The Arkansas Scholarship Lottery owes the IRS nearly $100,000 in penalties and interest because of late payments last calendar year on taxes withheld from lottery winners, the director said in a letter.
In the letter Ernie Passailaigue sent to the Lottery Commission chairman, he said the lottery's departing chief financial officer, Philip Miley, told senior management about the penalty on Wednesday and called it a "routine accounting function."
Miley asked the IRS for a waiver request, which was denied on the grounds that there was a pattern of similar penalties.
Read tomorrow's Arkansas Democrat-Gazette for full details.