Sacramento County Settles IRS Debt With Offer in Compromise
Sacramento County in CA, owed the Federal Government upwards of $18 million dollars in back taxes regarding payroll liabilities. This debt was incurred by a New Jersey payroll processor, Ingentra, whose services were utilized through the outsourcing of payroll processing for dozens of CA special districts in an effort to save money. Two executives at Ingentra have admitted to fraudulently taking payroll deductions from Sacramento County and a few other private companies, and using these funds for expenses of Ingentra.
Sacramento County attempted two unsuccessful compromises with the IRS to settle the debt which were rejected, but was finally successful on the third attempt, and will have to pay the IRS $500,000 through the Offer in Compromise program in order to settle the entire liability of approximately $18 million.
As a result of the fraud, Sacramento County will now handle its own payroll processing for those special districts, as it did prior to hiring Ingentra.
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