Paying IRS debt, says Fort Smith’s Sen. Files

Sen. Jake Files, R-Fort Smith, the chairman of the Senate Revenue and Taxation Committee
Sen. Jake Files, R-Fort Smith, the chairman of the Senate Revenue and Taxation Committee

Sen. Jake Files, R-Fort Smith, the chairman of the Senate Revenue and Taxation Committee, said Friday that he’s working under a payment plan to resolve a federal tax lien for more than $111,000 against a company owned by him.

The Internal Revenue Service filed the lien against Foster, Files & Harris LLC of Fort Smith on Nov. 10 for unpaid payroll and unemployment taxes, according to records in the Sebastian County clerk’s office. The firm provides payroll services for Files’ FFH Construction, according to Files.

On Dec. 4, Files said he expected to resolve the federal tax lien against the company in the next 30 to 45 days. The

Arkansas Democrat-Gazette

originally reported on the lien in December.

At that time, Files said 2014 was “a challenging year” for his construction-industry company and his business was affected by his absence while he attended the 2015 Legislature’s regular session.

Files said Friday in a written statement: “There is a process in place for those who get behind on business tax matters to work through the balance with a payment arrangement that is agreed on by the Treasury and the business owner.

“I have paid a significant amount down and am currently on that standard arrangement and look forward to getting this matter behind me,” he said in the statement.

“Anyone who has been in business knows the challenges that are faced daily managing cash flow, incoming work, the work force, and even things out of one’s control, and I have been contacted by many who were in a similar situation that I was in. They worked through it, and I will also,” Files said.

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