State's business barker pays debt to IRS
Advertising executive Mark Petrosky owed $138,782 in income taxes, according to the IRS.
Petrosky heads a company responsible for a flurry of award-winning ads featuring actor Jeff Daniels that tout the tax and lifestyle benefits of living and working in Michigan. It is the largest business marketing initiative in Michigan's history.
Petrosky is CEO and partner of DP+Company in Farmington Hills, which two years ago was the low bidder on a state contract to helm the advertising campaign. By the end of fiscal year 2009, his firm will have been paid more than $4.9 million for its advertising work, according to Bridget Beckman, spokeswoman for the Michigan Economic Development Corp.
What was owed:
- The IRS filed a $138,782 lien against Petrosky and his wife on Aug. 20 for unpaid income taxes. According to the lien, which you can see by clicking here, they owed the money from 2006.
His side: Petrosky paid the tax debt today, the same day he was contacted by The Tax Watchdog. He said the tax debt was a personal issue and "an unfortunate mistake for me." It happened because accountants and a business manager deposited money into the wrong account, he said.
He did not elaborate.
Petrosky learned the lien had been filed Aug. 21 and immediately took steps to pay the debt, he said.
"A mistake was made and I am rectifying it," he said earlier today.
He later faxed to the Tax Watchdog a copy of a check dated today and issued to the U.S. Treasury.
Category: Thomas Hearns
Posted by Robert Snell on Thu, Sep 4, 2008 at 3:10 PMThomas Hearns goes three rounds with IRS
Thomas "Hitman" Hearns owes $90,824.59: In June, the Tax Watchdog wrote about two liens totaling $267,890 filed against the legendary Detroit boxer. Since then, he's paid off one lien, only to have a third one filed against him last month.
What's owed:- On Aug. 19, the IRS filed a $90,824.59 lien against Hearns for unpaid income taxes. According to the lien, which you can see here, Hearns owes the money from 2007.
His side: Hearns' lawyer did not return repeated phone calls seeking comment.
Former Councilman Alonzo Bates bitten by lien
Former Detroit councilman Alonzo "Lonnie" Bates owes $33,012, according to the IRS.
Bates, 68, is serving a 33-month sentence in Lewisburg, Pa., for theft and bank fraud. He was sentenced in September after a jury convicted him of charges related to placing "ghost employees," who did little or no work for the city, on his city hall payroll. He was ordered to pay $101,706 in fines and restitution.
Bates was a one-term councilman. Before that he was a longtime school board member and city parks and recreation official.
What's owed:
- The IRS filed a $33,012.32 lien against Bates on Aug. 14 for unpaid income taxes. According to this copy of the lien, Bates owes the money from 2002-06.
His side: Bates' lawyer said she was unaware of the lien or what led to it being filed.
Sergei Fedorov shows taxes were paid off
Former Detroit Red Wing Sergei Fedorov owed $30,587 in state and property taxes, according to public records. But today, Fedorov's attorney released documents that show he had paid the taxes, despite public records showing otherwise. The tax watch dog first reported this on July 16.
Fedorov, 38, played for the Wings from 1990 through 2003, winning the Hart Trophy in 1994 as NHL most valuable player. He later played with Anaheim and Columbus.
What's owed:
- Fedorov has not paid his 2007 winter tax bill of $6,898.65 on his Bloomfield Hills home, according to the Oakland County Treasurer. He also has not paid summer 2008 property taxes, which total $21,619.75. The summer taxes are due Aug. 31, according to the Bloomfield Hill's treasurer.
- The state of Ohio filed a $2,069 lien against Fedorov for unpaid personal taxes on May 21, 2007, according to the Franklin County Common Pleas Court clerk's office. The address on the lien is Fedorov's $1.6 million Miami Beach condominium -- property he bought from former flame Anna Kournikova, property records show.
His side:
Fedorov's lawyer, Brian D. O'Keefe, initially could not be reached for comment. Today, the lawyer provided receipts that show Fedorov had paid off the taxes in April and May.
The winter 2007 tax bill was paid in full April 11, according to a receipt.
O'Keefe also provided a copy of a $1,782.56 check showing the Ohio taxes were paid in May 2007.
"This check is in a lower amount than originally claimed since we were successful in convincing the state of Ohio that they were originally overstated..." O'Keefe wrote in a letter today.
In a separate letter, O'Keefe reiterated that the summer 2008 taxes are not yet due.
O'Keefe also provided a report showing there were no tax liens filed against Fedorov's condo in Florida.
PGA pro Tommy Armour III chips out of IRS bunker
PGA golfer Tommy Armour III owes $863,270 in federal income taxes, according to public records.
