Oakland Mayor Ron Dellums and his wife Cynthia Dellums owe at least $239,000 in back income taxes, according to the U.S. Internal Revenue Service. Sources say the couple’s serious financial troubles could rule out a reelection bid next year and force him to return to his once-lucrative Washington D.C. lobbying practice.
The IRS says the Dellumses failed to pay enough personal income taxes in 2005, 2006, and 2007. On October 14, the IRS placed an official lien against all of the couple’s personal property for failure to pay adequate taxes in each of those years, according to records filed with the Alameda County Recorder’s Office. Typically such liens remain in place until the back taxes are paid off.
In a statement made through his spokesman Paul Rose, Dellums disputed that he and his wife owe as much money as the IRS contends, although he acknowledged that they have not paid as much taxes as they should have. “There are previous disagreements with the IRS, regarding the amount owed,” Dellums said. “The issue is being addressed and the matter will be resolved in short order.”
Jesse Weller, a spokesman for the Bay Area office of the IRS, declined to comment on the Dellumses’ case, citing the agency’s rules on taxpayer confidentiality. But a knowledgeable source says Dellums and his wife have faced financial difficulties ever since they moved back to Oakland and he took over as mayor. “Their financial issues have weighed heavily on his mind from Day One,” the source said. “There’s no question.”
The mayor’s federal income tax delinquency doesn’t speak well for his ability to steward public resources in a city facing severe financial challenges. It also raises serious doubts about his ability to make good decisions. And being a tax delinquent violates his civic duty as both a public official and a citizen. “Public officials are supposed to be leaders for the rest of us,” noted Oakland good-government activist Charlie Pine, a frequent critic of the mayor.
Revelations about the mayor’s failure to pay taxes also could sink his chances of winning reelection - if he still harbors any plans of running again.
Never trust in the amount IRS orders you to pay. Nine times out of Ten its over what you truly owe.
credit: msnbc
Tags: Oakland Mayor Fails to Pay Taxes, Ron Dellums, Ron Dellums Fails to Pay Taxes
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The disguised threat in all of this is that as people struggle to repay borrowings the knock on effect of all of this then emerges as excpenditure tightens up with less available cash being spent and more hoarded…and so on. The end result if Central Bankers don’t get it right is the complete break down of the financial system.