Colony unhappy with tax service after state levies fine for missing reports

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Left to right are Councilwoman Ethel Alexander, Councilman Curtis Johnson, Mayor Donnis Leeth, Councilman Samuel Ashford, Councilman Melvin Hammond and Town Clerk Patricia Ponder. (W.C. Mann for The Cullman Tribune)

COLONY, Ala. – The Colony Town Council on Tuesday evening returned to the tax issues that were the topic of a special called meeting on Aug. 1. According to the council, the Town has been fined $250 by the state, and the IRS has notified the Town that action is pending, due to “the non-filing of quarterly payroll tax reports to the IRS and State of Alabama by Liberty Tax Service.”

According to Town Clerk Patricia Ponder, the Town has had issues with the handling of its taxes through the company’s Cullman franchise for four years, resulting in at least two instances of town employee tax refunds coming late. The Town is also reportedly missing certain paperwork which the service was supposed to have turned over.

Councilman Melvin Hammond, who chairs Colony’s Finance Committee, suggested that the council could find another tax service, an idea supported by other members, and Mayor Donnis Leeth stated that Liberty should be required to pay the state fine.

Ponder reported to the council that the IRS agent with whom she spoke about the matter suggested that Colony could file a request to have the owner of the tax service deemed a “non-filer,” which could severely affect the business of the tax service.

The council did not make any decision on action, but Hammond said that he hopes to meet with the owner of the tax service this week.

The Colony Town Council meets on the second and fourth Tuesdays of each month at 6 p.m. at Colony Town Hall, with work session at 5.  The public is invited to attend.

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W.C. Mann

craig@cullmantribune.com