WINNSBORO, S.C. — Fairfield County has paid the IRS over $1 million for late or incorrectly filed annual healthcare and quarterly IRS forms dating back to 2017.
The County Council was made aware of this issue during their regular meeting on Monday, December 11.
Interim County Administrator Laura told News 19 that $1,184,417.11 has already been paid, with an additional $214,133.96 anticipated pending the reception of an outstanding bill.
"We've already paid those because the fees the penalties and interest keep accruing even while we investigate," said Johnson.
"I'm not happy about it because it impacts our taxes, but I can't say I'm terribly surprised either," resident Chris Blackwell said.
Another resident, Donald Holmes, also expressed concern, saying, "That's a lot of money. I don't care how big a community you are or little, that's money that can be used towards us, whether it be roads, infrastructure, or whatever it might be for the benefit of the people."
Johnson revealed that one tax year was successfully appealed, resulting in no penalties for that specific year. However, appeals for other years are still under consideration.
According to Johnson, the former Finance Director, who resigned in February 2023, said she was unaware of issues with the quarterly 941 reports.
The county is now contacting the IRS to determine when notifications regarding late filings were sent.
Addressing the impact on the county's budget, Johnson assured that taxes would not be raised for the current fiscal year. Instead, the county plans to utilize its fund balance to cover the unexpected expenses. The appeal process is also underway, hoping to recover some funds.
To prevent similar issues in the future, Fairfield County is implementing new procedures. This includes saving confirmation copies and signed mail receipts and requesting the IRS to use two contacts—one for the department responsible and another for County Administration.
"We will continue to keep the public and county council informed as we work through this process," said Johnson.
Blackwell and Holmes say it's too little, too late.
"We probably should have had that in place many years ago where this didn't happen and cost us so much to learn that lesson that's for sure," said Blackwell.
"I mean checks and balances. C'mon. we learned that in elementary school. Left side right side, it's gotta balance," said Holmes.