Arkansas Lottery Commission out of hot water with Uncle Sam.
A penalty was reversed putting thousands of dollars back into the scholarship fund.
“The newness and fast pace of the start up caused us to inadvertently violate some of the deposit policies of the IRS," said Bishop Woosley, Director of the Lottery Commission.
The Arkansas lottery found out the hard way, receiving a more than a $100,000 penalty.
A red flag that could have cost some students their scholarships.
But when attorney Carrold Ray heard the commission's dilemma, he got his firm to take the case at no cost and won a reversal on the penalty.
"Once we were able to show that that was the reason for being late, the IRS applied its' normal guidelines to remove the penalties," said Ray.
Ray says he felt compelled to do this because both his daughters are recipients of the scholarship as well. Now more than one hundred thousand dollars is going back into the scholarship fund.
The Commission says it's on the right track now.