ORDER NO. 30326
IRS NOTICE FOR TAX PERIOD MARCH 31, 2007
Came to be heard this the 11th day of June, 2007, with a motion made by
Commissioner Williams, seconded by Commissioner Baldwin. The Court
unanimously approved by vote of 4-0-0 to:
Approve paying the I.R.S. penalty and interest of $3,233.86, and moving the
monies from Workers' Compensation, # 10-409-204, to Non-Departmental
Contingency, # 10-409-571.
30326
1.16
COMMISSIONERS' COURT AGENDA REQUEST
PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS
REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT.
MADE BY: Mindy L . Williams
MEETING DATE: June 21, 2007
OFFICE: County Treasurer
TIME PREFERRED: OPEN
SUBJECT: (PLEASE BE SPECIFIC I . R. S . Notice regarding Tax Period
March 31, 2007
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON)
NAME OF PERSON ADDRESSING THE COURT: Mindy L. Williams
ESTIMATED LENGTH OF PRESENTATION: 5 to 15 minutes
IF PERSONNEL MATTER -NAME OF EMPLOYEE:
Time for submitting this request for Court to assure that the matter is posted in
accordance with Title 5, Chapter 551 and 552, Government Code, is as follows:
Meeting scheduled for Mondays:
THIS REQUEST RECEIVED BY:
THIS REQUEST RECEIVED ON:
5:00 P.M. previous Tuesday.

All Agenda Requests will be screened by the County Judge's Office to determine if adequate
information has been prepared for the Court's formal consideration and action at time of Court
Meetings. Your cooperation will be appreciated and contribute towards you request being
addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners'
Court.
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lnlerual Rcr~cuueScr-•ice
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;t,~•; KERR COUNTY
MILADY L WILLIAMS
70D MAIN ROOM CB103D
KERRVILLE TX 78028-5313
10939
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l~o-•ussislunc~, cull,
1-n0(1-8?9-1)1 t
No[ice Nuwbcr: C'l'102
Ua1c: J-uw 4, ?007
'i'uxpaycr laic--iilicaii---- N---~-L-c-•:
746001494
1':-x l~'ur---: x)41
Tax 1'cr`iuci: Murcl- 31, 201 Y7
We Changed Your Tux )E~eturn
1~Qc.~~~se We F~i!l1~~ A Cc?~cli~l?t10!!I E!'~'c~!'
We're sending you this notice to explain wl•-y we changed your 941 l~cderai Employment `1'ax return for
the above tax period.
Why We Changed Your Tax Rehlrn
~"^ We 1•ound the amount rcpo--tcd as total I~cdcral 'l'ax ])cposits t•or the quarter. diCtcrs li•om tl~-e anroimt we
have credited to your account.
How We Changed Your Account Balance
The correct a-r-ouut of total deposits, credits and payments credited iu tl-is account, it'any, were applied
against any corrections made to your tax to determir-e tl-c atnounl ofbalance due or rcliuicl.
'1 he total amount applied lu this account is shown below. (You may also find a table listing each amount
and the date the amount was applied.)
