ALAMOSA, Colo. (AP) The Internal Revenue Service is going after the Alamosa City Council over plans to reclassify some city employees as contractors.
The city council unanimously agreed to reclassify several contracted positions as city employees and pay an approximate $15,000 settlement for the year 2010 following an IRS audit.
According to the Alamosa Valley Courier, the settlement will cover withholding and interest on payroll taxes that would have been paid if the positions had been classified as employees that year.
As a result of the agreement, the IRS says it will not audit and penalize the city for similar violations for the years 2011, 2012 and 2013.
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