IRS files $79,000 tax lien against Schwarzenegger [Updated]

The Internal Revenue Service has filed a federal tax lien against Gov. Arnold Schwarzenegger for nearly $80,000, public records show.

The lien was filed May 11 at the Los Angeles County recorder's office for $79,064, according to a record in an electronic database that includes lien filings. The record does not indicate what property the lien was placed on, but it lists the debtor as Arnold Schwarzenegger with the governor's home address in Brentwood.

[Updated at 11:42 a.m.: A federal tax lien would be attached to all of the governor’s properties, according to the IRS.]

The lien was reported this morning by TMZ.com, which posted a copy of a lien document that says it is from the county recorder's office. That document shows that Schwarzenegger owes $39,047.20 from 2004 and $40,016.80 from 2005. The document also lists a section of the IRS code that suggests the debt may be penalties for a failure to report certain business transactions.

Schwarzenegger's spokesman, Aaron McLear, said in a statement that the "governor has paid his taxes in full and on time."

"No one, including the IRS, has notified the governor of any issues whatsoever with his taxes," McLear said. "We are contacting the IRS to determine if the document in question, which appears to be a penalty for missing info and not for unpaid taxes, is legitimate and if there is any discrepancy to resolve."

-- Michael Rothfeld in Sacramento

Comments

[TheMadKing]

Funny. I just got whacked by the IRS on my 2004 and 2005 federal returns too. The principal is only about $225, but with interest and penalties it's $778. Thanks for informing me in a timely fashion, IRS! Tell me this money-grubbing LibDem puke government isn't scraping the bottom of every barrel for every buck they can. I'm going over every tax record I have before I send them one cent!

Do YOU trust them?

And unlike Ahnold, I cay say that with a clear conscience. I didn't just illegally and unconstitutionally jack every employee's payroll withholding an additional 10% in the State of California for "short-term" interest-free loans. Hey! Does anyone know if the IRS takes IOUs? If the Governator hands them out, they must be good, right? "I'll be back...with an IOU."

[Original Intent]

I highly doubt the veracity of this story. The IRS rarely files a true lien. A true lien would be IRS form 668-B with an attached court order. A Notice of Lein or Levy from the IRS is merely a piece of paper from the IRS saying that someone owes money. This is not true for the class of government workers who are described in 26 USC 3401(c). The IRS need not file a notice of lien with a court order for those who are within that class of government worker. It is doubtful that Arnold fits within that narrowly defined class of government worker, so all we have here is more IRS shenanigans.

[Independent]

But it's only Democrats that don't pay their taxes, right Republicans?

[bob thomas]

you report a lien of "nearly $80,000"and in the NEXT LINE you report "The lien was filed May 11 at the Los Angeles County recorder's office for $79,064".OOO...he`s such a bad man...

[John]

Does this qualify Arnold for a post in the Obama Administration?

[Roger]

So, he's behind on taxes or something.
Sounds like he was just vetted for a Obama cabinet position.

[aisxray]

Leave it to a .com to break the story.....

[Osamas Pajamas]

Look at it this way. The IRS is America's #1 terrorist group, and along with the ATF, it should be abolished. The IRS is a great weapon for destroying your political enemies. Didn't Arnold poke fun at Barak Hushpuppy OhBummer for being a skinny girl?

[Osamas Pajamas]

I think it's payback time for OhBummer --- anything to tarnish the image of an adversary.

[Hostile Knowledge]

If Schwarzenegger does owe the IRS $79k, why didn't they just contact him and say so? That's pocket change to him.

It's a political smear job.

[Bulldog]

I bet anything Arnold does not owe anything. A similar thing happened to me. Somehow even using Turbotax some of my stock sale was over reported. Sounds ok because I would have overpaid in taxes. However, I used a stock loss to offset the taxes but then that was not legal because I did not really have that much stock sold to offset against it. The next thing I knew I was getting twentry thousand dollar bill for owed taxes and penalties from years back.

The point is that our tax code is so hard to understand I bet everyone has made big mistakes and not even known it.

What we need is a flat tax. I think if we had a flat tax I would feel very happy paying my taxes because I would know it was "fair". The rich guys have lawyers and accountants that know ever loophole. The rest of us either pay an accountant or do it ourselves with Turbotax like software.