The i~OllOWI-lg 15 a list of payments we have credited to your account for tl-e above tax return ar-d tax
period:
,,~

1/~iaG	~

~u:it;tiiii	
,,,,.,
i .uiv	n ,,,,,,

.u..~~.-'at
O l/ 1 1/2007	~ 100,582.02	0 l/3t)/2007	`93,973.58
02/20/2007	$99,4059(1	02/22120!)7	'63.32
03/05/2007	$94,403.20	O3/08/2(1O7	x;25.02
03/ 19/2007	`94,413.27	U3/2G/20t17	`~Ci87.84
04/04/2007	X95,917.35	t)4/30/2UU7	~;667.9t) ~- . '- ~~ ~ ' ~~~
P~~~~L I
The. f~.~llu~uti~r calculations sho~.v liow we refiglu~ed the correct a-mount of t~jx ,end any balance that is due:
i~'t.deral Inci~rne Tax ~'~lithheld $220,616.20
P Tax on Social Security C~'ages $2)2,163.87
1'ax ~~n Social Security Pips S.Ot)
T`ix i)n Medicare tVages and Tips $68,41129
Tot~~l Taxes X581,191.36
Current Ql.tat-ter's Fractions of Cents $.00
Cun-ent Quarl:er's Sick Pay S.Ot)
Cun-ecit Quart::,r's Adj for Tips and Group-term 5.00
Life Insurance
C`ui~-e~:rt Fear's Income Tax ~~~t~itlillolding $.00
Prior ~uartsr's Social Security and Medicare 5.00
'faxes
Special additii~ns to Federal Income Tax $.OU
Special Additions to Social Security and 5.00
i~i'Iel i~~~;.tre
Total Adjustments $.()0
Total 'T'axes After Adjustments X581,191.38
't'otal 'l'ax Deposits $478,829.48
C)~~erpaymient from Prior Rehun! Quarter% Year $.00
Other Credits and Payments $1{_)1,249.)2
'1'ot.~ii Tax Dep~~sits, Credits and Payments ~58(1,079.~0
Tars Owed $1,1ll.98
Penalty: $2,113.32
Interest: SR.56
Balance Due $3,233.86
4~~Jhat'~'ou Need to Do
• If yo~~ Dove, pay the amoruit now. ~~e will not add any additional charges if we receive your pa}nlient
by June 25, 2007; however, if any of the balance di_ie amotult includes tu~paid~ tax, and the unpaid tax
you o~ve is not paid. within 10 days of the notice date, an additional _5% Federal Tax deposit penalty
will be charged on the amotuit of the unpaid tax.
• Make your cheek or nlo~ney order payable to Che United Mates 't'reasury.
• Write yo~~r 'Taxpayer Identification Number, tax form number and the tax period on your payment.
Please n~iail yoi_lr payment with the bottoi3i part of this notice in the enclosed envelope-
if .i~~~~i~ lta~~e ally yutatft~ns, please call 1-80(14829--(1115. IIavc your acc~~unt informatiur- and copies ~~f
yi~ur tz~?: return ~~rithin reach i~~hen yut~ cs~ll.
Pate 2
' TIN:74-6001494 Ponn:941
1'ax Pariod: March 31, ?007
I~'or tax forms, instructions and information visit w~~~.irs.~uv. (Access to this site will not provide you
with your specil~tc taxpayer account information.)
1'cnalty and Literest
About Your Notice -The penalty and/or interest charges on your account. are explained on the following
pages. If you want a more detailed explanation of your penalties and interest, please call the telephone
`~ _Y' number listed on the top of this notice. You may call your local IRS telephone number if the ntuz~ber
shown on your notice is along-distance call for you. All days mentioned in the paragraphs below are
calendar days, unless specifically stated otherwise.
010939
Ycnaltics: $2,113.32
O3 Penally for Nut Makiufi a Proper Federal 'l'ax llepusit $2,102.2[1
We charged a penalty because you did not make a proper tax deposit. Conunon reasons why we charge
this penalty are:
• You did not deposit your tax on tinge
• You did not deposit enough tax
• You paid your tax directly to IRS
,~-. You deposited your tax to an unauthorized financial institution
• You did not deposit your tax electronically, as requiredby law
If you disagree with this penalty, see "Removal of Penalties" in this notice. ror information about.
depositing taxes, see Publication 15 (Circular l;j, Employer's Tax Guide; or Publication 51 (Circular A),
Agricultural Employer's Tax Guide.
(htterracal Rev~rrtre. Code section h65b)
The table below shows how we figured your penalty. We multiplied the rate times the amotult due.
Due Date	Pymt Date	Days Late	Pymt Type	Rate
02/16/2007	Not Paid			10~
02/16/2007	02/20/2007	4	EFT	2~
02/16/2007	02/22/2007	6	EFT	5~s
02/16/2007	03/08/2007.	20	EFT	10~
02/16/2007	02/20/2007	4	EFT	2~
03/16/2007	03/19/2007	3	EFT	2~;
04/18/2007	Not Paid			10~s
Amt Due	Penalty
1,085.12	108.51
98,292.44	1,965.85
3.32	0.17
25.02	2.50
1,113.46	22.27
3.32	0.07
28.34	2.83
Total Penalty:	2,102.20
Pa~~; 3
07 Paying Late $ll.12
We charged a penalty because you paid your taxes late. We coruit part of a month as a full month. If you
disagree with this penalty, see "Removal of Penalties" in this notice. To avoid this penalty in the future,
,.-.
you should pay your taxes by the due date. Even if you have an extension to file your tax return, you do
not have additional time tip pay your tax.
