Indiana News

IRS Seeks $6.78M from Gary Schools in Unpaid Taxes

GARY, Ind. (AP) – The Internal Revenue Service is seeking $6.78 million in unpaid payroll taxes from the financially-strapped Gary Community School Corporation.

The Post-Tribune reports that the IRS has filed two liens with the Lake County Recorder's Office against the district. One lien seeks payment of $5.27 million for payroll taxes in 2013 and the other says the district owes $1.51 million for part of 2012 and 2013.

Both documents say the IRS is giving notice that taxes, including interest and penalties, have been assessed against school district and its interim chief financial officer, Michael Washington.

Gary city attorney Robert Lewis says the district plans to establish payment plans for its debts.

Superintendent Cheryl Pruitt said the district is addressing its bills through a fiscal plan.

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