IRS audit finds problems with taxes in Nitro, WV - WOWK 13 Charleston, Huntington WV News, Weather, Sports

IRS audit finds problems with taxes in Nitro, WV

Posted: Updated:
Nitro city hall. Nitro city hall.
  • Most Popular StoriesMost Popular StoriesMore>>

  • Department of Health Alleges Unsafe Practices at McMechen Pain Management Clinic

    Department of Health Alleges Unsafe Practices at McMechen Pain Management Clinic

    Tuesday, July 22 2014 4:20 PM EDT2014-07-22 20:20:59 GMT
    The Ohio Department of Health and the West Virginia Department of Health are encouraging patients of a McMechen pain management clinic to talk with their primary care physician about testing for some infectious diseases following an investigation of the facility by the West Virginia Bureau for Public Health.
    The Ohio Department of Health and the West Virginia Department of Health are encouraging patients of a McMechen pain management clinic to talk with their primary care physician about testing for some infectious diseases following an investigation of the facility by the West Virginia Bureau for Public Health.
  • UPDATE: Man shot during fight on Charleston's east end

    UPDATE: Man shot during fight on Charleston's east end

    Tuesday, July 22 2014 1:40 PM EDT2014-07-22 17:40:45 GMT
    A man was shot in the hand during a robbery on Charleston's east end on July 22 at about 10:30 a.m.
    A man was shot in the hand during a robbery on Charleston's east end on July 22 at about 10:30 a.m.
  • UPDATE: Groups working to move Dirty Girl Mud Run forward

    UPDATE: Groups working to move Dirty Girl Mud Run forward

    Tuesday, July 22 2014 11:33 AM EDT2014-07-22 15:33:19 GMT
    The Dirty Girl Mud Run was a hit last year but now there are questions and controversy.
    The Dirty Girl Mud Run was a hit last year but now there are questions and controversy.
Nitro, WV -

Almost $12,000 in penalties and taxes had to be paid by the city of Nitro, WV following an Internal Revenue Service audit.

"The reason they came in for an audit was we had a fire department individual who was paid as a fireman and also got a 1099 as the pool manager," said treasurer John Young.

A city employee working as a contractor for the city in his off hours prompted tax officials to take a closer look. They found other problems too. The penalties and taxes were only for 2011.

"They could have audited us for 2012 and 2013 and found the same things it has been done this way since I came," Young said.

Auditors found numerous employees that were listed as contractors that should have been considered city workers. Those positions included janitors, a library worker, the city attorney, judge and prosecutor.

Also the IRS said only clothing with a city logo could be included in the clothing allowances for employees. Plain pants would be considered a fringe benefit and needed to be added to pay checks and taxed.

Young said since the audit, the city has taken action to correct the mistakes.  

"We made all of these people employees. We changed our clothing allowance so that it is done properly. The auditor gave me some other tips and things that I should do. They just wanted us doing it right from here forward," Young said.

Young added that even after paying the penalties and taxes the city is still finishing the year with a budget surplus.