BLYTHEVILLE — A prosecutor in northeast Arkansas has closed an investigation into the city of Blytheville's failure to pay $2 million in payroll tax withholdings.
Prosecuting Attorney Scott Ellington said in a news release Friday that the matter was a case of poor management rather than criminal wrongdoing.
Ellington says state and federal investigators also inquired into city purchases of chemicals for the water department.
But, Ellington said, there wasn't any evidence that the city was being overcharged or that any inappropriate payments were made by the chemical vendor to city officials.
In a letter to state police, Ellington said Blytheville's failure to pay employee withholding taxes resulted in more than $1 million in interest and penalties assessed by the IRS in addition to unpaid withholding taxes in excess of $2 million.