State audit reveals former Yellow Springs employee owes over $19K for late federal tax deductions

YELLOW SPRINGS, Greene County — Multiple former Village of Yellow Springs officials have been listed in a recent finding for recovery issued by the Ohio Auditor of State after not paying federal tax withholdings on time.

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The finding for recovery of nearly $20,000 was issued on Tuesday for the 2023 audit period.

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Auditors say former Yellow Springs finance director Matt Dillion didn’t send payroll withholdings and filings to the federal government on time, which led to late fees, penalties, and interest.

Dillion and his bonding company, The Cincinnati Insurance Group, are responsible for approximately $19,512.40. The following penalties are listed below:

$4,657.30 for late filing of one Federal 941 Form
$5,002.19 for seven instances of failure to submit withholdings
$9,520.00 for the incorrect filing of one Form 1099
$332.91 for seven instances of interest for failure to pay IRS penalties

“These charges would have been avoided had the funds and forms been remitted by the required due dates,” auditors say.

The finding for recovery also lists former Yellow Springs Village Manager Josue Salmeron and former Finance Director Amy Kemper.

Auditors say both Salmeron and Kemper were responsible for submitting a portion of the penalty payments to make sure the interest stops increasing.

On Feb. 21, 2025, Kemper repaid $136.13 and Salmeron repaid $156.95, according to the finding for recovery.

This repayment brings Dillon’s total to $19,219.32.

“The failure to pay federal tax withholdings and submit forms timely is considered gross negligence. Late payment fees incurred through gross negligence are illegal expenditures which do not serve a proper public purpose,” auditors say.

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