ERWIN TOWNSHIP — Erwin Township hasn’t been up-to-date on paying taxes to the federal government. That was the news township Supervisor Larry Grimsby delivered to the board of trustees Wednesday.
“It was discovered that we’re on the verge, the township is on the verge, of being put into collections by the federal government,” said Grimsby.
Grimsby reassured the board and residents in attendance that, now the township was aware of the problems, the township leaders were taking steps to resolve the issue.
According to Grimsby — who was reading Clerk Vicky Finco’s monthly report as Finco was on vacation — the problem was discovered when Finco called the IRS to clarify whether the township had filed its form 941 payroll taxes for the first quarter of 2015.
Grimsby said, when Finco spoke to an IRS employee, named “Mr. Prince,” she was informed that township actually owed “numerous late fees and penalties.”
Grimsby said the fees and penalties were for the township’s failure to either pay the monthly deposits required for 941 forms and or late filing of the quarterly reports.
According to the clerk’s report — in addition to a penalty of $220 paid on July 8 for the third quarter of 2014 — the township owed $69 for the first quarter of 2012, $1,078 for the second quarter of 2012, $334 for the first quarter of 2013 and $140 for the third quarter of 2013.
The total owed by the township, including the $220 paid in July, was $1,843.
The township also failed to file any reports for 2011, something “that is still under investigation,” according to Finco’s report.
“Mr. Prince” said the large amount owed for the second quarter was because “only one of three monthly required 941 tax deposits was made for the quarter,” Finco’s report said, calling this “a more serious offense.”
Finco’s report said the IRS confirmed the township had received notices of the fees for the past three years and “Mr. Prince” advised the township to work on constructing the reports the IRS hadn’t received.
Grimsby said at the meeting he instructed Finco to pay the money immediately, rather than waiting for board approval, to avoid further issues.
In response to questions from the audience, Grimsby said the fee notices had been sent to the former clerk and the township had the money to pay what they were supposed to.
In other business:
— The board authorized Grimsby to approve L-4029 and L-4034 forms, which deal with existing millages at the county level.
— The board agreed to consolidate the payments it makes to members of its board of review and planning commission to reduce paperwork.
— Authorized Finco to travel to Marquette on Sept. 9 and 10 for a conference on training for new clerks.
— Approved paying $14 for Finco and another person to enter data into Quickbooks to complete the electronic version of the township’s financial record, with a cap at $1,500. Grimsby said he wouldn’t be surprised if the job took 100 hours.
— Grimsby informed that the request to the state of Michigan for a 60-day extension for the township’s audit had been submitted and based on conversations he had with state officials, he didn’t expect an issue with the request.
— Grimsby also said the accident fund-workers compensation audit had been submitted to Lansing.