Email to Mayor and Clerk-Treasurer

by Staff on March 15, 2007 · 12 comments

in Local

Yesterday I wrote “Clerk-Treasurer Decides City Attorney Doesn’t Need To Pay Taxes”. Today, I’ve sent an e-mail to Mayor Chastain and Clerk-Treasurer Kern asking a few questions. The e-mail is below. I will, of course, pass along any responses that I receive:

—–Original Message—–
From: []
Sent: Thursday, March 15, 2007 11:03 AM
Subject: SBOA Audit Report B28650

Mayor Chastain and Clerk-Treasurer Kern,

I was looking over the State Board of Accounts Audit Report B28650,
“Examination Report of City of Mitchell, Lawrence County, Indiana,
January 1, 2005 to December 31, 2005″ which was filed November 13,

The number and scope of some of the issues identified by the SBOA
surprised me, however what stood out the most came from page 13 of
their report and states:

“The City Attorney received compensation in the amount of
$15,000 without payroll deductions for taxes and no Form W-2 or Form
1099 was issued.”

Why is that?

As someone who owns a business and performs work for a number of other
organizations on a 1099 basis, both they and myself are *REQUIRED* to
the report these amounts to the IRS if they exceed $600. I am
required to pay taxes on the monies I earn, so why is Byron Steele
seemingly exempt from this requirement?

How many others are there who are performing services for the City but
are not having income taxes withheld and/or reported?

Since no Form W-2 or Form 1099 were issued, I’m going to assume that
the $15,000 was never reported to the IRS either. Why is City
Attorney Byron Steele allowed to work for the City tax-exempt?

I assume that this issue has been corrected? The matter was not
addressed in the “Official Response from Clerk-Treasurer”. Did Mr.
Steele receive a Form 1099 for calendar year 2006?

In case you do not have the SBOA’s report available to refer to, you
may access it online at

A timely response to my questions would be greatly appreciated.

Thank you,

Jeremy L. Gaddis
Webmaster, Mitchell News

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