If you're reading this, something about your tax situation has you worried. That's fair \u2014 the IRS is intimidating until you know how the rules actually work. I'm Darrin Mish, a Tampa tax attorney. I've handled cases like yours for 32 years. Let me walk you through it.<\/p>\n
It is ironic that the Philadelphia School District is being audited by the IRS the same time as the district is requesting for up to $110 million from the city of Philadelphia. \u00a0This amount is to cover for a $629 million funding gap the district faces this coming fiscal year.
\nOn Tuesday last week, IRS officers appeared at the district headquarters to begin the audit.<\/a> \u00a0On the same day, the district officials approached City Council to ask for between $75 million and $110 million to pay for the budget shortfall. \u00a0The district officials asked the IRS officers to reschedule their work.
\nLast Wednesday, it was reported that the district had fired Eileen Pelzer, the payroll director who has been responding to IRS enquiries<\/a> since April. \u00a0However, the district made no comments on the dismissal of their payroll director<\/a>. \u00a0A district official who is familiar with payroll issues explained that some school employees work and are paid as independent contractors in after-school activities for various schools.
\nIn this regard, the district came out with a statement pertaining to the IRS audit through its spokesperson, Jamilah Fraser that, \u201cIt (the IRS audit) is not a criminal or civil investigation.\u201d \u00a0The statement also noted that \u201cschool districts nationwide\u201d are \u201caudited by several entities every year<\/a>\u201d and described the IRS enquiry as a \u201crandom, routine audit.\u201d
\nThe statement said that, \u201cThe purpose (of the audit) is to ensure that we are complying with the tax code<\/a> and that our employees are doing the same.\u201d
\nThe district confirmed that the IRS had presented it with 28 items to answer to. \u00a0It was not an expanded number and it did not contain questions about expense reimbursements for School Reform Commission members. \u00a0The district says it is fully committed to responding to the 28 items.
\nState Sens. Shirley Kitchen and Vincent J. Hughes jointly wrote a letter to Mayor Nutter and City Council President Anna Verna requesting for additional funds to aid the district\u2019s schools. \u00a0Kitchen said the IRS audit<\/a> did not change anything.
\nMayor Nutter has expressed his support for getting the requested funds for the schools. \u00a0The city is set to provide $815 million in tax revenues and grant funding<\/a> to the district for its fiscal year starting July 1. \u00a0This comes up to about 30% of the districts budget.<\/p>\n