DIX -- State Auditor Mike Foley sent a letter to Linda Rasmussen, Board Chairperson for the Village of Dix, regarding "concerns regarding the Village of Dix" the Nebraska Auditor of Public Accounts (APA) had received. 

"It was brought to our attention that, among other concerns, the Village has not remitted Federal taxes withheld from employee compensation for over 10 years," Foley said in his letter.

One of the problems the Dix community is facing, according to Foley's office, is no payroll taxes have been paid for nearly 10 years. The APA began limited preliminary planning work to determine if a full financial audit or attestation would be warranted. Pursuant thereto, the APA obtained financial records and other relevant documentation from the Village.

In Foley's October 2023 letter, Village representatives informed the APA that the Clerk stated she stopped making payments to the IRS when electronic payments were implemented because she could not figure out how to make the payments. The letter says payroll taxes were withheld, but not deposited. There are also concerns about Health Savings Account deposits, and "Christmas Bonus" payments.

Foley is encouraging measures that would help insure procedures on completed as required.

"We recommend the Village implement procedures to ensure municipal employee taxes are remitted timely, along with the Form 941s, to the IRS, as required by Federal law," the letter to the Dix Village says.

The letter goes on to say "Good internal control requires procedures to ensure that Federal taxes withheld from compensation paid to municipal employees is submitted timely, along with the corresponding Form 941s, to the IRS, as required by Federal law. - 3 - Without such procedures, there is an increased risk for not only loss or misuse of Village funds but also violation of Federal law. We recommend the Village implement procedures to ensure municipal employee taxes are remitted timely, along with the Form 941s, to the IRS, as required by Federal law."

 The APA began limited preliminary planning work to determine if a full financial audit or attestation would be warranted. Pursuant thereto, the APA obtained financial records and other relevant documentation from the Village. Based on the outcome of this preliminary planning work, including an analysis of the information obtained, the APA has determined that a separate financial audit or attestation is unnecessary at this time

According to the IRS, the Village of Dix, as of June 7, 2023, had not made any payroll tax deposits since Oct. 18, 2013. In addition, the Village had not filed the quarterly Form 941s for the 3 rd and 4th quarter of 2013, as well as all four quarters of 2014, 2015, 2019, 2020, 2021, and 2022. Documentation provided to the Village by the IRS showed that, for the period of tax years 2011 through 2018, the estimated balance due totaled $133,124, which included taxes due of $67,796.37 plus penalties and interest of $65,327.63.