(If~tternfxl Revera~-re Code section 6651 (~a) (2))
The table below shows how we figured. your penalty. We multiplied. the number of months times the
monthly rate (1/2 percent) times the principal (not to exceed 25%).
Date No. Months Rate/Month Prin~~pal Penalty
06/30/2007 02 0.50% 1,111.98 11.12
Total Penalty: 11.12
Removal of Penalties
The law lets us remove or reduce penalties if you have reasonable cause or receive erroneous written
advice from IRS.
Reasonable Cause
If you believe you. have an acceptable reason why IRS should. remove or reduce your penalties, send us a
signed explanation. After we review your explanation, we will notify you of oLU- decision. In some cases,
we may ask you. to pay the tax in full before we reduce or removethe penalty for paying date.
Erroneous Advice from IRS
We will remove your penalty if all the following apply:
1. You asked IRS for advice on a specific issue,
2. You gave IRS complete and accurate information,
3. You received advice from IRS,
4. You relied on the advice IRS gave you, and
5. You were penalized based on the advice IRS gave you.
To request. removal of the penalty because of erroneous advice from IRS, you should do the following: (1)
complete Fonn 843, Claim forRefc.rrrcl ctracl Regtrestfor.Abaternertt; and (2) send it to the IRS Service
Center where you tiled your return.
The law allows you to tell the IRS where to apply yol~r deposits within the tax retLUn period with a deposit
penalty. You have 90 days from the date of the correspondence you received showing the deposit penalty
to contact the IRS if you want to specify whereto apply your deposits.
The law also allows the IRS to remove the deposit penalty if: (1) the penalty applies to the first required
deposit after a required change to your frequency of deposits, and (2) you file your employment tax
retur7is by the due date.
h~rterest: X8.56
Page 4
• TIN: 74-6001494 Perm, 941 Tax Period: March 31, 20(17
(19 Interest
~--~ We charged interest because you did not pay your tax o11 tin-le. fiencrally, we calculat+r int~rest li•ur11 the
due date ofyour return (regardless of extensions) until you pay your tax in titll. "fllc interest rate is
variable and 111ay change quarterly. We cllargt intcrvst on all penalties except estirnatcd tax penalties.
(Irrternctl Reti~errere Cuclc~ sectiurr 661)1)
~~_~ The table below shows how we figured your interest. We multiplied the lttctur times the principal.
~c
From Date To Date Days Rate Factor Principal Interest
10939 04/30/2007 06/04/2007 35 8.0~ 0.007699885 1111.98 8.56
Total Interest: 8.56
Corporate Interest - We charge additional interest oft"/oil; acci~rding to our records, you didn't magic your
corporate tax payment within 30 days after iho IRS notified you of tllc ullderpaylnent of tax, 't'his inleresl
begins on the 31st day after we notify you of 111e underpayment on tax amuullis you owe over $ liiii,t;t;i),
minus your timely paynlcnts and credits.
19 Interest -Additional Lllerest ('hares
If the a1110U111 y0ll OWe 15 ~i 1Ot),t)!)O Or more, plea Se 11111);8 SUre tllill: Wt; rt:'CelVe your payment within ! tl
work days from the date of your not ice. If the amount you owe i5 less than. `~ 1 Uil,!)Ut), please make sure
that we receive your payment within ? I calendar days lronl the date of yi~ur notice. I1' we don't receive
°~ full payment. Wltlll[1 tlles8 111118 tra111t;S, the law rocluires us to charge interest until you pay the full amount
you owe.
~~"' ctr"r iirttr
Return this voucher with your paymuil ur coti•~spondenc~.
