JELLICO - The Internal Revenue Service has placed a federal tax lien against the town of Jellico.
In a July 9 certified letter, the Knoxville office of the IRS informed the town that a lien had been filed with the Campbell County Register of Deeds. The town owes $161,740.32 for more than a year of unpaid payroll taxes.
The total includes penalties and interest for the overdue amount.
“There is a lien in favor of the United States on all property and rights to property belonging to this taxpayer [Jellico] for the amount of these taxes, and additional penalties, interest and costs that may accrue,” the notice said.
Until recently, the town has been making small payments every week on the amount, said Jellico Mayor Les Stiers. The payments ceased because the town could no longer afford to pay $2,000 per week.
Stiers said he didn’t know there were any taxes owed to the IRS until after the resignation of former town recorder, Linda Douglas, on Dec. 4, 2012.
“We were never told we owed this by the city recorder,” he said.
According to the IRS, payroll taxes haven’t been paid since the last quarter of 2011.
Stiers filed an appeal and asked that the town be allowed to pay the balance off in installments. If the request is denied, the IRS would have authority to seize the town’s assets and begin selling them to satisfy the debt.
See more details in the next edition of the LaFollette Press.