The Arkansas Scholarship Lottery has a big money problem on its hands with the IRS. Apparently, the Lottery owes $99,673.29 in penalties and interest on 2010 payments paid late to the Internal Revenue service.
Chief Financial Officer Philip Miley, who will leave his post in September, just disclosed this information to Lottery Director Ernie Passailaigue Wednesday. He received the notice from the IRS on the late payments in April.
The IRS told the Lottery it is supposed to have paid taxes on certain winnings one day after a win. However, the Lottery had been making payments weekly.
In a memo to the lottery commission, Passailaigue says the IRS appears to have misunderstood when the deposits for 2010 were due. He goes on to say a future meeting with the IRS should clarify the matter.