PINEVILLE, La.  - The IRS is demanding the City of Pineville pay about $1.2 million in back Social Security payments that city officials don't feel should be owed.

Mayor Clarence Fields says the city is studying its options to appeal the IRS' determination that the city and its firefighters should have been making Social Security payments for the firefighters for 35 years - even though the firefighters are in a state retirement system.

The IRS is trying to collect for a three-year period that amounts to approximately $1.2 million.

If the city ends up having to pay that, it would be a severe blow to the city's finances. Fields says a decision against the city could potentially force the city to take out a loan to cover the payment.