City of Marion Bank Accounts Frozen by IRS

From the West Alabama Newsroom –The city of Marion and its employees are breathing a sigh of relief after narrowly averting a Thanksgiving holiday catastrophe.

Mayor Dexter Hinton says the city was notified Monday that the IRS had put a levy on the city’s bank accounts. And frozen the accounts.

“If they’re frozen you can’t use them,” said Hinton.

And as a consequence, city officials would not have been able to pay bills or make payroll.

The issue stems from $694,000 dollars the city owes in back taxes.

“The reason of the levy is because of 2008, 2009, 2010 and 2011 IRS payroll taxes was not paid,” said Hinton.

“That’s prior to my administration. And I hate that we’re having to take care of old issues. And we’re going to get it taken care of in a timely fashion. We’re going to work as hard as we possibly can to make sure that our citizens are taken care of, our employees,” he said.

Hinton says the levy was removed Tuesday afternoon after the city was able to rectify some issues with the IRS.

That’s good news for city’s forty employees heading into the holidays.

And a good thing it got resolved so quickly. Because Wednesday is payday.