Nov-04-2009California: Mayor Owes Back Taxes
(topic overview)
CONTENTS:- OAKLAND, Calif. — Oakland Mayor Ron Dellums and his wife owe more than $200,000 in back taxes to the Internal Revenue Service, property records indicate. (More...)
- Jesse Weller, an IRS spokesman, declined to comment Tuesday because of tax-privacy laws. (More...)
- Pine said that Dellums should consider resigning. (More...)
- Oakland Mayor Ron Dellums gestures while talking to reporters and staff members in his office at City Hall in Oakland, Calif., Thursday, March 12, 2009. (More...)
- Paul Rose, a spokesman for Dellums, said the mayor and the IRS had previously disagreed over the amount owed. (More...)
SOURCESFIND OUT MORE ON THIS SUBJECTOAKLAND, Calif. — Oakland Mayor Ron Dellums and his wife owe more than $200,000 in back taxes to the Internal Revenue Service, property records indicate. Alameda County records show the IRS has placed a lien on the couple's property that claims they failed to pay $239,000 in federal income taxes from 2005 to 2007.
[1] OAKLAND, Calif. — Oakland Mayor Ron Dellums says he owes back taxes to the Internal Revenue Service. Alameda County records show the agency placed a lien on his property on Oct. 14. Dellums acknowledged in an interview Monday with the Oakland Tribune that he owes taxes and said the issue is being dealt with. He would not say how much money he owes or why he is in arrears.
[2] Oakland Mayor Ron Dellums and wife Cynthia Dellums seem to have decided to stop paying the taxman in 2005, and the Internal Revenue Service has now placed a lien on their personal property for at least $239,000. And, frankly, according to public records researched by the East Bay Express, when Dellums quit the lobbying gig, it was actually paying worse than the $184,000 Dellums earns as mayor -- plus the pension he receives as a former congressperson.
[3] 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.
[4] "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. That looks highly unlikely because he and his wife apparently don't earn enough from his official Oakland salary of about $184,000 a year to sustain the lifestyle with which they have become accustomed. The couple rent a stately four-bedroom, three-bath home on Skyline Boulevard in the Oakland hills that appears to be out of their price range. The Dellumses don't have to reveal how much rent they pay each month, but according to public records, their home is rather large. It's 3,204 square feet and sits on 9,667-square-foot lot. According to Zillow.com, it's valued at $924,500, and was likely worth much more than that before the housing crash. The Dellumses also are well-known for their expensive tastes. The mayor dresses in exquisitely tailored suits and his official mayoral calendar reveals that they eat out rather often, usually in upscale eateries. Cynthia Dellums has held no paid positions since he became mayor, sources said. She acts as his unpaid advisor and is a fixture at City Hall. Dellums took an unpaid leave of absence from his D.C lobbying firm, Dellums and Associates, when he became mayor.
[4] Federal lobbying records culled by the nonpartisan Center for Responsive Politics, reveal that Dellums' lobbying firm, Dellums and Associates, only reported $90,000 in lobbying income that year. It's unclear exactly how the Dellumses had so much tax trouble on so little income. (Although Dellums also likely gets a Congressional pension in excess of $100,000 annually, it's not clear exactly how much he receives because he does not have to report it on his official statements of economic interests filed with the city.) It appears that Dellums' lobbying firm wasn't doing well and he was in serious tax trouble long before he took his mayoral oath. The IRS lien states that the Dellumses failed to pay $66,554 in taxes in 2006, which was also before he became mayor in January 2007. Lobbying records, however, show his lobbying firm did much better that year - earning $240,000 in income. That's still substantially lower than the $370,000 the firm reported making in 2004. The IRS also maintains that the Dellumses failed to pay $48,247 in personal income taxes in 2007 - his first year as mayor. Regardless of when the Dellumses tax problems began, they likely have known about them for several years. The IRS routinely sends repeated notices to tax delinquents, demanding payment, before placing liens on their personal property.
[4] The lien says the couple failed to pay $124,198 in federal income taxes in 2005, $66,554 in 2006 and $48,246 in 2007, the year Dellums took office as mayor. The tax lien was imposed on all the couple's personal property, meaning they cannot pocket proceeds from any transactions without first paying off the IRS. It is unclear whether the Dellumses own any real estate. Public records show that they live in a rented, four-bedroom, three-bathroom home with 3,200 square feet on Skyline Boulevard in the Oakland hills.
[5] 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.
[4] Lots and lots of back taxes. According to
CBS 5, "Alameda County records show the IRS has placed a lien on the couple's property that claims they failed to pay $239,000 in federal income taxes from 2005 to 2007."
