In 2014, employees of the city of Hutto may have received a letter from the Internal Revenue Service noting the city failed to make payments and file reports.

At Thursday’s Hutto City Council meeting, City Attorney Mike Shaunessy said some employees have received notices that included the possible seizure of assets. Shaunessy said he was asked to investigate the issue by City Manager Odis Jones.

“Under prior leadership, prior council and prior administration, in 2014, the city failed to pay the appropriate payments for its employees or made [payments] and failed to report it,” Shaunessy said.

Shaunessy said it appears the payments have been made, but the appropriate paperwork was not filed. He also said the problem wasn’t addressed after the city received notices from the IRS in 2014, 2015 and 2016.

“Your [human resources] department is helping the employees who got those notices,” Shaunessy said. “HR sent out a letter this week. It doesn’t look too cumbersome.”

The city, Shaunessy said, has requested tax transcripts from the IRS to confirm payment has been made.

“This city council and this city administration inherited [this issue],” Shaunessy said.

Jones said more information will be presented to the city council during an executive session later in the meeting.