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PHIPPSBURG

Residents will be asked at a special town meeting Jan. 9 to approve spending $40,000 in surplus funds to fix errors in the way the town processed payroll taxes.

Selectmen scheduled the meeting Wednesday.

Residents will decide if they want to appropriate money from surplus to cover FICA and Medicaid withholding taxes and to pay IRS interest and penalties. Selectmen and the Budget Committee both suggest a sum of $40,000.

The meeting, at Phippsburg Elementary School, begins at 6 p.m.

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Administrators have said the town will be assessed penalties and interest on improperly withheld employment taxes.

Town Administrator Mike Young said the total due from the town to the IRS is $35,577. The town would pay the debts and then collect the treasurer’s share through a time payment plan, Young said.

Selectman Everett Perkins said Monday he is confident Wallace did nothing wrong.

“This is clearly nothing more than a mistake,” Perkins said. “I asked her point-blank, and she answered me point-blank.”

lgrard@timesrecord.com



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