The 48-year-old Texan is having a great year on tour, earning almost $1.4 million, though he missed the cut today at the PGA Championship at Oakland Hills. Armour's golfing success has been good news for the IRS, which has gotten several of those garage-door sized checks from the golfer, who said he's been paying off tax debts with some of his winnings. During his career, he's earned more than $8.8 million.
What's owed:
- The IRS filed an $89,837.59 lien against Armour on June 2 for unpaid income taxes, according to this lien. He owes the money from 2006, according to the IRS.
- The IRS filed a $763,677.43 lien against Armour on April 3 for unpaid income taxes, according to this public record. He owes the money from 1999 through 2002 and 2005.
- The IRS filed a $9,755.82 lien against Armour on January 17 for unpaid income taxes. You can see that lien by clicking here. He owes the money from 2005, according to the IRS.
His side: Armour admits he owed the money, but says he's paid off most of the debt and owes less than $100,000. He blames the debt on a mix of bad management, inconsistent earnings and his lifestyle.
"If you get used to living a certain lifestyle and you have a couple of bad years, suddenly things start building up," he said. "It's a hole that was dug. I made some bad decisions and had some bad management for a moment."
He said the debts should have been paid off but the IRS misplaced a payment and an agent altered payment arrangements.
"This year, fortunately, I made some money and I took care of this guy but he still thinks I should move out of my house into an apartment, sell my cars and drive a Pinto," Armour said.
Though he has made a lot of money this year, he said the cash doesn't go as far as the public thinks.
"There's a lot of traveling and people you pay -- from trainers and people on your team -- to make this all happen," he said. "It's just not that...easy, trying to be the best at something in the world. That's a hard proposition.
"I'm not rich by any means," he added, "but I'm not going to miss a meal tonight."
Take a tour of Armour's house -- and his shoe collection -- by clicking on the video below.
Aretha Franklin faces new tax debts
Aretha Franklin owes $190,058 in state and federal taxes, records show.
The 66-year-old "Queen of Soul" narrowly lost one of her palaces earlier this year due to back property taxes. Her $714,000 mansion overlooking the Detroit Golf Club was weeks away from foreclosure in March and she also owed $1,200 in delinquent taxes on her $1.8 million Bloomfield Township home, records show.
What's owed:
- The IRS filed a $175,260 lien against Franklin on June 30 for unpaid income taxes, according to this lien. She owes the money from 2006, according to the IRS.
- The state of California filed a $14,798 tax lien against Franklin on May 30, 2007. The lien was filed in Sacramento County Court.
- The state filed a $33,406 state tax lien against Franklin on March 21 for unpaid income taxes. You can see that lien, by clicking here. The Tax Watchdog asked Franklin's spokeswoman about the tax debt on July 23. Two days later, the lien was released by the state, meaning Franklin no longer owes the money.
Franklin issued the following statement through her spokeswoman: "My obligations to the Internal Revenue Service have been paid."
Her spokeswoman would not elaborate and the statement did not explain why there is no record of the IRS tax debt being paid off.
As for the delinquent California taxes, Franklin said: "I know nothing about that--my accountant and attorneys will have to look into that."
Here's Aretha singing "Chain of Fools"
Tax collectors target Kilpatrick foe
Detroit lawyer Corbett Edge O'Meara owes $123,290 in state and federal taxes, records show.
O'Meara, son of U.S. District Judge John Corbett O'Meara, is a Detroit attorney who gained fame this spring for suing Mayor Kwame Kilpatrick and his former chief of staff, Christine Beatty. The lawsuit sought to recover $8.4 million spent by the city settling police whistle-blower lawsuits last year.
O'Meara, 42, who is running for a seat on the Wayne County Circuit Court bench, wanted to freeze Kilpatrick's personal assets and the assets of the mayor's legal defense fund, which has raised more than $180,000.
The case, which was featured prominently in O'Meara's campaign commercial (see below), was tossed today.
What's owed:
- The IRS filed a $26,000.70 lien against O'Meara on July 2 for unpaid income taxes. According to this lien, O'Meara owes the money from 2002.
- The IRS filed an $82,350.92 lien against O'Meara and his ex-wife on March 27 for unpaid income taxes. According to the lien, which you can see here, they owe the money from 2003-04.
- The state filed a $14,938.46 lien against Corbett Edge O'Meara on Jan. 31, 2007, for unpaid income taxes. According to this lien, O'Meara owes the money from 2004-06.
O'Meara says he has paid $12,350 toward the state lien and is negotiating with the IRS to pay off the federal taxes. He blames his financial woes on a divorce and the cost of being self employed and not having taxes automatically withheld from his paycheck.
"If you want me to pay my taxes, elect me judge," he said, laughing. "In gross dollars, I'll make less money but they can take (the taxes) right out of my check."
The lure of a steady paycheck partly explains his judicial aspirations, he said.
