ALAMOSA — “You can’t fight city hall” … and city hall can’t fight the IRS.
When the Internal Revenue Service made an offer the City of Alamosa could not refuse — without dire consequences — the city council last week unanimously agreed to reclassify several contracted positions as city employees and pay an approximate $15,000 settlement for the year 2010, which was audited by the IRS.
The settlement will cover withholding and interest on payroll taxes that would have been paid if the positions in question had been classified as employees that year.
In exchange for taking the IRS’ “generous” offer, the IRS will not audit and penalize the city for similar “violations” for the years 2011, 2012 and 2013.
Beginning in January, 2014, however, according to the agreement with the IRS the city will treat the following positions as city employees rather than contracted positions: city attorney; city prosecutor; municipal judge; and instructors at the rec center.
The rec center instructors include numerous fitness instructors as well as those who teach pottery, Aikido, gymnastics, Taekwondo and other classes at the city recreation center.
These positions will be treated as city employees from now on.
For the complete article see the 09-10-2013 issue.
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