The Rev. Al Sharpton, a civil rights activist, and television host has faced scrutiny for tax evasion in the past, including a meme debunked by Snopes in March 2019 that compared his tax situation to that of several white celebrities and a Facebook claim about Sharpton and Stacey Abrams in July 2020.
Could poor planning be responsible for all the Al Sharpton taxes not getting paid on time? Was this a problem for him or any of his companies? The answer is most definitely yes, but the unknown part is “how” he managed to do all that, fix his issues, and continue his advocacy.
Here we discuss Al Sharpton himself, the Al Sharpton taxes, the things he’s done in the course of his journey, and why taxes are so much of an issue.
Introduction
Keeping proper records might aid you in resolving a tax dispute. In fact, keeping proper records might help you avoid getting into issues with the IRS in the first place. Is preserving records important to the IRS? Yes.
The New York Times portrays a picture of sloppy planning, with the entities paying for and owning almost everything, not Mr. Sharpton. It’s possible that this extends to the clothing on his back, with the entities paying for things like his children’s expensive school tuition.
If that’s the case, Rev. Sharpton has crossed one of the most crucial lines in tax law. The basic difference between business and personal is at the root of many tax conflicts. Trying to turn a personal relationship into a commercial relationship is a recipe for disaster.
Correspondence audits make up the majority of audits. You may be advised that your deductions will be denied until you send back supporting documents. Tax liens might be based on your own returns or charged additional taxes.
According to estimates on Investopedia, Mr. Sharpton and his for-profit firms owe more than $4.5 million in state and federal tax liens. He is not alone in his struggles. In truth, celebrities are frequently in this situation. Even if they earn a lot of money, their tax payments may fall through the gaps.
READ ALSO: How Much Does A Tax Lawyer Cost in 2022
Who is Al Sharpton?
Alfred Charles Sharpton Jr. is an American civil rights activist, Baptist clergyman, talk show presenter, and politician who was born on October 3, 1954. He founded The National Action Network and has branches and affiliations all throughout the United States.
Sharpton is also the author of several books, including ‘Al On America,’ and the host of the Al Sharpton Show, a nationally syndicated radio show. Revals Communications and Raw Talent are two for-profit businesses he owns. Some of his financial troubles appear to be the result of a lack of separation between business and personal finances, which is a typical tax issue among entrepreneurs.
Rev. Sharpton as he is popularly called boasts that he isn’t the finest administrator in the world and that must also apply to others in his organizations.
In the 1980s, Al Sharpton allegedly covertly taped meetings with black activists about Joanne Chesimard (Assata Shakur) and other underground black militants. Ahmed Obafemi, a veteran activist, told the New York Daily News that he had suspected Sharpton of filming him with the bugged bag for a long time.
Following his participation in a narcotics bust involving Colombo crime family leader Michael Franzese, Sharpton became an FBI informant in 1983, according to records published by The Smoking Gun in April 2014.
Sharpton is accused of recording damaging discussions with Genovese and Gambino mobsters, which helped lead to the prosecution of multiple mafia officials. In FBI records, Sharpton is referred to as “CI-7.”
In 2004, he ran for the Democratic presidential candidacy in the United States. He conducts his own radio talk program, Keepin’ It Real, and appears on cable news television on a regular basis. Sharpton has found himself rooted in a lot of things that have ranged from Christianity to politics to gender issues.
Why Do People Owe Taxes?
The most important thing to understand is that people who do not pay their taxes do not pay them because they question why they have to pay taxes, what these taxes are used for, or because they are just anti-government or have a fraudulent streak in them.
When these thoughts pervade the mind, a resistance to the idea of taxes can develop that makes the individual not pay. Now while this may be the case, the IRS does not know this and groups everyone under the same umbrella when going after defaulters.
To provide insight into the reason why we pay tax, it would suffice to say that the simplest and most plain explanation is that the IRS determined that vast quantities of money might be made by taxing hitherto untaxed work. More money from taxes was needed and that meant that a new source would need to be taxed.
The only money that was “taxable” was money earned via business activity, which was referred to as “income.” Because labor was not included in corporate income, it was not taxed.
So when the government decided to tax people’s labor, the IRS simply changed the definition of “income” in the tax code to include any and all money earned by individuals and/or corporations, both of which are now referred to as “entities” and generate taxable “income.” It only needed a simple alteration in the definition of one small word: income.
If people feel like the taxes are much or that they should not be taxed, they will not pay.
Tax attorneys assist people in organizing their finances to maximize their tax savings. Read more on Tax Attorney.
How Much Does Al Sharpton Owe In Taxes?
A New York Times report says that the now svelte Reverend and his for-profit businesses owe a chubby $4.5 million in state and federal taxes.
