Following is the full text of Grove City's press release about the payroll taxes owed to the Internal Revenue Service:

Following is the full text of Grove City's press release about the payroll taxes owed to the Internal Revenue Service:

On Thursday, Dec. 9 the Internal Revenue Service (IRS) delivered a notice to City Hall that indicated the City of Grove City owed the IRS in excess of $685,000 in federal payroll taxes due to filing errors. The notice covers the period from 2007 to the present. It appears that the filing errors may have predated the time period covered in the notice. The amount owed includes both penalty and interest charges. The City believes that approximately one half is penalty and interest.

Immediately following receipt of the IRS notice, Mayor Richard L. "Ike" Stage directed the City's Law Director Stephen Smith, Jr. and Public Safety Director/Deputy City Administrator Mike Wasylik to make certain that the City was in complete compliance with all IRS policies, all current payroll taxes would be promptly paid and the cause of these errors would be quickly identified and corrected. Funding is currently available to pay the City's 2010 IRS obligations, and the income tax withholdings payment for the fourth quarter has been made.

The City has enlisted the aid of specialized tax attorneys who have already begun discussions with the IRS. They will review the claims of the IRS to verify the City's obligation. These attorneys are working directly with the City's Law Director.

Additionally, the City is in the process of retaining an outside consulting firm to serve as an independent auditor. They will examine the policies and practices of the City's Finance Department and determine how and why these filing errors were made. Recommendations will be forthcoming to ensure that such errors will not occur in the future. It must be noted that the City authorized a special forensic audit in 2008 and has been audited annually by the State of Ohio Auditor's Office. Neither the State's audits nor the forensic audit indicated that there were any issues with these federal payroll tax filings.

On Friday, Dec. 17, after consulting with the Franklin County Prosecutor's Office, the Grove City Division of Police began an investigation to determine if there has been any criminal wrongdoing in this matter.

The City's objective is to comply with all IRS payroll requirements, to correct all accounting procedural errors that may have been made and to take any other corrective or punitive actions that may be necessary. The City will ensure all investigations and records are completely transparent and that the public is kept fully apprised of all results and actions as required by law.