Gould Mayor Earnest Nash announced Wednesday that the city and the Internal Revenue Service had reached a deal on the city’s nearly $300,000 tax liability, most of which is for unpaid payroll taxes.

The IRS determined that the city of 800 is unable to pay the taxes and agreed to give the city some breathing room.

While the IRS will no longer be seeking payments on the back taxes owed, interest and penalties will continue to accrue. If timely payments on current and future taxes are not made, Gould will once again be responsible for the back taxes that the city owes. If Gould stays on track with its payments, all of the debt will be forgiven completely, according to a news release.

In July, the city made national news when the Gould City Council adopted an ordinance making it illegal to form any group without its approval, and separate measures making it illegal for the mayor to meet with any organization in or outside of the Gould city limits without the council’s approval and requiring an organization to cease to exist. Arkansas Municipal League attorney Mark Hayes told the New York Times he’d never seen an ordinance like the one Gould adopted.

The same month, Mayor Earnest Nash was attacked, subsequently leading to the arrest of a Gould councilwoman’s bothers.