From today's local Cincinnati paper:  Butler Dismayed by IRS Finding It Owes $500,000:

Butler County might have to pay $500,000 in back taxes for not reporting the use of county-issued cell phones, uniforms and cars as employee benefits.

The IRS has been reviewing county books from 2005 to 2007. It found, according to county officials, about $1.5 million in benefits that should have been reflected on employee taxes. The IRS has asked Butler County to pay a third of that amount.

Calling the policy a "money grabber," Commissioner Greg Jolivette said it doesn't make sense to take away money from a county in need when the federal government plans to spend billions to create jobs. "I think it's wrong to go after the taxpayers, especially at a time when everybody's budget is so critical. Our budget is critical. We're laying off people," he said. Jolivette is asking for an exemption on the taxes owed. If that isn't possible, he said he wants part of the massive federal stimulus plan to trickle down and help pay the costs.