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Sharpton owes $1.5 million in back taxes, penalties

Big corporations give him money. Presidential candidates seek his endorsement. He has influential friends in Congress and the governor's mansion.

The Rev. Al Sharpton has emerged over the past decade as perhaps the nation's most prominent civil rights leader, a status that was demonstrated this week when he led protests against police brutality that shut down six of Manhattan's major bridges and tunnels.

But he still carries baggage from his early days as a fire-breathing agitator: Government records obtained by The Associated Press indicate that Sharpton and his business entities owe nearly $1.5 million in overdue taxes and penalties.

Now the U.S. attorney is investigating his nonprofit group, a probe that an undeterred Sharpton brushes off as the kind of annoyance that civil rights figures have come to expect from the government.

"Whatever retaliation they do on me, we never stop," he told the AP. "I think that that is why they try to intimidate us."

Over the past year, Sharpton's lawyers and the staff of his nonprofit group, the National Action Network, have been negotiating with the federal government over the size of his debt, which they dispute. The group has also been trying to pay off tens of thousands of dollars it owes for failing to properly maintain workers compensation and unemployment insurance.

Charlie King, the organization's interim executive director, said both Sharpton and the group he leads were unprepared for their rise in stature in recent years and had trouble dealing with big jumps in donations and income.

He said the organization has new accountants and a new administrative team, and the group recently finally filed long-overdue tax returns.

Sharpton's own debts include $365,558 owed in New York City income tax and $931,397 in unpaid federal income tax, according to a lien filed by the Internal Revenue Service last spring. His for-profit company, Rev. Al Communications, owes the state another $175,962 in delinquent taxes.

As for Sharpton's personal tax debt, King said Sharpton has started paying it off but contends that faulty record-keeping by the National Action Network led the government to overestimate his tax liability.

Tax headaches are nothing new for Sharpton. The 53-year-old minister has been assailed over his career for running up big tax debts and failing to abide by rules governing his charities and election committees. He is perpetually being sued for failing to pay his bills.

In 1990, he was acquitted of tax fraud and charges that he stole from one of his charities. He followed that up with what was essentially another victory in a tax case by pleading guilty to a misdemeanor charge of failing to file a state return.

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CHRON.com

http://www.chron.com/disp/story.mpl/nation/5768824.html

Published Saturday, May 10, 2008 8:00 AM by publisher

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