[6] Oakland Mayor Ron Dellums and his wife failed to pay more than $239,000 in taxes over a three-year period, public records show. Dellums, 73, and his wife, Cynthia, 55, who acts as his unpaid adviser, are named in a lien.
[5] The Internal Revenue Service has put a lien on property owned by Oakland Mayor Ron Dellums, and the mayor acknowledged late Monday that he owes the IRS money and said he is addressing the issue.
[7] Dellums, 73, and his wife, Cynthia, 55, who acts as his unpaid adviser, are named in a lien issued by the Internal Revenue Service and filed with the Alameda County recorder's office Oct. 14.
[5] On Oct. 14, the Internal Revenue Service placed a lien on property owned by the Dellumses, saying the couple owed $239,000 in taxes, interest and penalties for levies that were not paid in 2005, 2006 and 2007.
[8] The lien notice shows that the Dellumses owe $124,199 in federal income taxes, interest and penalties from 2005; $66,554 from 2006; and $48,247 in 2007. Though lobbying income was down in 2005, Dellums earned significantly more, sources said, as a lobbyist than he does as mayor even given a raise he received shortly after taking office.
[8] The mayor's statement followed a report on the East Bay Express' Web site, which said Dellums and his wife, Cynthia, owe at least $239,000 in back income taxes from 2005, 2006 and 2007, according to the IRS. This newspaper could not determine late Monday exactly how much the mayor owes.
[7] The mayor's tax problems were first reported Monday by the East Bay Express. In 2005, the first year the couple allegedly failed to pay their full taxes, Ron Dellums headed a Washington, D.C., lobbying firm, Dellums and Associates. It earned $90,000 in lobbying income, $70,000 from Rolls-Royce North America and $20,000 from AIDS Healthcare Foundation, according to the Center for Responsive Politics, a nonpartisan research group.
[5] In 2006, the lobbying firm received $100,000 from Verizon Communications, $120,000 from the Rolls-Royce group and $20,000 from the AIDS foundation. It is not known what the Dellumses' other sources of income were for those two years, although Ron Dellums is eligible for a congressional pension. Dellums founded his lobbying firm after retiring from Congress in 1998, where he had spent 14 terms.
[5] 
Jesse Weller, an IRS spokesman, declined to comment Tuesday because of tax-privacy laws. Dellums' office declined Tuesday to discuss the couple's plan to repay the taxes, what property they own or Ron Dellums' pension from his years in Congress. When Dellums was a candidate for mayor, City Councilmember Ignacio De La Fuente, his strongest opponent for the post, pressed Dellums to release his tax returns. He did not.
[8] Oakland's City Charter requires that the mayor have no outside jobs while in office. A source said the couple took a big financial hit when they came to Oakland, because he was making much more money as a lobbyist. That doesn't square with the IRS lien and other public records. The Dellumses appear to have gotten into serious financial trouble at least a year before he became mayor and while he was still a lobbyist.
[4] I agree with M. Ortega, Ron has been an improvement over Jerry, and the Task Force process may turn out to be a legacy for Oakland and other governmental systems that should adopt it or something similar as a way of breaking through the kiss-my-signet-ring attitude of far too many electeds. As to the taxes; big deal. When he pays them off after resolving his dispute with the IRS, that'll be great: we will then all rest assured that justice has been done, and the one agency that has done so much to end confusion in this country can claim another victory over one of the 100 or so million people who have filed improperly or have some sort of beef with the IRS's method of calculating what you owe. Remember the famous study where the same tax info was presented to 20 or so different IRS employees and every one them came back with different amount owing? Meanwhile, let's keep hoping that this Mayor will continue to bring stimuli to Oakland even though he doesn't make nearly so much as the Director of the Port of Oakland, the City Manager, numerous University Presidents, etc., none of whom have jobs that can ever be described from an urbanological point of view as half as intrinsically critical to the overall economy of the greater Bay Area metropolitan region. I know this is a great opportunity to find fault with one of our icons (the well-tailored-suits item is kind of left field, though, compared to the way others drape themselves), but let's see what the response is before going entirely ballistic and calling up the National Guard to keep the sky from falliing. "Revelations about the mayor's failure to pay taxes also could sink his chances of winning reelection" I doubt it.
[4] In July, the mayor, a stalwart of progressive ideals, announced a tax penalty amnesty program under which Oakland businesses with unpaid taxes or underreported gross receipts could file with the city without penalty during a three-month period ending Oct. 31. "As Oakland deals with these difficult financial times, it is essential that all possible revenue - taxes and otherwise - are collected so that we can fund crucial services," Dellums said in announcing the program.
