County staff report possible off‑book payments by justice of the peace; court to review in closed session

County staff told the Commissioners Court they are investigating whether a justice of the peace made cash or cash‑alternative payments to a legal clerk outside of approved payroll processes. The court did not take formal action in open session but agreed to revisit the matter in closed session.

Human Resources reported it received information indicating Judge Vincent Vanagoni (Justice of the Peace, Precinct 4) may have provided cash supplements to a clerk, Sandra Falcon, rather than processing them through county payroll and withholding. HR said it sent formal letters on April 17 seeking confirmation; the clerk replied that she would consult her attorney and would cooperate as appropriate.

HR warned that cash payments for county work are treated as taxable wages under IRS rules and are not de minimis fringe benefits when made in lieu of compensation. ‘‘There is no allowance for an employer to give a nontaxable gift to an employee for services rendered,’’ said county counsel and staff during the presentation. The county must ascertain whether payments occurred, the amounts and tax years involved, and whether employee and employer withholdings and retirement contributions were made.

County leaders discussed remedies if payments are confirmed, including (1) repayment by the employee, (2) the elected official remitting withholdings and employer contributions to the county, or (3) other corrective bookkeeping. Commissioners asked whether law‑enforcement referral — including the sheriff’s office or Texas Rangers — or formal internal investigation was appropriate. Staff recommended pursuing cooperation from the elected official and department head and, if necessary, conducting an official investigation; the court agreed to take the matter into closed session to consult with counsel about legal strategy.

Next steps: the court recessed into closed session under Texas Government Code to consult with attorneys and consider legal options. No formal disciplinary or criminal referral was recorded in open session; staff will report back with findings and recommendations consistent with legal advice and county policy.