Grove City officials on Dec. 21 announced that they have learned the city owes the Internal Revenue Service $685,905 in withheld federal payroll taxes.

Grove City officials on Dec. 21 announced that they have learned the city owes the Internal Revenue Service $685,905 in withheld federal payroll taxes.

IRS officials visited the city Dec. 9, bringing with them 28 pages of documents that itemize unpaid amounts and filing errors from tax periods ranging from March 31, 2007, to June 30, 2010.

"This is the first time any of us were aware that there was this significant issue," said Mike Wasylik, director of public safety and deputy city administrator.

The city has paid the tax withholdings for the fourth quarter of 2010 and opened an investigation into the cause of the problem.

A press release from the city stated Mayor Richard "Ike" Stage directed city law director Stephen Smith Jr. and Wasylik to make certain the city is in complete compliance with all IRS policies.

Tax specialists from Smith's firm, Schottenstein, Zox & Dunn, are in discussions with the IRS to verify the city's obligation, Wasylik said.

After consulting with the Franklin County prosecutor's office Dec. 17, Grove City police began an investigation to determine if any criminal wrongdoing has occurred.

Read the full story in the Dec. 23 edition of ThisWeek Grove City Record.