SCARSDALE, NY (September 5, 2022) – In the end, the District is about $500 short.
At the Scarsdale School Board on August 22, 2022, Acting Superintendent of Schools Dr. Drew Patrick announced that despite all the crying and gnashing of teeth since March 2022, the district has mostly settled its score with the IRS and will be a miserable $442.00.
What they say ;
Acting Superintendent of Schools, Dr. Drew Patrick:
“The first element concerns the IRS case, where there have been several positive developments. For the sake of clarity, this update focuses on the bottom line and avoids some of the murkier details:
“First, regarding the District’s Q1 2020 Form 843 Reduction and Refund Request, the District received a check from the IRS in July 2022 for $744,196.44. Of this amount, $714,168.71 represents penalties that have been fully waived and $30,027.73 represents the payment of interest owed by the IRS to the District.
Next, regarding the District’s T3 2020 Form 843 Reduction and Refund Request, the District was advised by the IRS that a refund in the amount of $100,243.55, representing penalties that have been reduced, is due to the District. District tax attorneys continue to follow the IRS on the status of this refund check.
“Therefore, once the District receives this remaining $100,243.55 refund check from the IRS, the District will have recovered and received abatements and penalty refunds in the substantial amount of $844,000, which is essentially full offset of the $843,558 tax payment in the fourth quarter of 2020 that the board authorized on March 30, 2022 and the district paid to the IRS shortly thereafter.
“The District has been advised by the IRS Independent Appeals Office that all penalties assessed and associated interest in the fourth quarter of 2020, totaling approximately $534,000, have been fully mitigated, the due process hearing Recovery is now complete and the lien against the district is expected to self-release in approximately 30 days.
“Finally, the penalty assessed against the District in the second quarter of 2021, in the amount of $412,837.45 plus applicable interest, has been fully reduced.
“So once the district receives the $100,243.55 refund check from the IRS for Q3 2020, the district will have recovered and/or reduced substantially all of the penalties and interest by approximately 1.8 million dollars charged to him.”
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