Nevada cuts $1.7 million deal for not making Medicare payments

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Updated: 11/08/2013 11:21 am

CARSON CITY, Nev. (AP) — Nevada has struck a deal with the Internal Revenue Service to repay $1.7 million in Medicare payments for judges and members of board and commissions that the state overlooked for more than 25 years.

The Nevada Appeal reports the federal government began requiring state and local governments to pay into Medicare in 1986. Budget Director Jeff Mohlenkamp says judges and members of boards and commissions fell through the cracks, and neither the employee nor state share was paid.

The state discovered the problem this year and took the issue to the IRS rather than wait for auditors to find it.

Under IRS regulations, the agency can demand payment dating back three years. Mohlenkamp says the IRS has agreed not to seek penalties and interest.

©2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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Nevadadad - 11/8/2013 5:33 PM
0 Votes
Simple! Nobody did a proper audit over the last quarter century. Nice.

roseanya - 11/8/2013 1:33 PM
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So what's the explanation or excuse on how Controller/Treasurer/Budget kept missing this? Certainly whoever prepares the federal tax reports does a reconciliation with payroll.....
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