"I think the idea that only rich people or people who never had financial problems deserve to hold elective office is ridiculous," he said.
He's had his share of financial problems. O'Meara filed Chapter 7 bankruptcy in 2005 and, a year later, his Grosse Pointe home was sold after he and his ex-wife defaulted on the mortgage, according to this public record.
"I always thought I'd rather have a public servant who is understandably broke than mysteriously wealthy," he said.
Rattlesnake Club bitten by tax man
State says posh eatery Rattlesnake Club owes $110,798: The restaurant where Michelle Obama held a $500-per-person reception last week for husband Barack Obama's presidential campaign has struggled financially amid the rocky economy. The debt comes as the restaurant along the Detroit River is celebrating its 20th anniversary and amid some controversy involving award-winning chef/owner Jimmy Schmidt, according to this report.
What's owed:
- The state of Michigan filed a $26,440 lien against the Rattlesnake Club on April 23. According to the lien, which you can see here, the restaurant owes sales and withholding taxes.
- The state of Michigan filed an $84,358 lien against the Rattlesnake Club on Nov. 30, 2007, for unpaid sales and withholding taxes, according to the lien.
His side:
Schmidt, 53, blamed the economy for the tax debt and companies slashing expense accounts.
The Grosse Pointe Park resident is paying $5,000 a month toward the tax debt and has paid about $25,000 so far, said his tax lawyer, Fred Foley. He said it will take about 18 months to pay the balance.
"We're not in danger of closing. We've been in business for 20 years and fought very hard to maintain our position in the marketplace," Schmidt said. "The challenges last year and economy were very difficult, especially the number of customers that went out of business."
IRS worms way into Dennis Rodman's life
Dennis Rodman owes $448,905, the IRS says: The 47-year-old former Piston Bad Boy starred on two championship teams during his seven-year Detroit career. His NBA career ended in 2000 and his retirement has been marked by controversy, much like his playing days. He was charged in May with domestic violence for allegedly hitting his girlfriend at a hotel and later pleaded no contest to misdemeanor spousal battery.
What's owed:
- The IRS filed a $165,818 lien against Rodman for unpaid income taxes on Feb. 2, 2007. Rodman owes the money from 2005, according to the lien, which you can see here.
- The IRS filed a $283,087 lien against Rodman for unpaid income taxes on June 26, 2006. According to the lien, which you can see here, Rodman owes the money from 2004.
His side: Rodman's agent did not return calls seeking comment.
Mitch Ryder copes with moola millstone
Mitch Ryder owes $216,264, according to the IRS: The Detroit music icon (real name William Levise) gained fame during the mid-1960s with his band the Detroit Wheels. Key tunes by the 63-year-old include "Jenny Take A Ride," "Devil With A Blue Dress On," and "C.C. Rider." Earlier this year, Wayne State University Press released a book about the South Lyon resident's career.
What's owed:
- The IRS filed a $204,011 lien in January 2006 for unpaid income taxes. According to the lien, which you can see here, Ryder owes the money from 1999-2002.
- The IRS filed a $12,153 lien for unpaid income taxes in February 2003, according to the lien. The IRS says Ryder owes the money from 1998.
His side: Ryder acknowledged owing the money and said his lawyer is negotiating with the IRS. The debt stems from tax miscues and has lingered thanks to a cash crunch tied to a declining career and costly divorces, he said.
Ryder says the tax trouble started after a falling out with his brother, a certified public accountant who used to prepare Ryder's taxes. After the split, Ryder did his own taxes incorrectly, he said.
He didn't pay attention to changing tax codes and filed for deductions that were no longer allowed, he said. He ended up owing money to the IRS --a figure that ballooned once combined with interest and penalties.
"It grows at a fantastic rate. It's my fault," he said. "I'm not really astute at business. What I like to do is dream and create and do the things I think I do well."
On top of the tax burden, his touring career has sharply declined and his hits are no longer selling as briskly, especially amid a struggling economy, he said. In the last two or three years, he has only sold about 5,000 albums, according to Nielsen SoundScan.
He's been unable to capitalize on digital sales because Ryder still is working to get his entire music catalogue available on iTunes.
And he's only performing about 24 shows in the U.S. this year, down from about 170 shows five years ago. He's scheduled to perform Friday at the Rockin' on the Riverfront concert series in Detroit.
"This will be the worst year (financially) I've had in decades," he said. "We're struggling at the moment."
It's a struggle made more difficult by several costly divorces, he said.
"What I've been through has put a big dent in the wonderful cushion I had for retirement," he said.
Ryder is trying to negotiate a settlement with the IRS, though he doesn't have the entire amount right now.
"Unless they want to take a check," he joked, "which would open me up for another crime."
Check out the video below of Ryder singing the hit "C.C. Rider."
