Brighton faces day of reckoning on IRS debt

The city of Brighton knew that a day of reckoning would come regarding its nearly $1 million debt to the Internal Revenue Service for unpaid payroll taxes.

That day came Monday, when the IRS gave the West Jefferson community notice that it had placed a levy, or hold, on the city's bank account, according to Mayor Barbara Watkins.

City officials were scheduled to meet today with the IRS to discuss the situation.

Attending the meeting will be Watkins; Councilwoman Annie Woods, who chairs the city council's finance committee; an accountant who is working for the city; and perhaps some other council members.

"We are going to try to get it settled once and for all," Watkins said. "I inherited this, but I'm not shirking the responsibilities. I knew this was going to come up when I took office, and we're going to handle it. We are handling it."

Prior to a meeting Tuesday night of the Brighton City Council, Watkins put the figure owed to the IRS -- for unpaid taxes, interest and penalties -- at about $800,000. Former Mayor Angelo Hinkle put the figure at about $1 million when he announced in April that the debt existed.

Brighton discovered in 2011 that taxes had been withheld?from the paychecks of city employees for about seven years, but that the money had not been sent to the IRS. The discrepancy was found by city clerk Hazel Williams, and the city hired forensic accountants to begin to assess the damage.

Hinkle said he had no idea what happened to the money or who was responsible for the non-payment, which began during the administration of Mayor Eddie Cooper.

In April, Hinkle blamed LaSonya Walker, who served as city clerk from 2005 to 2009. Walker, in turn, blamed Hinkle. In any case, it is Watkins and the current city council to clean up the mess, beginning with the meeting with the IRS.

The mayor, who took office in November, said her approach to the tax people will be a simple one. "I'm just going to be honest with them," she said. "They already know the situation. Because nobody (with the city) in the past took the time to go and sit down and talk with them, we are where we are."

Watkins also said that, contrary to a report by a local TV station Monday, city hall is not closed and no employees have been laid off. "I don't know who started the rumor, but as you see, we're still in business," she said. "We did not shut down city hall. We are still operating."

During the council session, Watkins tried to calm the fears of Brighton residents. "I know that most of you are here because you heard about what happened, and I just want the citizens to know that it is well," she said. "We inherited this, but we are not going to let this turn us around. We are going to face it, and we're going to work it out. I guarantee you, with God's help, we are going to come out victorious."

In addition to the IRS debt, Brighton in 2011 defaulted on $1.12 million in warrants issued in 2003 to buy police cars and a garbage truck.?

Source: http://blog.al.com/spotnews/2012/12/brighton_faces_day_of_reckonin.html

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