IRS says Beauregard Parish School Board owes $1M
Published 7:56 am Friday, July 22, 2022
The Beauregard Parish School Board voted to retain the assistance of CPA Randy Brown in its response to a written formal demand from the IRS in the amount of $1 million the agency alleges the School Board owes in civil penalties.
In an emergency meeting called Thursday at the request of legal counsel James Lestage, board members discussed the potential lawsuit that claims unspecified paperwork was not filed in a timely manner between 2017 and 2018, according to Lestage.
Lestage said the letter claims that penalties have accrued over the past five years.
“They allege they sent notices. There is some issue about interpretations and how things have been moving forward,” Lestage stated.
Lestage assured board members that there likely are explanations that resolve most if not all of the penalties, but he said the board needed to discuss privately their range of options in how to respond to the formal demand.
At that advice, the panel voted to enter executive session. Upon returning to public session, board member Ray Bowman read aloud a statement on behalf of the full board that summarized their discussion. Board members said they agreed with providing a summary in an attempt to remain transparent with their constituents, while also protecting the integrity of their legal options.
“We have discussed the demand letter from the IRS. It does not and has not affected employee pay, payroll or taxes. The accusations are administrative in nature; involving potential civil penalties for alleged filing delays. The demand is currently at about $1 million dollars. Our records do not reflect that this is accurate. We are confident that this board and this finance department is on top of this situation and will attain the best possible result regarding these allegations,” Bowman read.
Within its approved motion, the board has authorized Brown to communicate with the IRS on behalf of the School Board and to coordinate with the board’s finance department to resolve the allegations.