The IRS has fined Allegheny Township, a Pennsylvania municipality near Pittsburgh. The IRS is not commenting on its enforcement action, but news reports suggest that the fines might be connected to the township not properly withholding taxes from employee paychecks.

According to the TribLive, the township has acknowledged receipt of the fines, and audits are underway. AA dispute seems to be brewing based on an elected auditor’s request to review the township’s books. The TribLine story is here.

All employers are required to promptly file returns and make on time employee payroll payments consisting of deductions and contributions. In addition, employer taxes must also be paid on schedule. Government entities are not exempt from following the same rules as non-governmental entities, such as nonprofits or commercials businesses.