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

[A. Dale]

He must have made some one. IRS needs to go after RAINGLE, and there BOSS.

[HARIS]

WELL....ITS NOT NICE TO SAY BUT HE IS GETTING A TASTE OF WHAT CALIFORNIA TAXPAYERS GO THROUGH DAILY WHEN THEY HAVE TO DEAL WITH THE FRANCHISE TAX BOARD. BOGUS FIGURES POP UP. COLLECTION ACTIVITIES. WHEN EVIDENCE OF PAYMENT IS PRODUCED TO STATE OFFICIALS THEY MOVE ON TO THE NEXT VICTIM. ALL FIGURES SIMPLY MADE UP. THEY NEVER ASK FOR PROOF TO BE SENT IN. SLEAZY. I HOPE THIS WAKES HIM UP AND LOOKS TO CLEANING UP THE MESS AND THE GANGSTER TYPE COLLECTION ACTIVITIES OF THE FTB. THANK YOU.

[Ric]

You cannot have a lien placed on property by the IRS without first having been informed about an assessed tax or penalty. Liens are not filed without the IRS making several attempts, by letter, to contact the taxpayer to collect the tax.

[Azaza3l]

When is the IRS going to investigate Charlie Reingold's illegal tax withholdings? 80K is a blink of the eye compared to Charlie's tax evading...

[David]

Arnold is going to have to step his tax-cheating game if he wants to be a powerful committee chairman like Charlie Rangel (D-NY). Tens of thousands ($) is so amateur. When you can cheat millions like Rangel, and not even lose your chairmanship, and never be charged with the felonies you have committed, then you are a pro (Democrats only need apply).

[American Citizen (at least the last time I checked)]

The government can put liens on our property, yet we cannot put liens on the government's property when we as a nation are on the verge of bankruptcy. What is wrong with that?

[Steve Kassel]

I have been a tax professional for nearly 22 years including five years as an IRS Revenue Officer and almost 17 years as an Enrolled Agent.

First, these taxes are against a business owned by Mr. Schwarzenegger, not him as an individual. If you look, you'll see that the liability is under an employer identification number NOT his Social Security Number.

Second, a penalty under IRC 6721 IS a penalty for failure to report certain information. It could be a penalty for one of his businesses not reporting wages on W-2 forms.

Third, IT IS likely that there is NO tax owed and chances are high that although this should have been resolved long ago, it will be cleared up in the next few days without anything being paid.

[Observer57]

Great! Now he qualifies for a job in the Obama administration!

[carlb]

so what the guy is worth gazillions of dollars. thats the cost of a hummer. his credit card probably could pay for it or he could write a check. governor i say to you load a truck full of pennies and take it to the tax office and tell them here it is! stinking girlie men. lol

[phlogiston]

Hmm. does the Governor have a personal financial crisis? These liens are usually filed only after there is an extended period without payment of the amount claimed due.

It would be sad indeed if a successful self-made businessman such as the Governor reputedly with a net worth in excess of $100 million at one time, has also suffered so much from the economic malaise that he can't pay a $79,000 tax bill.

Wait until the second hit of the crisis when the commercial real estate market collapses and investments by pension funds and insurance companies are affected. With millions of retirees with less or no income, the crisis will deepen.

But I suppose that when a government establishes a system for loans to be made and financed without reasonable prospect of repayment, there will be some effect on other parts of the system. So far the Chinese have supported us and are committed to protect their investments as withdrawal of their support would result in collapse of the dollar and compromise their current dollar holdings. They don't want to take such a loss just yet as their economy is also very fragile with some 200 million unemployed or underemployed.

Wait America, until the American dollar loses its international reserve currency status established at Bretton Woods. Then with our burgeoning trade deficit what will we use to buy oil? Prices will skyrocket as the dollar declines in value. It's been a nice ride, but with so many unemployed Americans and plants idle, productivity is down, and with less production our standard of living will plummet. It bodes ill.

Hi ho ho, and a Merry Christmas and Happy New Year to all.

[Sir Gareth]

Why the kid gloves treatment? For the little people financial assets are simply seized by the IRS.

Liens??? I've never heard of this type of gentle treatment at the hands of the IRS. Normally if there are no liquid assets in banks or brokerages houses to be seized, a fast sheriff's sale of real estate is conducted. No courts are needed for these kinds of administrative actions. The IRS simply acts on its own - at least for you and me.

[lorm]

The IRS SHOULD put a lien on Gov. Arnold Shriver and on his Sacramento cohorts. They've been leaning on California taxpayers long enough.

[Gandhi's Fist]

Just another lib ploy to besmirch a popular republican. You can bet your bottom dollar, the order came down from the top. $78,000.00 dollars--really--who do they think they're kidding? That's a poor day's residuals for Arnold, to imagine in the pile of loot that is Schwarzenegger Inc. that this piddling amount is a big deal is something only a lib could get steamed about and if this is the case, then I say--who cares.

What is of concern is abuse of power. THAT is the real story here. Using the IRS to get a someone due to political belief is totally old school Soviet Union. Arnold claims not notice was given, that the amount was levied would due process. I'd put his word ahead of a dem controlled IRS any day of the week.

[robertg222]

Arnold should just give the IRS the keys to California. Although I don't know if CA is worth $79k these days.

[creig speed]

It's nice to see that the I.R.S. can get anyone's attention immediately. The Governor's many business involvements probably is just an oversight of someone he hires to take care of his taxes. I don't see a man in his position would try to cheat on $80,000 of unpaid taxes. If it's legitimate he will pay the debt and penalties.At least there is 1 government agency though that is not intimidated by any person's stature.

[fed up]

Oh good grief!!!

we all KNOW he IS guilty! He is a liar like every other politician! get a clue!!!!