The current system is flawed and I hope Arnold's experience shines a lite on it so we can get it changed.

[Buster Brown]

Astounding how many see this as some sort of political maneuver punishing Arnold for being a Republican - albeit a grossly illegal punishment - when the Republicans themselves have denounced the man as a liberal Dem passing as a Republican.

Given the man's record in office, rendering as secret records that others before him held as public records, making personally enriching deals with people who have business before the state, staffers who run amok under his name, promises broken, denied and then admitted to when the proof was overwhelming, right through to the petty signs that he and his wife consider themselves far above the mere ordinances and minor laws to which the rest of us are held accountable - all fixed by writing a puny check and/or by issuing a tired movie quote - and ANYone is surprised by this latest?

That he was elected at all stands as testimony to the stupidity of voters, their ignorance, and their giddy willingness to elect anyone who will tell them precisely what they want to hear: "You can have more, and better, without having to pay more - cutting the waste and fraud will do it!" California voter dupes bought a production worthy of a Showest convention, and got what they deserved.

[Carrie]

He should resign. He's the worst Governor in US history.

[Dog Breeds]

Its nice to know that he isn't getting any special treatment. Thats one heck of a penalty. What kind of business deals has he been making!

[PAULINPA]

LET HIM USE SOME OF THAT KENNEDY MONEY. HE WON'T DO THAT . HE WILL LET HIS BUDDY OBOZO BAIL HIM OUT. THAN AGAIN HE MIGHT USE THE CHARLIE RANGEL MOVE AND CLAIM HE WAS CONFUSED.

[joe]

Hey, idiots who call themselves Democrats and Republicans the IRS can levy a tax on you without due process! Wake up idiots, your all slaves to the Gov't fools. You own nothing, the Gov't owns it all.

[joe]

Hey, idiots who call themselves Democrats and Republicans the IRS can levy a tax on you without due process! Wake up idiots, your all slaves to the Gov't fools. You own nothing, the Gov't owns it all.

[Another IRS Mistake]

I would not be surprised if this is an error. The federal government makes lien mistakes everyday and it's up to the consumer to get it fixed. It's a pain and they even have a special form for this... Instead of doing this right they make us go through the ringer for their mistakes. This is why government control is so dangerous. So what else is new right!

[Chrisfmchi]

Ya he can pay this off in a few minutes.

nice to see you made a story about it.

[Chrisfmchi]

Ya he can pay this off in a few minutes.

nice to see you made a story about it.

[Diogenes]

This can only mean one of two things. Either (1) Obama is considering Schwarzenegger for an Obama cabinet position, 0r (2) the democrat party wants to make sure that Ahhhhnold won't get the Republican nomination for governor (or anything else) from this day forward.

[Buddy In Pa]

Gee, Notice how all rhe Republicans are Disloyal to Their OWN...

Blaming The Democrats for Arnold's Tax Evasion...He is A Registered Republican that They the Republicans could not STOP GUSHING over when His Halo Was Not Tarnished.

Now they EVEN REFUSE to ADMIT HE IS THEIR OWN.

ARNOLD Is ONLY Practicing What the Republican Party is ALL ABOUT >>>GREED BABY>>>and ME FIRST>>>AND to HELL WITH ANYBODY ELSE !!!

The Republican Manifesto !!!

[Rufus]

Come on, $80,000 for Arnold is small change. Obviously an error.

[chickc]

Good! He's been raiding small business accounts for state back taxes over the last 6 mos. and seizing all operating money while they're in a down sales period. Some of that money needs to help pay mortgages, but his offices have stated that they don't care, so good, raid his accounts and let him see how it feels.

Stupid jerk! Worthless governer.

[Chas]

I bet most of the chuckleheads making pissy comments on thus issue file 1040-EZ forms yearly. Figures. I do relish the fact that you seem upset about the current administration. Poor losers act like this. I hope you raise your family to have some form of decorum and not be cry babies who throw verbal temper tantrums and do other spoiled sport acts.

If you were my child I would spank your ass, tell you to straiten up send you to bed with no dinner.