Galveston County may owe a $76,550 fine to the IRS, and county officials are arguing over who bears the blame, the Houston Chronicle reported.
Galveston County Judge Mark Henry called a special meeting of the commissioners court Tuesday in League City after County Treasurer Kevin Walsh received a letter from the IRS. The federal tax agency is proposing the fine because the county incorrectly filed 1095-C forms for county employees last year. Those tax documents fulfill an Affordable Care Act requirement to verify employer-sponsored health coverage.
Henry pointed the finger at Walsh, noting the IRS letter described the April 19, 2018, filing as late. The forms were due by March 2 that year, the IRS said.
Walsh said a technical problem slowed the submission process. He said the forms were filed electronically on April 2, 2018, rejected four days later by the IRS and then resubmitted on April 19. According to Walsh, a notice from the IRS said the forms were “accepted with errors,” the newspaper reported.
County information technology employees explained at the meeting that the county’s vendor that handles electronic submissions had not kept up with the IRS’ rule changes for submitting the forms.
That didn’t forestall a heated discussion between the county judge and the county treasurer over what the IRS really meant and who is responsible for the situation.
At one point, Henry asked Walsh why he didn’t take responsibility as the only county employee tasked with submitting the tax information to the IRS, the newspaper reported.