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State Neglected Medicare Payments Since 1986

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(photo courtesy: State of Nevada)

(photo courtesy: State of Nevada)

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CARSON CITY, Nev. (AP) — Nevada has struck a deal with the Internal Revenue Service to repay $1.7 million in Medicare payments for judges and members of board and commissions that the state overlooked for more than 25 years.

The Nevada Appeal reports the federal government began requiring state and local governments to pay into Medicare in 1986. Budget Director Jeff Mohlenkamp says judges and members of boards and commissions fell through the cracks, and neither the employee nor state share was paid.

The state discovered the problem this year and took the issue to the IRS rather than wait for auditors to find it.

Under IRS regulations, the agency can demand payment dating back three years. Mohlenkamp says the IRS has agreed not to seek penalties and interest.

 

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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