County reviews three IRS audit findings
by JOYANNA LOVE, Banner Staff Writer
Aug 08, 2013 | 1037 views | 0 0 comments | 13 13 recommendations | email to a friend | print
The Bradley County Finance Committee reviewed findings in three operations from a 2010 calendar year IRS audit during a meeting Wednesday.

Findings were reported concerning the Beer Board, employees with take-home vehicles and the election commission.

Finance director Lynn Burns said the county had received the information a few days ago.

She said the county had not undergone an IRS audit in some time.

“It’s the first one we’ve had since I’ve been here,” she said.

Bradley County Mayor D. Gary Davis said the findings were not major concerns. Each concern is being addressed.

The auditor listed concerns for five personnel with take-home vehicles. Two were on call with Bradley County juvenile detention. The rest were with the Bradley County Sheriff’s Office.

“Basically, under IRS standards these do not qualify as take-home vehicles without a fringe benefit attached to their W-2,” Burns said.

The three Sheriff’s Office vehicles had not had permanent decals, but magnets. Burns said the vehicles are going to be permanently marked to address the issue.

If the juvenile court employees who are on call continue to use take-home vehicles, a fringe benefit designation will be included on their W-2. Burns said payments for deductions that should have been made in 2010 will be paid by the individuals.

On-call emergency personnel can take home a vehicle without it having to be claimed on a W-2.

Social Security taxes were at the center of the other concerns.

Members of the beer board are appointed and paid per diem for their service, and are not on the county payroll as employees.

“In 2010, the beer board [was] the only one that fell into that category,” Burns said.

She said the board was not required to have a 1099 tax statement that year because members made less than the $600 threshold for such a requirement.

“However, they (IRS auditor) are saying because (commissioners) appoint them that they are employees,” Burns said.

Burns said changes will be made to include these and other positions as payrolled county employees. This means Social Security taxes would be taken out of each check.

Election commissioners are on the county payroll and received a 1099 tax statement. Burns said according to the audit their were 14 election commissioners who made $1,500 in 2010. This would mean they should have had a W-2 form.

Burns said the county position would be to put everyone on a W-2 form, because which election commissioners will work when and how much they will make cannot be determined ahead of time.

Also during the meeting, the committee:

- approved amendments to accept donations to Bradley County Fire-Rescue.

- accepted a Federal Law Enforcement grant.

- authorized the Register of Deeds and the circuit court clerk to pull from reserves. Reserve money for these departments is money that was not spent from previous budget years.

- deferred a request from the Bradley County Health Department for additional funding for paraprofessional salaries. Earlier in the meeting the committee had accepted the state portion of the department’s budget. The health department was requesting that a portion of the funds left in its budget be used to make the increases. The health department does not have a reserve the way elected officials departments do. At the end of the fiscal year, any remaining funds from the locally funded portion go back to the county . The department is requesting $9,899 from the $19,394 returned to the general fund.