Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, March 29, 1994                   TAG: 9403300015
SECTION: CURRENT                    PAGE: NRV-6   EDITION: NEW RIVER VALLEY 
SOURCE: New River Valley bureau
DATELINE: PULASKI                                LENGTH: Short

TOWN MAY PAY EMPLOYEES FOR W-2 ERROR

The excess refunds were calculated because of an error in a town computer program for its W-2 Wage and Tax Statement forms.

``Because the programming error was not found by the town and because employees spent the refunds in good faith,`` said Town Manager Tom Combiths, ``the Town Council feels that, regardless of legal liability, it is only fair that the town, as the employer, attempt to assume the burden of this impact if at all possible.''

While the town may have no legal obligation, Combiths said, council feels that shouldering the responsibility for resolving the problem ``is the only fair thing to do since its employees, in filing their taxes, relied on incorrect W-2s which were given to them by the town.''

The refunds were made for the years 1990 through 1993.

To minimize the cost to the town, Combiths said, efforts will be made to recover costs by looking into the possibility of third-party liability and by negotiating with the Internal Revenue Service and Virginia Department of Taxation.

Some employees had already sent in their tax forms this year as well with the erroneous data, and will have to file amended returns. The town will work with those employees on a case by case basis.