Treasurer sues controller over IRS form requirement for tax refunds
The treasurer in Washington County is suing embattled Controller April Sloane over her demands that people who are owed tax refunds from the county government be required to fill out federal tax forms before receiving reimbursement.
The solicitor for Treasurer Tom Flickinger filed the lawsuit Friday in Washington County Court of Common Pleas asking for declaratory judgment that would block Sloane from requiring people fill out W-9 forms for money that is not considered taxable income.
Sloane apparently began this summer requiring the Internal Revenue Service tax forms be filled out before she would release funds to people who overpaid or were overcharged on their property taxes, among other payments. That has apparently caused issues with Flickinger’s office, as he has been unable to reimburse people who are owed money for overpayments.
According to the lawsuit filed by Flickinger’s solicitor, Lane Turturice, the controller is withholding the tax refunds and then “strong arms” the taxpayer into completing a W-9, which is typically used by contracted workers to declare income. Turturice theorized in court documents that Sloane erroneously believes every individual or entity that receives money from Washington County is a “vendor” and must complete the form regardless if they’re owed non-taxable reimbursements for overpayment. The process also apparently will require the county to send out 1099 tax forms that are typically produced by entities that have paid out income.
“Completion of a W-9 form requires a Taxpayer to divulge very sensitive, personal information, which in this case is given to the government through the County Controller whose personal judgment is very troubling, at best,” Turturice wrote in court documents.
That appears to allude to the recent legal troubles for Sloane, a Republican who was elected to office in 2021. Sloane was charged Dec. 12 with felony animal cruelty after police said she neglected her dog, Thor, at her North Strabane home and caused its death from “severe emaciation.” Since then, numerous high-ranking Washington County officials and both local Republican and Democratic committees have called for Sloane’s resignation, which she has rebuffed.
Turturice first raised questions about Sloane’s tax form policy in June, and both he and Flickinger worked to “effectuate a reasonable change in her policy” by offering to write a new procedure for her to use. Over the summer, the W-9 form policy was only required for refunds above $600, but has since changed to any amount of money, according to the lawsuit.
The lawsuit states that Flickinger has worked to “end the victimization of Taxpayers through a change in (Sloane’s) unlawful policy,” but she has only responded to “assert her autonomy as an independently elected official and that no one, especially (Flickinger), is going to tell her how to run her office.”
The treasurer claims that Sloane has told county officials that the completion of the W-9 form is not “that big of an issue if there’s nothing to hide.” Further attempts at dialogue have failed, according to the lawsuit, and Sloane has not been able to provide any law, statute or guideline of such a policy. No other counties in Pennsylvania require such a form to be filled out for tax refunds, the lawsuit states.
Since the impasse over the summer, the lawsuit claims that Sloane’s responses have reverted to “unprofessional, personal attacks” and other accusations against Flickinger. The controller is in charge of oversight of county assets and funds.
It’s not known how many taxpayers have filled out the forms or are still owed refunds from overpayment of property taxes, county property sales or delinquent tax payments. Flickinger, who is a fellow Republican and just won his second term in office this past November, could not be reached for comment Tuesday about how the issue is affecting his office’s attempts to send reimbursements to the public.
Reached by phone at her county office Tuesday morning, Sloane referred comment to her solicitor, Pat Seymour, who is with the Rudolph Clarke law firm based in eastern Pennsylvania. Seymour declined comment on the issue due to ongoing litigation.
In court documents, Turturice called the policy “illogical at best and illegal at worst,” and said it should be declared unlawful by the courts. The lawsuit is asking a judge to stop the controller from continuing the practice and cease enforcement of the policy to disburse all funds owed to taxpayers regardless of whether they filled out such forms.