Tax Watchdog

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Posted by Robert Snell (The Detroit News) on Tue, Feb 3, 2009 at 6:29 PM

Kwame Kilpatrick's new lawyer flies high, pays late

Former Detroit Mayor Kwame Kilpatrick's new lawyer Willie Gary, who escorted the disgraced politician out of jail today, doesn't owe delinquent taxes -- anymore. But the Internal Revenue Service claimed Gary owed $3.8 million in taxes between 1998 and 2000, public records show.

The tax issues clash with Gary's gold-plated public image and his career path that has taken him from migrant worker to millionaire and being profiled on the TV show "Lifestyles of the Rich and Famous."

The Web site of the so-called "Giant Killer" is wallpapered with photos of the Stuart, Fla., resident posing outside a mansion, with Bentleys and his custom-designed, 32-passenger Boeing 737 dubbed "Wings of Justice II." The plane's $11 million interior features an 18-karat gold sink, plush leather seats, carpet, a $1.2 million sound system, and a full-service kitchen, according to the Web site.

Kilpatrick might have monogrammed French cuffs that read "Mayor," but Gary's got the letter "G" painted on his plane's tailfin.

What was owed:

  • On Oct. 23, 2006, the IRS filed an $815,939 lien against Gary and his wife Gloria for unpaid income taxes, according to Martin County (Fla.) Circuit Court records. The couple owed the money from 1998 and 2000, according to this copy of the lien. The taxes were satisfied two months later, records show.
  • On Nov. 14, 2000, the IRS filed a $2.98 million lien against the couple for unpaid income taxes, according to Martin County Circuit Court records. The couple owed the money from 1999, according to this public record. The taxes were satisfied in September 2001, records show.

His side:

Gary's public relations staff did not respond to an e-mail or phone calls seeking comment today.

Click the video below to take a tour of Gary's house and plane.

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About this Weblog

Robert Snell of The Detroit News

Who owes taxes in Metro Detroit

Robert Snell is a Detroit News business reporter. He focuses on state and federal tax liens and, based on public records, interviews and Detroit News archives, identifies those who don't pay income, business and property taxes. He can be reached at rsnell@detnews.com or (313) 222-2028.

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Why we focus on unpaid taxes

Every year, about $345 billion in federal taxes are either late or unpaid, according to the IRS, ripping open holes in budgets and shortchanging schools and public safety. That forces taxpayers to cough up more than their fair share, tax experts say. About $2.5 billion went uncollected in Michigan between 2000 and 2006.

Liens are filed when taxpayers ignore government pleas for payment. Tax liens are like tar. They stick to everything - homes, cars and income. According to the IRS, liens give the government a legal claim to a person's or company's property. Liens serve as security or payment for the tax debt and a red flag to creditors.

There are a variety of reasons people don't pay. Some can't afford to and some refuse while others miscalculate or receive bad advice. Unpaid taxes can lead to prison - just ask actor Wesley Snipes.

This blog will focus on state and federal liens and identify those who don't pay income, business and property taxes. We will gather our information from public records, interviews and Detroit News archives.