SIMI VALLEY : IRS Rescinds $28,000 School Tax Penalty
The Internal Revenue Service has rescinded a $28,000 tax penalty assessed against the Simi Valley Unified School District for the late deposit of payroll taxes, officials said Thursday.
The mishap occurred in late 1990, after former Supt. John Duncan left the district and his duties were being handled by another administrator. School officials also said a payroll clerk had been out sick about the same time.
District officials asked Rep. Elton Gallegly (R-Simi Valley) last month to urge the IRS to reconsider the penalty because the incident was isolated, Supt. Robert W. Purvis said.
“It’s the only time it’s happened in the district. It wasn’t a chronic problem or an attempt to avoid the law,” Purvis said of the error that happened before he came to the district. “I was fairly confident it would be rescinded.”
Purvis said he believed that the $28,440.77 penalty had already been paid and that the amount of the tax penalty will be credited to the district’s tax account with the IRS.
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