Iowa City school district won't pay IRS fine

The Iowa City school district will get back the $25,000 penalty it paid the Internal Revenue Service last year, the district announced Wednesday.

The IRS abated the amount and no further action is necessary by the district, according to a news release.

Superintendent Stephen Murley said in August that federal officials had indicated the district had a good chance of being refunded the $25,000 if the mistake was not part of a pattern.

The fine came after the district was one day late making a payroll tax payment in spring 2011.

The late payment was one of the reasons Murley requested an outside audit of the district last fall. The results of that audit were released Tuesday and included a long list of issues auditors said needed to be fixed.