Sen. Barbara A. Mikulski on Monday again urged the Internal Revenue Service to "get to the bottom of allegations" that AccuPay, a payroll servicer based in Harford County, failed to pass clients' tax payments on to state and federal collection agencies.
"Business owners in Maryland who may have been harmed by Accu-Pay need a government on their side," Mikulski said in a letter to IRS Acting Commissioner Steven Miller. "They need timely resolutions to their cases, including the waiver of fees and penalties where appropriate."
Maryland Comptroller Peter Franchot has said AccuPay clients who missed state tax payments would not face state penalties. Mikulski wants the IRS to agree to do the same.
The senator, chair of the Senate Appropriations Committee, made similar requests in a letter last month, shortly after police in Bel Air began investigating the company, now in bankruptcy.
"Furthermore, I am frustrated by reports that the IRS was aware of irregularities at Accu-Pay and other third party processors for years and did not take significant steps to protect small businesses," Mikulski wrote, citing a report to Congress by the IRS' Taxpayer Advocate Service that more than two dozen payroll companies have been prosecuted for failing to remit their clients' payroll taxes.
Mikulski said she intends to follow up on her inquiry in May when Miller appears before the appropriations committee.