PREVIOUS COVERAGE | IRS: Don’t give Bradenton Prep money

BRADENTON — Parents with children enrolled at Bradenton Preparatory Academy are being told to turn over money they owe the financially troubled school to the Internal Revenue Service — or face possible financial penalties.

The IRS directive, contained in a December letter to parents, has prompted some to pull their children from Bradenton Prep. It also has jeopardized the school’s plans to emerge from its financial woes, which include mortgage foreclosure lawsuits and vehicle repossessions.

Those woes deepened last week, with the Better Business Bureau receiving complaints and state revenue officials accusing the school of not paying unemployment taxes.

The IRS letter, dated Dec. 10, tells parents that The Children’s Place Inc. — the school’s corporate owner — owes at least $1.25 million in unpaid payroll taxes, late fees, interest and penalties from 2007 and 2008. Those receiving the notice are told to turn over any school assets in their possession, including tuition payments.

“This levy requires you to turn over to us this person’s property and rights to property (such as money, credits and bank deposits) that you have or which you are already obligated to pay this person,” the letter states.

Those who don’t comply “would be subject to penalties from the IRS, pretty serious penalties,” said Darrin T. Mish, a Tampa tax attorney who is not involved in the Bradenton Prep case.

Mish said the IRS frequently uses the notice to pressure taxpayers, especially those who are seriously delinquent or have ignored repeated payment demands, to pay or make payment arrangements.

“It’s a very aggressive move by the IRS,” he said.

An IRS spokesman declined to comment, citing the agency’s policy of not discussing individual taxpayers or cases.

Edward Vogler II, the school’s attorney, said the IRS notice is “disconcerting” and could hinder the school’s plans to solve its financial problems.

“Any business with cash-flow problems will have a lot of creditors,” he said. “It’s our job to work this out, and that’s what we’re trying to do. In the meantime, everyone who is a creditor is trying to make sure we’re aware of them.”

In a Dec. 13 e-mail to parents and staff, the school’s new majority owner said the IRS notice was “unsettling” and said the school had submitted revised and corrected tax returns.

“We are just awaiting approval for the revised figures and I have set aside the necessary funds for our attorney to negotiate the settlement,” Hendrik J. Lamprecht said in the e-mail obtained by the Bradenton Herald. “SHOULD YOU REQUIRE assistance with regard to the legitimacy of a lien on FUTURE DUES please do not hesitate to contact us IN WRITING to provide us with the details of our Tax Attorney and our Corporate attorney, both of which are well respected and have a history of success in this field.”