Mahoning council penalized for failing to pay withheld taxes

COLUMBUS — The Mahoning Valley Regional Council of Governments was charged $15,907 in late fees, penalties and interest for failing to pay withheld income taxes and pension contributions during 2014 and 2015, state auditors found.

“Taxpayers should never have to pay a cent for a government’s late fees or penalties,” State Auditor Dave Yost said. “The payments for these easily-avoidable charges provided zero return on investment for taxpayers.”

The audit released today determined that Treasurer Blaise Karlovic withheld required employee contributions but did not submit the funds to the state, federal government and State Teachers Retirement System (STRS).

As a result, the council of governments was charged and paid the following amounts in late fees, penalties and interest:

• Federal Government: $13,565

• State Teachers Retirement System: $2,018

• State of Ohio: $324

Auditors issued a $15,907 finding for recovery against Karlovic. The full amount of the finding was repaid on March 22, 2017.