Philly audit finds $3.4M in taxes never deposited

PHILADELPHIA (AP) - March 15, 2010

Philadelphia officials have recovered more than $3 million in wage taxes that should have been deposited in the city treasury in 2005 - but never were.

City Inspector General Amy Kurland said Thursday the wage tax payments were made five years ago by the Pentagon for Department of Defense employees who work in Philadelphia.

But the money never made it to the bank. Kurland says her office contacted Defense officials, who reissued the checks.

Kurland says the discrepancy was discovered as part of an ongoing corruption investigation into a former municipal employee.

Her office is still looking into how the funds were misplaced, and whether any crime was committed.

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