Y otu- T~lcphone Number:
24
't'B 3UU721 U3U7U919
13~st 'l'ime to Call:
__AM __PM
?9111-116-SG211-7 C
Amount ,you owe: '3,233.136
' You will avoid a~i~iitional p~nallics ami~or
liit~l'CSI. Lt we CdC~IYC yi~it ~~ 6,11.1 hflyll'ti'nt by
.lone 25, 21)07
^ Amount c~-closed:
Make payal>Ic to tJnilud Statrs'1'rrasury
' Write'l'axpayerldcnliticationNumbrr,lax
period and tax form mull>cr on payment
^ Correspondence enclosed
102 L'Ittrna) Revenue Service
~^"` OCrI)IiN, U"f 5~12U1-UU39 I~1?RR COUNTY
°4~ MINI)' 1. W ILLIAMS
7OC) MAIN R(1OM C']31031)
~~u~ti~n~n~~~~~uuul~~~n~~l~i~u~~~~~~iu~~~~~ kl?RRVI1.1.1~ '1'~ -l~l)?\-31?
"46001,494 ~Y KERR O1, 2 200700 670 00000020086
1' 1 g~ 5
Rough Draft Copy
:~~
Kerr C®un~jr T'reasr~rer
700 /i~fain, No®nr C~'03D
Ker~vi//e, Texas 78028
830/792 2275 Office
830/257-9228 ~'ax
June _, 2007
Internal Revenue Service
Ogden, UT 84201-0039
Re: Request for abatement of penalty/interest for Tax Period: March 31, 2007
Request for abatement of penalty/interest for late filing: 4th quarter 2006
To Whom It May Concern:
Please accept the following as explanation and support for the above referenced requests for abatement of penalty and
interest for the tax period ending March 3 1, 2007 and late filing for tax period ending December 31, 2006.
When I received notice on June 4~' from the Internal Revenue Service regarding pending taxes owed, penalty and
,..~-. interest charged (copy attached} for the Tax Period ending March 31, 2007 I phoned the 800 number listed in the
notice and spoke with Ms. Austin (#b207274). I explained to Ms. Austin that I have only been the Treasurer for Kerr
County since the 8`h of February of this year. I was appointed after the previous Treasurer resigned on February Sth.
Upon coming into the Treasurer's office I began having to learn many "new" jobs, one of which was 94I reporting and
depositing. I believe part of the problem with our 1st quarter 2007 return has to do with transition issues. Ms. Austin
told me that we received the notice because during the i sc quarter of 2007 for two pay periods our tax liability was over
$100,000 and the deposits had not been made by the next day. At the end of December 2006 there was a $l,l 14.46
overpayment that we requested to be applied to the next quarter return. Ms. Austin informed me that the Internal
Revenue Service had not received our 4tb quarter 2006 return. I know that it was mailed, but I also know that it was
sent late. After February 8th I discovered that the previous County Treasurer had not completed or filed the 4`h quarter
2006 941 report. 4n February 12`h the report was completed and mailed. I have no documentation to support this
claim because it was not sent by certified mail. Ms Austin suggested that I send a copy of the 4th quarter 2006 941
return to the Odgen Utah office as soon as possible, which I did on June 4`h by certified mail, return receipt requested.
The attached graphs will show what transpired during the 4`h quarter 2006 and 1 s` quarter 2007 tax periods.
I appreciate your consideration in this request for abatement. Thank you.
Sincerely,
Mindy L. Williams
Kerr County Treasurer
/attachments
Graph 1
December 29, 2006 Tax Liability
December 29, 2006 941 Tax Deposit
,,,..... January 12, 2007 Tax Liability
January 11, 2007 - 941 Deposit
Applied carryover from 4`h quarter 2006
Tax Period: December 31, 2006
$ 95,946.58
$ (,97,060.08)
$ (1,113.50) -carryover to next quarter
Tax Period: March 31, 2007
$	101,695.48
$	(100,582.02)
	
$	1,113.46
$	( 1,113.50)
	
$	( .04)
Graph 2
Tax Period: March 31, 2007
January 31, 2007 Tax Liability
January 30, 2007 - 941 Tax Deposit
$ 93,045.14
$ (93,973.58)
$ ( 928.44)
February 15, 2007 Tax Liability
February 20, 2007 - 941 Deposit
Applied carryover from January 30, 2007
$ 100,334.34
$ (99,405.90)
$ 928.44
$ ( 928.44
$ 0.00