The Associated Press reported on May 9, 2008, that Sharpton and his companies owed about $1.5 million in delinquent taxes and penalties. Sharpton owes $931,000 in federal income tax and $366,000 to the state of New York, plus another $176,000 to the state through his for-profit firm, Rev. Al Communications.
The New York Post reported on June 19, 2008, that the IRS had issued subpoenas to many firms that had given to Al Sharpton’s National Action Network. Andrew Cuomo, the Attorney General of New York State, started an investigation into the National Action Network in 2007 after it failed to file required financial reports.
Several prominent firms, including Anheuser-Busch and Colgate-Palmolive, have given thousands of dollars to the National Action Network, according to the Washington Post. The funds, according to the Post, were designed to prevent the National Action Network from organizing boycotts or protests.
The Detroit News’ Robert Snell reported on September 29, 2010, that the Internal Revenue Service has filed a notice of federal tax lien against Sharpton in the sum of $538,000 in New York City. These are the kind of situations where you need a Tax Attorney.
According to Sharpton’s lawyer, the notice of federal tax lien refers to Sharpton’s federal income tax return for the year 2009, which has been extended until October 15, 2010. The lien, according to the Snell report, pertains to taxes assessed in 2009.
Sharpton and his for-profit enterprises owed $4.5 million in state and federal taxes as of November 2014, according to The New York Times.
Related Post: What Is Proportional Tax? Definition, Overview, and How it Works
More Taxes For Al Sharpton?
Sharpton had accumulated over $4.5 million in unpaid state and federal taxes on his personal assets and for-profit businesses, including Raw Talent, Revals Communications Inc., and the National Action Network, a civil rights organization he founded, according to The New York Post and The New York Times in 2014.
Despite the fact that $4.5 million is a substantial sum, no reputable source has claimed that Sharpton owes taxes in excess of that amount. The fact remains that while these things are rumors, they could probably hold an element of truth despite how implausible it sounds.
In response to the investigations, Sharpton said that they indicated a political purpose by US authorities.
How Did Al Sharpton’s Tax Issue Happen?
In this case, Al Sharpton may owe taxes in one of two ways. The first is deception, which includes attempting to conceal income or intentionally underreporting it. The second way is through mistake, which generally involves a disagreement between your accountant and the IRS about how something should be reported.
You’ll almost always be prosecuted if you do the first. Only if you can’t come to an agreement with the IRS regarding who was correct (typically them) and a repayment plan will you be punished. The IRS is in most circumstances more concerned with collecting the taxes owing than with going to court.
In 1990, Al Sharpton was charged with two tax offenses, after which he was accused of failure to pay state taxes and fraud, but he was acquitted, and in a subsequent instance, he was charged with a misdemeanor for failing to submit a state return, to which he pled guilty.
That’s exactly what happened to Sharpton. On the outstanding taxes he owes in 2014, Sharpton was not charged with deliberate tax evasion. In 2014, he struck an arrangement with the IRS, admitted his mistake, and began paying the disputed sum.
At this time, I believe it has been paid in full. He was never charged with trying to hide money or deceive the government. If you still find it difficult to pay your tax, you can get a tax lawyer that fits your needs.
FAQs On Al Sharpton
Al Sharpton is 67 years old. He was born on October 3rd, 1954
Al Sharpton is an American Baptist minister, civil rights activist, and television/radio talk show host who has a net worth of $500 thousand dollars.
Sharpton got married to Kathy Jordan in 1980 and was together for 24 years before their split in 2004. Sharpton and Jordan share two daughters Ashley, and Dominique, who married Dr. Marcus Bright in 2017. They finally divorced in 2021.
On January 12, 1991, Sharpton escaped an assassination attempt when he was stabbed in the chest in a Brooklyn schoolyard by Michael Riccardi while Sharpton was preparing to lead a protest.
Conclusion
Sharpton had accumulated over $4.5 million in unpaid state and federal taxes on his personal assets and for-profit businesses, including Raw Talent, Revals Communications Inc., and the National Action Network, a civil rights organization he founded, according to The New York Post and The New York Times in 2014.
Despite the fact that $4.5 million is a substantial sum, no reputable source has claimed that Sharpton owes taxes in excess of that amount. The fact remains that while these things are rumors, they could probably hold an element of truth despite how implausible it sounds.
References
- worldscholarshipforum.com/wealth – What is Tax Attorney? Types/What you need to know in 2022
- en.wikipedia.org – Al Sharpton
- usatoday.com – Fact check: Viral meme compares Al Sharpton’s tax troubles with Willie Nelson’s
- tribecafilm.com
- investopedia.com – What Is a Tax Lien?
- forbes.com – Lessons From Rev. Al Sharpton’s $4.5 Million Tax Bill
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