Richmond Finance Manager Instructs Staff to Withhold Tax Credit Information, Leaving Business Owners Unaware of Overpayments

In a recent revelation, an email obtained by The Times-Dispatch shows that a manager in Richmond's Department of Finance directed an employee not to include information on tax overpayments in reports used to review taxpayer accounts. This decision has negatively impacted local business owners, leaving them unaware of how much they owed the city or how much the city owed them. Tax Credit Information Withheld
In the email, Asia Spratley, a program and operations manager in the finance department, advised another employee not to include credit balances when running detailed receivables reports. City spokesperson Margaret Ekam defended the directive as part of the city's standard operating procedure, focusing on compliance with state and local laws. However, multiple business owners revealed that the absence of credit balances in reports led to payment letters and billing statements that did not inform them of overpayments and owed refunds. Business Owners Left in the Dark
Jason Roop, a business owner, shared his experience of being unaware of an overpayment leading to penalties and subsequent struggles to get a refund. Another business owner, Jeffrey Marks, had to drive hours to resolve incorrect tax assessments and overdue payments due to missing notifications. City's Inaction Criticized
Marks criticized the current administration, blaming Mayor Levar Stoney for the ordeal and delayed refunds. Ekam admitted that several staff members in the tax compliance/audit unit had left the finance department, which is undergoing process streamlining and staff training to address past deficiencies. An ordinance passed by Richmond's City Council requires the finance department to notify taxpayers of credits on their tax accounts, but the extent of notifications and refunds remains unclear. Investigation Stalled
An investigation into the handling of tax overpayments by the finance department was halted, with conflicting statements from Richmond's inspector general and city attorneys. Despite claims of clearance from wrongdoing, transparency and accountability in addressing refund issues remain a point of concern for taxpayers. The impact of such practices on business owners and the city's financial integrity underscores the need for improved procedures and communication in tax administration. A Call for Transparency and Accountability
As Richmond grapples with the fallout from withheld tax credit information, the community demands transparency, swift action, and accountability from city officials. The saga serves as a cautionary tale for municipalities to prioritize taxpayer communication, fairness, and efficiency in financial management to uphold public trust and fiscal responsibility.