The City of Leachville Still Owes IRS Major Tax Dollars

JUNE 21, 2006 -- POSTED AT 9:45 P.M. CDT

LEACHVILLE, AR -- The City of Leachville some how owes the IRS over $230,000 in taxes and that doesn't even include the fees and penalties. The city council called a special meeting Wednesday night to discuss how they plan to pay it back, but the meeting didn't seem to accomplish much.

"We do owe the IRS some money which was withheld from the employees' taxes and not sent in by our previous clerk treasurer," says Ralph Wells, the Mayor Leachville.

Ralph Wells has been the Mayor in Leachville for 24 years and he seems to think part of problem lies within the city council.

"The council can't seem to agree. I think they want to send someone to jail for this and I don't think there was any money stolen. It was spent on the city park and some other things in the city," says Mayor Wells.

During the special council meeting, they discussed getting an in-depth audit conducted for the years that the taxes were not paid, but the mayor says they've already conducted audits in the past years through the state and those failed to show any mistakes.

They didn't come up with the tax issue at all. How they could've overlooked that I don't understand," says Mayor Wells.

Mayor Wells went on to mention that he feels this problem is being delayed because of the council. He said that a plan to pay back the money has to be made and if they keep delaying action, nothing is going to get solved.

"The council just seems like they don't want to step up to the plate and solve this problem," says Mayor Wells.

The meeting went on for hours tonight, but they never were able to come up with a plan to pay back the money. They finally voted to look into the costs of having the private in-depth audit of the city's assets.