National Business

Mississippi town seeks private donations to pay tax debt

A Mississippi Delta town government is seeking private donations to pay off nearly $350,000 in tax debt and penalties.

The Bolivar Commercial reports Mound Bayou Mayor Eulah Peterson told aldermen on Tuesday that the city failed to pay $182,000 in federal payroll taxes from 2010 to 2016. Since then, the Internal Revenue Service has assessed $163,000 in interest and penalties.

The mayor wasn't in office then and says she doesn't know why the payments weren't made.

Peterson says the town has made two offers to settle the debt, but says the IRS has rejected both. Aldermen approved her request to form a fundraising committee to seek private donations for debt repayment.

The mayor says the town is also seeking help from its congressional representatives and is soliciting free legal aid.

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