IRS returns $31,000 to county

Published 5:31 pm Wednesday, March 25, 2020

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Charlotte County officials learned Wednesday, March 18 that a $31,000 penalty payment made to the Internal Revenue Service (IRS) in relation to a filing error has been waived, and the funds will be returned.

According to County Administrator Dan Witt, the IRS will return the $31,000 payment to the county along with $465.53 in interest.

The penalty payment stems from a Form 1095C filing error.

According to Witt, under the Affordable Care Act, the county is required to file Form 1095C with the  IRS, and the deadline was missed in 2017.

This filing was for the Charlotte County Public School System (CCPS).

“The county files for both the county and school employees,” Witt said. “The deadline was missed for the electronic filing with the IRS, and the schools were randomly drawn and assessed a penalty of $100 per employee.

Witt said CCPS employees were issued their 1095C forms on time.

“There was an error on the part of the staff in filing the Affordable Care Act (ACA) health paperwork to the IRS, and we have appealed that, and that appeal was denied, and rather than pay interest, we’re going to pay the expenses.” Witt said during a November 13 meeting of the board of supervisors.

County officials also reached out to Congressman Denver Riggleman seeking his help with the penalty.

“Thanks to Congressman Riggleman and his office for sending a letter on behalf of the county and to the IRS person(s) who made this decision,” Witt said. “It was much appreciated by the board of supervisors, my staff, and me.”