The tax man cometh – with sirens and
flashing lights
Lori Borgman | Monday, February 09, 2009
When our oldest daughter was in college, she wrote
a book. (She’s smart.) Since I handle tax matters related to my
books, I offered to handle tax matters related to
her book. She agreed. (She’s not always smart.)
As she tells the story, her mother almost landed
her in jail.
Kids. They so exaggerate.
When you sell products in a state, you have to
register as a retail merchant. Retail merchants must pay retail
taxes. I paid my retail taxes but, in my never-ending quest for
inefficiency, forgot to pay hers. What can I say? I should have
had a V-8.
You’d think the state might appreciate that I
was busy, that she was busy, and that everybody has far too much
paperwork. They did not.
What they did do was send a snippy letter saying
that if she did not pay her retail taxes, they would issue a warrant
for her arrest.
I phoned the kid and told her not to worry if
she heard rumors about her being arrested, as I had immediately
filed her taxes and all was well. She responded by hyperventilating.
I keep wondering how all these big-name people
who owe hundreds of thousands of dollars live with the stress of
knowing that there are warrants on them. Maybe it’s what you call
a two-tiered tax system: Those who can sleep at night and those
who can’t.
A couple of weeks later, another letter arrived
saying our daughter was still delinquent on her taxes (not true)
and that a sheriff would serve a warrant.
I phoned the kid again. When I told her they couldn’t
find her tax payment, it was the scream heard ‘round the world.
I told her to have a good weekend and not let the fact that she
was a fugitive bother her.
The following Monday we promptly called the state
department of revenue. They assured us the payment had been received
and that the second letter had been sent in error. The nice lady
gave us her word that a sheriff would not be arresting our daughter
and said they send those letters to scare people.
It worked.
I think of this each time news breaks of yet another
high-profile celeb or politician owing back taxes. Didn’t Treasury
Secretary Timothy Geithner, who owed $443,000 in taxes, get a scary
letter? Maybe he did and he just doesn’t scare easily.
Rev. Al Sharpton and his business entities reportedly
owe more than $1.5 million in taxes and penalties. He doesn’t seem
scared. In fact, he seems like he enjoys himself.
The New York Post recently ran a tax-weasel list
of New Yorkers who owe back taxes. It was a virtual who’s who of
celebrities, designers, entrepreneurs and politicians. It’s like
being a tax cheat has become the new status symbol.
And if all your friends didn’t pay their taxes,
would you not pay yours?
Tom Daschle paid $128,203 in back taxes and $11,964
in interest last month. Nancy Killefer, tapped to serve in the White
House and the Office of Management and Budget has had a $946.69
lien for back taxes on her home since 2005. It makes you wonder
who takes the tax laws seriously.
Our daughter promptly paid $17 in back taxes,
along with a $1.70 penalty. We’re hoping she gets a cabinet position.
