Minneapolis Public Schools has incurred over $5.3 million in tax penalties from the IRS since 2022. The penalties were assessed for a range of issues, including $2.9 million for errors calculating and reporting employment taxes and another $2.3 million for late filing of Forms W-2 and Forms 1095-C.
That’s enough to pay about 40 teachers, given current district labor costs.
The IRS penalties were assessed starting in June 2023 and continued into the current month, according to information provided by Ryan Strack, senior executive officer for MPS.
The district has thus far paid out $770,000 of the penalties and is working to get the remainder reduced.
“MPS is working with staff from (district consultant Center for Effective School Operations) and other tax specialists to determine steps that will prevent future penalties,” Strack said in a statement.
The district declined to make anyone available for an interview.