{"id":412,"date":"2009-11-01T19:26:23","date_gmt":"2009-11-01T19:26:23","guid":{"rendered":"http:\/\/old.sommers-taxapedia.com\/archives\/?p=412"},"modified":"2012-10-26T19:28:30","modified_gmt":"2012-10-26T19:28:30","slug":"governators-tax-lien","status":"publish","type":"post","link":"https:\/\/sommers-taxapedia.com\/archives\/governators-tax-lien\/","title":{"rendered":"Governator&#8217;s Tax Lien"},"content":{"rendered":"<p><strong>Introduction<\/strong><\/p>\n<p>In May, IRS slapped California Governor Arnold Schwarzenegger with a $79,000 tax lien for failing to pay penalties assessed against him during 2004 and 2005.<\/p>\n<p>Note: In October, IRS filed a lien against another politician, Oakland Mayor Ron Dellums, for $240,000 in delinquent income taxes during 2006 and 2007.<\/p>\n<p><strong>Tax Lien<\/strong><\/p>\n<p>An IRS tax lien attaches to all assets and usually ruins one&#8217;s credit score, since no rational lender will extend credit when the government has a blanket claim against all assets owned by a taxpayer. IRS may then levy (forcibly collect) and sell the assets to pay tax debts without first suing in court<\/p>\n<p><strong>Appeal<\/strong><\/p>\n<p>Once IRS files a tax lien, a taxpayer receives notice of appeal rights. If a taxpayer files an appeal within 30 days, IRS generally suspends collection until the process is completed<br \/>\nEvidently Schwarzenegger disregarded the appeal process, resulting in the tax lien.<\/p>\n<p><strong>Tax Penalty<\/strong><\/p>\n<p>Schwarzenegger was assessed penalties under IRC Sec. 6721, failure to file information returns (typically W-2 or Form 1099), a $50 penalty for each delinquency. Judging by the size of the fine, the failure must have involved thousands of employees or independent contractors<\/p>\n<p>He probably was listed as the &#8220;responsible person&#8221; for several major business or investment ventures.<\/p>\n<p><strong>Conclusion:<\/strong><\/p>\n<p>While the Govenator&#8217;s spin-doctors claim that the tax lien did not involve income taxes, he must have ignored the series of escalating IRS warnings that preceded the filing.<\/p>\n<p>Perhaps, Schwarzenegger was not legally responsible, but he should have appealed. Then, IRS would have to establish that he was indeed responsible. Instead, he chose to blow-off IRS, which is often a bad idea.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction In May, IRS slapped California Governor Arnold Schwarzenegger with a $79,000 tax lien for failing to pay penalties assessed against him during 2004 and 2005. Note: In October, IRS filed a lien against another politician, Oakland Mayor Ron Dellums, for $240,000 in delinquent income taxes during 2006 and 2007. Tax Lien An IRS tax <a href=\"https:\/\/sommers-taxapedia.com\/archives\/governators-tax-lien\/\" class=\"more-link\">&#8230;Continue reading<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[59,58,57],"class_list":["post-412","post","type-post","status-publish","format-standard","hentry","category-general-tax-information","tag-arnold-scharzenegger","tag-governor","tag-tax-lien"],"_links":{"self":[{"href":"https:\/\/sommers-taxapedia.com\/archives\/wp-json\/wp\/v2\/posts\/412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sommers-taxapedia.com\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sommers-taxapedia.com\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sommers-taxapedia.com\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sommers-taxapedia.com\/archives\/wp-json\/wp\/v2\/comments?post=412"}],"version-history":[{"count":1,"href":"https:\/\/sommers-taxapedia.com\/archives\/wp-json\/wp\/v2\/posts\/412\/revisions"}],"predecessor-version":[{"id":413,"href":"https:\/\/sommers-taxapedia.com\/archives\/wp-json\/wp\/v2\/posts\/412\/revisions\/413"}],"wp:attachment":[{"href":"https:\/\/sommers-taxapedia.com\/archives\/wp-json\/wp\/v2\/media?parent=412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sommers-taxapedia.com\/archives\/wp-json\/wp\/v2\/categories?post=412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sommers-taxapedia.com\/archives\/wp-json\/wp\/v2\/tags?post=412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}