The Morris Township board has erased a $94,000 debt with the Internal Revenue Service for unpaid taxes after dipping into its funds and obtaining a loan, it announced.
The Texas County Commission, which earlier halted distribution of state monies to the governmental entity due to the delinquency, has reinstated funds for roads and bridges.
Morris Township officials say from 2002-2010 taxes were collected from a road employee but none was sent for Missouri unemployment, federal Social Security and Medicare.
In 2011, the error was uncovered, and the board took corrective action and paid the Missouri unemployment taxes.
As of last month, about $94,000 in taxes were owed the IRS, which represented $74,000 in actual taxes and the balance in interest and penalties. On May 16, $25,000 was paid to the IRS from the township treasury. That left a balance of $69,502 owed.
The board secured a loan to pay IRS the balance last week.
The financial situation has the board examining its finances. Members are seeking voter approval of a 17.05 cent per $100 assessed valuation to keep its roadwork employee and maintain roads and bridges in good shape.
The township board says it is not taking any compensation or mileage allowed by law.
Members of the board are: Dean Campbell, treasurer; Sue Evans, clerk; and Gordon Evans and Gary Allen, board members.