FIRST ON 3: IRS hits Navassa with $35k penalty

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Submitted: Fri, 01/13/2012 - 9:26pm
Updated: Sun, 01/15/2012 - 3:43am

NAVASSA, NC (WWAY) — The IRS has issued a nearly $35,000 fine to the Town of Navassa. When reached by phone this morning, Mayor Eulis Willis said the council has not yet talked about the penalty, but it does have the town’s lawyer working on it.

In a letter dated January 2, the IRS says the $34,964.62 penalty is for “Failure to File Forms W-2.” The W-2 is the form employers give workers as a record of their wages and withholdings.

Town Administrator Claudia Bray says the mistake was discovered early last year when an employee showed her their Social Security statement, which showed no contribution in 2008. Bray says she notified the council about it and started investigating. Bray said while checking with the IRS she found out then-Town Clerk Charlena Alston never sent the W-2s to the IRS and Social Security Administration.

Bray says in November she fired Alston because of issues with her job performance. Bray says Alston did not work under her supervision when the error was made in 2008. The town council, though, recently decided to rehire Alston and give her back pay. She returns to work next week, Bray said.

A phone number for Alston could not immediately be found to reach her for comment.

“A penalty has been charged for each Form W-2 that was not filed as required by section 6051 of the Internal Revenue Code,” the letter says. “Our records indicate that both the Social Security Administration and the Internal Revenue Service have been in contact with you to attempt to secure these Forms W-2.

“The penalty for intentional disregard of the filing requirements is the greater of $100 per required return or 10 percent of the aggregate amount of the items required to be reported.”

Bray says she filed the 2008 W-2s by a statutory deadline last month. She says that’s when the IRS issued the penalty. Now, she says, the town has to figure out how to pay it.

The IRS letter says the town has until January 23 to explain to the IRS what happened and ask for the penalty to be removed or reduced.

Mayor Willis said because the council has not yet had the chance to discuss it, he did not feel comfortable speaking publicly about the IRS fine. He did say that in addition to its lawyer, the town’s financial team would be looking at the problem.


  • seriously_really says:

    Correction on my part…the public meeting is on thursday night. Ok so here is the new delima in the great ole town of navassa….. Seems that the town council are DEMANDING that the Int. Chief W. Graham GIVE them a KEY to the Police Department!!! Really??? I mean there is evidence, sensative files, juvenile records, Law Enforcement Sensative Information that would/could not be posted on the walls for officer safety. Further more, you cound not guarantee that no audio or video would not be placed in building so there could never be any meetings or confidential interviews in there, rendering the building useless. Ok, these are just a few of the reasons why they don’t need a key, but can anyone give me a good reason why they would need one??? I am listening???

  • kblue2221984 says:

    Love thy neighbor Ricky D….. Say’s who? Say’s Kblue!

  • Challengetheworld says:


    You couldn’t run a McDonalds let alone a small town! Step Down and allow someone with a brain to help this poor community!

  • Brian says:

    He is a ‘manager’. He only needs to be smart enough to hire people smarter than he is to do the work.

  • Brian says:

    I wonder if this is a result of the incompetence of the town clerk that was fired and re-hired.

  • Challengetheworld says:

    It is…she wasn’t versed enough to be able to even know she had to do it.

  • Guest28451 says:

    They need to talk to the IRS and request an abatement so taht all they owe would be the difference between the amount submitted in taxes vs what they actually paid.. If they dont do this its a disservice to the town as a whole. I know a retail business that had an issue when an incompetent individual didnt submit proper W2s and they were slapped with a fine of over 200k which was abated and fixed withthe proper filing and paying the difference in taxes between the actually amount paid vs what should have been paid. Its normal and Navassa needs to pursue this otherwise they are foolishly paying a fine without fighting it with the IRS like they should..

  • Brian says:

    I see it now; it wasn’t in the original article when I posted the comment.

  • seriously_really says:

    First off….the comment that they can find a way out of this, while this is helpful, that is nice,but the main point is they NEVER should of been put in this situition in the first place. I mean come on how hard is it to figure out you have to submit employees W2 forms??!! And I will let you in on a little secret…..this is not the only thing that she has not submitted for employees..I can’t go into further detail due to legalality issues but there IS MORE!!!! So she was fired for poor job porformance…yea that sounds about right…but wait….the “new mayor cronies” are hiring her back??? and backpaying her after paying her sick, vacation time??? HEY!!!!! SHE COST THE TOWN OVER 35K in PENALITIES!!!!! and this is just what you know of!!!!!!!!! WAKEUP PEOPLE!!!!! She is due to come back Jan. 20,there is a meeting Jan. 17, I would suggest that the citizens that care about your town and taxmoney go and DEMAND ANSWERS that night…not the RUNAROUND from WILLIS!!!!! Oh yeah, the Police Department only has four police officers, when they asked for help, for more officers hmmm…there was a hiring freeze put into effect but wow just after the hiring freeze they REHIRED ALSTON BACK??!!!! Oh yeah, they PAID ALSTON for HER vacation but when an officer went to the meeting and asked that they pay him for a week of vacation (like they did Alston, since the Police Department dosen’t have the manpower to let him take his vacation) he was told NO!!!!!!! Did you know that if an officer is out sick or happens to have to have a day off the other officers are EXPECTED to work for FREE!!!!!!!!! YES I SAID FREE!!!!! Kinda makes you wonder where THAT MONEY IS GOING?????? Oh yeah….did you know that there was (not sure exactly) but around 10k of drug asset foreiture money that is SOLELY to be used by Law Enforcement Personel ONLY for Police equipment and hmmmmm…Alston said opps…there is NO money there…HEY THAT is a FEDERAL OFFENSE!!!!!!!!!!!!!!!! LET THE HAMMER COME DOWN!!!!!!! OH there is sooooo much more to come people… What was it the mayor said when he was arrested the night of his DWI,,,,of yeah…you are in Deep politics now!!!!!!!!

  • kblue2221984 says:

    He will fix it!!Say’s who? Say’s Kblue!

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