Sharpton says he's working out tax-debt issues

The Rev. Al Sharpton, responding to new stories about his tangled finances, acknowledged Wednesday that he and his civil rights organization still owe back taxes and significant penalties but asserted that both were up-to-date in paying their "current" taxes.

Seeking to put a positive spin on the issues, Sharpton said he and his National Action Network have worked out installment payment plans to wipe out the tax debt.

Sharpton said that the National Action Network owes about $400,000 in what were unpaid payroll taxes and an additional $400,000 in penalties -- down from about $1.9 million assessed in 2008. But when asked at a news conference what he currently owes in personal back taxes, interest and penalties, Sharpton answered "I don't know" and indicated he might not say even if he had the numbers on hand.

"We are paying current taxes and my current one [taxes], while keeping up with installments," Sharpton told reporters at Network headquarters in Harlem. He said he hoped to reduce the balances further through negotiations.

In a story Tuesday, The New York Times reported that Sharpton at one point had more than $4.5 million in current state and federal tax liens against him and his for-profit business. Sharpton has two businesses, which the Times said face $717,329 in tax liens.

The story said Sharpton personally faced more than $3 million in federal tax liens and $777,657 in state liens. An IRS spokesman said he could not legally discuss individual taxpayer matters.

A spokesman for the New York State Department of Taxation and Finance said Wednesday that Sharpton had two current personal state liens totaling $779,577 and two totaling $457,968 for one of his private communications firm.

Those balances, including penalties, have actually risen over the years, the spokesman said. For privacy reasons, the spokesman couldn't discuss any payment plans.

Sharpton speculated new stories about his taxes were politically motivated because of his high profile and ties with Mayor Bill de Blasio and President Barack Obama.

tax dispute, Sharpton said, federal prosecutors launched a criminal probe into allegations of kickbacks and other irregularities but took no action.

"After negotiations in 2009, there was a signed document which worked out a payment plan to pay off those [debts]," said Sharpton, referring to the back federal taxes.

The Network's 2013 federal charitable organization filing showed the group had income of $4.9 million in contributions and grants against $5.1 million in expenses. Sharpton was paid a salary of $241,545.

By Anthony M. DeStefano

tony.destefano@newsday.comtonynewsday

Anthony M. DeStefano has been a reporter for Newsday since 1986 and covers law enforcement, criminal justice and legal affairs from its New York City offices.