Maine City of Biddeford Faces More Than $700K in IRS Penalties

The City of Biddeford is facing more than $700,000 in penalties from the Internal Revenue Service due to late tax filings.

According to WGME, City Manager Truc Dever says the fines are tied to a former employee who failed to submit required IRS paperwork for the 2020 and 2021 tax years. She also pointed to significant turnover in the city’s finance department during 2020, which allowed several filing issues to go unnoticed.

This is not the first time Biddeford has been penalized. In March, the city was hit with an additional $300,000 fine related to similar issues, the news station reported.

Despite the penalties, Dever emphasized that the city’s overall financial health remains stable and that steps are being taken to prevent future problems, telling WGME in part,

“I can assure you that the city’s financial standing is solid,” Dever said. “The administration and council currently in place are highly focused on ensuring our finances are in good order and that we are fully compliant with all IRS rules and filing requirements.”

Dever added that the city has since hired a new finance director and a forensic accountant to review past filings and work with the IRS in an effort to reduce or waive the fines.

The news station explained that City officials say the goal now is to resolve the outstanding penalties and strengthen internal processes to ensure future compliance.