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Officials say city of Benham owes IRS unpaid taxes

By: Angela Sparkman Email
By: Angela Sparkman Email

BENHAM, Ky. (WYMT) - Benham City Council members say the city in Harlan County owes thousands of dollars to the Internal Revenue Service.

City Council member Wanda Humphrey says she and other council members recently received a letter from the IRS. It claims the city of Benham owes nearly $38,000 dollars in unpaid taxes.

"None of the councilmen said they were aware of the situation," Humphrey said.

Humphrey says an IRS investigator claims the city did not pay certain taxes for three quarters from June, 2012 to March, 2013.

"To my way of thinking, this is money that should have gone to the IRS but did not. I just don't know how it happened. I really don't," Humphrey said.

City Hall employees declined to talk on camera.

IRS officials said they could not discuss the situation.

Humphrey said an investigator interviewed all of the council members individually for the probe.

"The only thing we were told in executive session was that we owed that and that we were going to have to come up with the money somewhere," Humphrey said.

She says the council hopes to resolve the situation soon.

"We're going to fix it. We've got a good council now. We're going to do everything we can," she said.

Humphrey says she is also waiting to find out how the taxes supposedly went unpaid.

The city of Benham is also still without a mayor since a judge removed Shirley Dodd from office in a legal matter. Humphrey says the council must select a new mayor soon or Governor Steve Beshear will appoint one.

Humphrey says the City Council hopes to have a new mayor in place when they discuss the IRS probe.

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