NEW YORK (AP) — 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 one of the nation’s most prominent political figures, a status that was demonstrated again this week when he led protests against police brutality that briefly 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 Mr. Sharpton and his business entities owe nearly $1.5 million in overdue taxes and associated penalties. Now the U.S. attorney is investigating his nonprofit group, a probe that an undeterred Mr. 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, Mr. 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.
Charles King, the organization’s interim executive director, said both Mr. Sharpton and the National Action Network were unprepared for their rise in stature in recent years and had trouble dealing with big jumps in donations and income.
“The infrastructure was trying to keep up with that pace, and it was not a perfect fit,” he told AP. “The National Action Network may not have been perfect, but nothing was going on that was untoward.”
He said the organization has new accountants and a new administrative team, and the group recently filed long-overdue tax returns.
Mr. 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 Mr. Sharpton’s personal tax debt, Mr. King said the minister 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 Mr. 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, although no criminal charges have ever stuck to him.
In December, Mr. Sharpton revealed that as many as 10 of his associates had received grand jury subpoenas. A person familiar with the investigation told the AP that the FBI and IRS are probing whether Mr. Sharpton or his organization committed tax crimes or violations related to his 2004 presidential campaign, during which he was forced to return public matching funds for breaking fundraising rules.
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