Pennington County hit with IRS penalties

The group is now listed in an IRS database for tax-exempt organizations. (Source: MGN Online)

RAPID CITY, S.D. (AP) - The Internal Revenue Service has hit Pennington County with more than $87,000 in penalties for mishandling payroll taxes.

The Rapid City Journal says county auditor Cindy Mohler has asked the Pennington County Commission to authorize payment of the penalties. The commission is scheduled to consider the request Tuesday.

The IRS imposed the penalties this month after examining the county's employment tax records from 2016 to 2018. Officials say the penalties are the result of a longstanding payroll-tax practice.

Mohler says county employees have the option of being paid twice a month, instead of monthly. The IRS says the county wrongly did not withhold payroll taxes from the mid-month checks. Instead, the county waited until the end of each month to withhold payroll taxes from employees' total monthly pay.

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