Maryland Pays IRS $5.4 Million in Back TaxesThe State of Maryland made a $5.4 million payment to the IRS via Board of Public Works agreement on Oct. 30, the first audit of its kind in recent memory. The back taxes were owed due to: nine state agencies failing to properly withhold federal taxes, state police exceeding their contribution limits to deferred compensation plans, and a lack of backup withholding applied to some state vendors in 2020.Maryland initially owed $16 million, but the IRS was willing to waive some penalties. A top official in the Comptroller’s Office warned that the state may have to pay additional interest.
“This amount is specifically because staff within the Office of the Comptroller and other state agencies worked tirelessly to provide and obtain documentation to the IRS to significantly reduce the amount the state owes,” said Deputy Comptroller for Law and Oversight Rachel Sessa. “Since this is the first examination and assessment of its kind, the IRS agreed to waive penalties.”
The IRS is offering state training and guidance to prevent further issues, which will begin in coming months.“We are working to resolve the underpayment issue with the IRS. It occurred under the previous administration,” said Comptroller Brooke Lierman (D) during the Board of Public Works meeting. “Governor Moore, Treasurer Davis, Lt. Gov. Miller, and I know we’re all committed to transparency in the business of government, and wanted to make sure that people understand what this is, where it came from, and how we are handling it.”TheBus Union Approves StrikeLocal 639, the union members who provide transportation services for TheBus in Prince George’s County, overwhelmingly approved a strike by a vote of 120-1 if a work agreement is not reached soon. The union, particularly targeting RATP Dev – a wholly owned subsidiary of RATP Group, one of the world’s largest providers of transit – is demanding a contract that includes increased pension contributions and wages that are comparable to other professional bus workers in the Washington metropolitan area.**FILE** Local 639, the union members who provide transportation services for TheBus in Prince George’s County, overwhelmingly approved a strike by a vote of 120-1 if a work agreement is not reached soon. (Robert R. Roberts/The Washington Informer)“Despite meeting more than a dozen times, RATP Dev has refused to offer these Teamsters the contract they deserve,” said Local 639 President William Davis. “These 155 Teamsters are the sole reason that TheBus runs efficiently and safely in PG County, which is the second largest county in Maryland. This group is committed to securing a strong contract and we are proud to support them in getting them every penny they are worth.”TheBus’ fixed route system consists of 26 routes, which run over 10,000 miles throughout Prince George’s County and 2,129,000 people used the service in 2023, nearly 10,000 riders per weekday.
“Day in and day out, we provide an essential service to residents and visitors throughout the county, and it’s time our employer offers us a contract that reflects our important work,” said Kathleen LaFortune, an employee of RATP Dev and shop steward at Local 639. “We do not want to strike, but our employer has left us no other choice. We are not afraid to stand shoulder to shoulder on the picket line and withhold our labor.”
Source: Washington Informer