[5] Cynthia Dellums works as an unpaid adviser to the mayor. Dellums' lifestyle is often described as "lavish" and he is known for his impeccable suits and his frequent trips -- often to lobby for federal tax dollars on Oakland's behalf -- on the city's dime. He has chosen his words carefully this week. "We owe taxes," he said after a public safety town hall meeting Monday night.
[8] "Obviously, any public official is supposed to be a role model and is supposed to obey the laws that the government is asking all the rest of us to obey," Charlie Pine, an East Oakland resident, anti-crime activist and frequent Dellums critic, said today. "He didn't disclose this. This has been germinating since 2005." Pine said he questioned Dellums' ability to lead the city as a result of the tax issue. He said Dellums should consider resigning to preserve his legacy and so "Oakland can have a real mayor."
[5] Charles Pine, a member of Oakland Residents for Peaceful Neighborhoods and a frequent critic of Dellums, wondered how long the mayors' tax issues might have been kept under wraps if Pine had not found the lien notice recently. Pine said he looked Dellums up "on a lark" at the Alameda County Clerk-Recorder's Office when he was there on unrelated business.
[8] Alameda County records show the lien was placed on Oct. 14th. Dellums acknowledged in an interview with the Oakland Tribune Monday that he owes taxes, but says the issue is "being dealt with." He would not say how much money he owes or why he is in arrears.
[9] "The issue has been addressed and will be resolved in short order." Dellums declined to specify how much he and his wife owe or say why his taxes were not paid in full when questioned about the issue after a public safety town hall meeting Monday in West Oakland. "We owe taxes," he said.
[7] Pine said that Dellums should consider resigning. One local tax attorney found it a surprise that the Dellumses' tax problems had escalated to a point where the IRS put a lien on their property. "It's interesting that someone in his position would not be receiving really good tax advice," said Kristin Pace, a partner at Fitzgerald Abbott & Beardsley in Oakland. "There could be lots of reasons why he didn't file on all the income, but it is surprising to me that a person of his stature would find himself in this position
[8] Public records show that the Dellumses do not own any property in Oakland. It is thought they rent the home they live in on Skyline Boulevard.
[8] The couple owns at least one piece of property, a home near Georgetown in Washington, D.C., in Cynthia Dellums' name and it is assessed at $1.5 million, records show. Staff writers Thomas Peele, Sean Maher and Chris Metinko contributed to this story.
[8] Dellums earns about $184,000 a year as mayor. He worked as a lobbyist before taking office as mayor in 2007 and had previously served in Congress. His wife, Cynthia, acts as his unpaid adviser.
[1] In January 2007, Dellums took over as mayor, a job that pays $184,000 a year. His wife does not have a paying job.
[5] Dellums earns about $184,000 a year as mayor. He previously served in Congress and worked as a lobbyist.
[2] Oakland Mayor Ron Dellums gestures while talking to reporters and staff members in his office at City Hall in Oakland, Calif., Thursday, March 12, 2009. [8] Mayor Ron Dellums heads the list of business and political luminaries who are driving big changes in the city.
[10] "I was surprised," said Robert Smith, a professor of political science at San Francisco State who has followed Dellums' tenure as mayor. "I think his ability to lead the city of Oakland had been pretty diminished anyway. This certainly doesn't help."
[8] "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. Being a tax delinquent violates his civic duty as both a public official and a citizen.
[4] I wish I had to pay $239K of federal income tax for 2005, 2006 and 2007. Assuming it means %30 of their income, we are talking about 260k / 280k annually.
[6] In 2005, the couple, who file jointly, failed to pay $124,199 in federal income taxes, according to the lien.
[4] Paul Rose, a spokesman for Dellums, said the mayor and the IRS had previously disagreed over the amount owed. [1] 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. "Their financial issues have weighed heavily on his mind from Day One," the source said.
[4] SOURCES1.
The Associated Press: Records show Oakland mayor owes IRS back taxes2.
The Associated Press: Oakland mayor says he owes IRS back taxes3.
Oakland Mayor Owes $239,000 in Taxes | NBC Bay Area4.
East Bay Express | Blogs | Dellums Fails to Pay at Least $239,000 in Taxes5.
Mayor Dellums, wife owe $239K in back taxes6.
Oakland Mayor Dellums & Wife Owe IRS $239K : SFist: San Francisco7.
IRS places lien on Oakland mayor's property over tax dispute - Inside Bay Area8.
Oakland mayor's tax trouble leaves plenty of questions - Inside Bay Area9.
Oakland mayor owes IRS back taxes - KGPE - CBS TV4710.
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