,103 regarding late payment which NWACC has appealed
“We take these mistakes very seriously and are reviewing our processes again to make certain this problem is resolved. While there were recent changes made in our processes and procedures, the college will once again revisit this specific area and further update the NWACC Board of Trustees at the July 2012, retreat addressing specific corrective actions,” said Alex Vasquez, chairman of board for NWACC.