Navassa’s IRS woes continue. A January 2 notice from the agency advised the Town of Navassa of a monetary penalty for failure to file W-2 forms. The penalty totaled nearly $35,000. The town has until January 23, 2012 to file an explanation as to why the IRS should not charge, and to request the IRS to remove or reduce any of the penalties the IRS has charged. The penalty is for the tax period ending December 31, 2008.
The mistake was discovered early last year when an employee’s Social Security statement showed no contributions for 2008. The employee notified town administrator Claudia Bray, who then brought the matter to the attention of the Navassa town council. The council then began an investigation. While checking with the IRS, Bray discovered former Town Clerk Charlena Alston never sent the W-2 forms to the IRS and Social Security Administration.
This is not the first time Navassa has had conflicts with the IRS. On April 12, 2010, Navassa was assessed a penalty of $4,461 because the amount shown on the W-2 forms did not match the figure shown on the town’s employment tax returns for the tax period ending December 31, 2007.
Alston was terminated in November 2011 because of issues with her job performance. At the December 23, 2011 recess meeting, Alston was given back her position as town clerk, even though a motion was passed at the December 16 meeting to freeze all hiring. Alston will also be given back pay for the time she was not employed with the Town of Navassa.

by Mike Leggett  mike@theLNHR.com

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