IRS Says Town Attorney Is Employee

For the second time in recent history, the U.S. Internal Revenue Service has contacted a Maryland municipality to inform the local government that its municipal attorney (and part-time planner) were classified as employees of the municipality rather than contractual workers. As such the IRS said that the Town of New Market owes back income taxes, social security deductions and penalties as a result of this misclassification. The Town is currently determining how to address this issue.

The Town of Elkton, Maryland within the past year paid back taxes and penalties in a similar case brought by the IRS. The IRS in just the past five years has sporadically brought claims of this sort against municipalities throughout the United States.