Town pays $80,000 for late taxes
by JESSICA L. FINCH Associate Editor

A check for $83,758.61 has been sent to the IRS for Amherst's overdue taxes, and penalties, a mistake that still can't be explained.

Comptroller Frank Belliotti said he sent the amount because the IRS had threatened to put a hold on the town's bank account to get the money. He said the town will request a refund for a large portion of the money.

The IRS is claiming the issue of failing to pay taxes started back in 2003 in the amount of $52,000. There were also lack of payments in 2004 for $8,000 and in 2005 for $3,000. With penalties and late fees the amount rose to more than $80,000 when Belliotti sent the check at the end of April 2007.

"I don't know how it happened in the first place," Belliotti said. "There is no benefit to arguing with the IRS. We paid it and now we will try and prove they were wrong. Holding back doesn't make any sense."

Between former comptroller Maureen Cilano, who was in the position in 2003 and interim comptroller David Hanley, who served from April to August 2006, the 2003 taxes were never finalized with the IRS.

Belliotti said the documents show $9,000 was the initial amount not paid and he doesn't understand why the IRS is claiming $52,000.

He added that he did not see the four quarterly 941 forms, covering employee withholding taxes, from 2003 until last month. He found the forms, signed and dated on Aug. 11, 2006, by Supervisor Satish Mohan and Darlene Carroll supervising accountant, in a folder in the office.

Belliotti started as comptroller on Aug. 9 and was never consulted about the forms, he said.

Hanley said he started after the initial issue and left before it was finalized. When he was assigned as interim comptroller in 2003 the issue was brought to his attention and he started to research the problem, he said.

Belliotti said he has the originals of those forms.

Communications between Belliotti, Carroll and Mohan have been exchanged in the last month, each claiming fault in the prior administration, and/or each other.

Belliotti said that with a $110 million budget this unexpected cost won't have a huge impact on the 2007 budget. He added he doesn't know when to expect a reply from the IRS about the town's claim that $52,000 was the wrong amount.

Request for comment from Mohan's office was not returned prior to press time.

The Comptroller's Department had been under review with the changes in the comptroller position, the 2006 budget issues and other financing concerns. Upon the request of the Town Board, the the Ad Hoc Finance Committee reviewed the Comptroller's Department. Hanley presented its findings at Monday's work session.

The group has recommended that a budget manager position be created. According to the committee's organization chart the position could be created with the current staff.

"Things happen too many times at the last minute. This person would create and monitor the budget on a regular basis," Hanley said.

Belliotti said although he agrees with most of the committee's recommendations he would suggest additional funding be budgeted for a manager. He does not believe it would be possible with the current staff.

The Ad Hoc Committee also recommends operational audits of every town department, as well as evaluations of employees.

Committee member Thomas Sweeney requested a formal response from the Town Board, adding that too many times reports are submitted to the board and "go into oblivion."

He estimated 120 hours went into the report. The committee included retired and current business professionals.