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Lancaster County, IRS at Odds Over Federal Funds

irsLINCOLN, Neb. (AP) — Lancaster County officials are turning to U.S. Rep. Jeff Fortenberry for help to stop the IRS from withholding federal funds meant for the eastern Nebraska county.

The IRS has withheld thousands of dollars from Lancaster County since January 2013 because of debts owed by the Lancaster Rehabilitation Center to the federal veterans affairs department.

The county sold the center to Illinois-based Altitude Health Services in 2010. The VA agency still considers the county to be the center’s owner.

The federal VA department still associates the county’s tax ID number with the center. It has sought repayment by having the IRS withhold the money.

Altitude Health has been paying the county money to help replace the lost federal funds.

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