Arkansas Lottery Damage Control on IRS Penalty


The IRS recently slapped a $98,000 penalty on the Arkansas Lottery Commission for late payment of taxes. The Commission’s outgoing chief fiscal director, Philip Miley informed the Commission of the IRS action. In conjunction with this, the Commission has hired a tax attorney to make an appeal to the IRS to waive the penalty. Commission Director Ernie Passailaigue said he believed they had a good case. “Once we get our case in front of them, I think we can get a good result,” Passailaigue said to the Commission. An appeal has to be made within 60 days.

Passailaigue feels that the IRS could waive the $98,446 in penalties for last year’s late tax payment withheld from some lottery winners prizes but not the interest charged on it. The commission was also late in paying its taxes in 2009, but the penalty was waived.

The Arkansas Lottery had its beginning in 2008 when Arkansas voters voted to approve it as a means to raise funds for state college scholarships. The Lottery began selling its tickets in September 2009.

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© Darrin Mish, Tampa Tax Attorney, The Law Offices of Darrin Mish, P.A. | Attorney Advertising

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