The IRS has levied a lien of more than $500,000 against School Administrative District 17 with the Oxford County Register of Deeds, but school officials say it’s related to a federal error that won’t cost local taxpayers.

The May 4 lien, which gave no explanation, amounts to $516,185.39. It refers to penalties and interest for 2022 Affordable Care Act forms that were required to be filed to comply with federal law.

Controversy erupted on social media May 15 after officials in area towns learned of the lien. When some residents posted a copy of the lien on Facebook it led to a frenzy of speculation that SAD 17 is delinquent on payroll taxes, among other rumors.

Superintendent Heather Manchester acknowledged the lien in an interview Monday, saying the matter is being resolved at no cost to the school district or taxpayers.

“District records, including a file name and receipt identification number, verify that a filing was submitted to the IRS on March 21, 2023 prior to the March 31 deadline,” Manchester said in an email statement. “The district shared these records with the IRS in July of 2025, immediately after it first received a failure to file notice from the agency.”

Manchester said the district’s finance team worked with an IRS officer based in South Portland early this year to “resubmit relevant records and resolve the issue.”

“Earlier this month the district received instructions to request an abatement from the IRS that will resolve this error and release the lien,” Manchester said. “SAD 17’s formal request for abatement will be submitted next month.”

A full abatement of the tax penalty and a release of the lien is expected, with no cost to the district or its taxpayers, Manchester added.

SAD 17 board of directors Chairman Troy Ripley confirmed the district has been working with the IRS to find the submitted forms. Ripley noted that “it’s a paperwork issue that’s being reconciled with the IRS.”

Ripley said the issue is in the hands of the IRS, and pointed out that the IRS takes its time in that process.

No taxes were involved, Manchester said.

“It is a complex process, but we have been making good progress toward resolving the issue and requesting a full abatement since we began working directly with an IRS revenue officer here in Maine,” Manchester said. “District officials plan regular updates to the School Board’s Finance Committee in its public meetings until the issue is resolved.”

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