MCKEE, Ky (WYMT) - The Jackson County Fiscal Court owes the Internal Revenue Service hundreds of thousands of dollars.
The county had not paid their portion of employees taxes for six quarterly periods dating back to 2011.
The IRS filed two liens demanding payment from the fiscal court in December, but the judge executive says they are working to make things right.
"We lost our coal severance revenue and have not recouped our reimbursement from the sheriff's office. Just a number of events that put us in financial straights," said Judge Executive William O. Smith.
With less revenue and more expenses, Smith says they have not been able to pay their portion of taxes to the IRS dating back to 2011.
The IRS has filed two liens against the fiscal court demanding the more $330,000 for the back taxes including interest and penalties.
"That was the only options without laying people off and not paying salaries," said Smith.
The county treasurer says they have already paid back two quarterly periods of back taxes, and they plan on having it all paid back by the end of the fiscal year.
"We have been aware of this for a number of months now, and the fiscal court has been wrestling with what to do and how to solve it," said Smith.
Starting in November, a one percent business licensing tax was passed by the fiscal court which is helping them pay back the hundreds of thousands of dollars owed to the IRS.
Smith believes they are now on the right track and hopes to have their debt to the IRS paid off in June.
He says once they get all the taxes paid off, most of the interest and penalties should be waived.
He says right now they owe close to $175,000.