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Records Show Sharpton Owes $1.5 Million In Taxes And Penalties Save Email Print
Posted: 8:23 PM May 9, 2008
Last Updated: 8:23 PM May 9, 2008

A | A | A

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 the nation's most prominent civil rights leader, 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 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 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.

"The infrastructure was trying to keep up with that pace, and it was not a perfect fit," he told the AP on Friday. "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 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 December, 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 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.

If any of this worries Sharpton, you'd never know it. He is pressing ahead with his latest campaign - an effort to persuade the Justice Department to bring civil rights charges against New York City police detectives who fired 50 shots and killed an unarmed groom as he left his bachelor party.

Over the past few weeks, Sharpton has kept a high profile, promising to lead weekly demonstrations until new charges are brought against police detectives acquitted of manslaughter April 25 in the November 2006 death of Sean Bell.

"He is as focused as ever," said Rep. Gregory W. Meeks, a Queens Democrat who has also rallied for police reforms since the Bell case. "He is probably more effective now than he was in the past, than he has ever been."

Sharpton was arrested and spent a few hours in jail Wednesday for being among the marchers who blocked the Brooklyn Bridge to protest the verdict.

On Thursday, Sharpton said he may soon add another cause - the case of three shooting suspects who appeared to have been beaten and kicked by police during an arrest in Philadelphia.

Sharpton has been investigated before, and always walked away clean.

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.

In the latest probe, the official overseeing the investigation is U.S. Attorney Benton Campbell - the same Brooklyn-based prosecutor whom Sharpton is urging to file criminal charges in the Bell shooting. Campbell's office has said it is reviewing the case but declined to comment further.

Sharpton's reputation has undergone a remarkable renaissance since the Tawana Brawley days in 1987, when he was accused of helping create a hoax in which the 15-year-old girl claimed she had been kidnapped and raped by a gang of whites that included a police officer and a prosecutor. A grand jury concluded that Brawley made the story up.

Since the late 1990s, his civil rights group has grown from a small outfit, with a few hundred thousand dollars in annual revenue, to an organization that now routinely takes in $1 million to $2 million per year, thanks partly to corporate support.

Donors have included beer giant Anheuser-Busch, which gave more than $100,000 last year, and Forest City Ratner, a real estate development company that courted black leaders for support of a plan to build an NBA arena in Brooklyn. PepsiCo, for several years, gave Sharpton a compensated position on one of its advisory boards.

The group also enjoys financial support from the state's top politicians.

New York Gov. David Paterson has transferred at least $28,000 from his own re-election committee to the National Action Network since 2001. Rep. Charles Rangel, a top Democrat in Congress, has been another major backer, giving at least $83,000. New York Attorney General Andrew Cuomo has given $10,000.

"Everybody who runs for office in the Democratic Party wants to meet with him," said former Mayor Ed Koch, who once battled Sharpton but now calls him a friend and a "bona fide leader."

Koch said Sharpton's past will always be an issue with some whites, and he disagreed with the decision to engage in civil disobedience over the Bell case. But the former mayor believes the respect Sharpton enjoys among blacks is well earned.

"He is willing to go to jail for them," Koch said. "And he is there when they need him."

Copyright 2008 by The Associated Press. All Rights Reserved.

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Posted by: John Location: Mount OLive on May 13, 2008 at 04:13 PM
They say: "Give a fool enough rope and he will hang his-self". I have been wondering when this one's rope was going to run out? It could happen to a more deserving idiot!! Oh yes, to all the other idiots that have been supporting this fool; maybe you can send him the 1.5 M!!!

Posted by: randy Location: martin co nc on May 13, 2008 at 08:13 AM
We've got someone just like "Reverend" Sharpton and I use that word losely cause he is about as much of a reverend as my pet beagle. Anyway our man doesn't think he is supposed to pay his county taxes, because every year his name is in the paper. He was also asked to "retire" early from his job because he was caught padding pay checks. Yet he sits on our school board! When are people going to wake up and start listening to and electing decent respectable people if there are any left.

Posted by: mjb Location: windsor on May 12, 2008 at 02:30 PM
Wow! What a story. I can't believe he did anything wrong. Not! These "reverends" amaze me. I know nobody's perfect, but I think I would have noticed my taxes weren't paid. It will get blamed on the accountant and Brother Sharpton will be doing fine by the time Obama's sworn in.

Posted by: sandra Location: to steve on May 12, 2008 at 05:49 AM
yes honey, they are professional TROUBLE-MAKERS!!!!!

Posted by: steve Location: Kinston on May 11, 2008 at 11:36 PM
Has Sharpton and Jackson ever had a REAL job?

Posted by: Anonymous on May 11, 2008 at 08:48 PM
I hope no one comes to his rescue, and that he will need to pay back every penny and serve time.

Posted by: BOB D Location: NC on May 11, 2008 at 01:20 PM
All, that I can say is everyone has to pay their taxes or their wages are garnish by the IRS, There better not be a Pardon for one the biggest Racial Hate group leaders that there is. Yes, when I owe money they want what belongs to them so he is going to have to do the same. but' how in the world do you owe 1.5 million, this just didn't happen overnight this should have been detected long ago. But, I say better him than the rest of us who don't try something this crazy, always trying to get over on somebody.

Posted by: Michael Location: Downeast on May 11, 2008 at 06:49 AM
Anyone know who Al supports for President? I'll give you one guess. Will that candidate denounce the criminal element and how long will it take? Maybe Al will be dragging this out in the court long enough to receive a Presidential pardon!

Posted by: sandra Location: washington on May 11, 2008 at 06:38 AM
he can share a cell with wesley snipes....make a reality tv show so the proceeds can pay their debts!!!

Posted by: Raptor Location: nc on May 11, 2008 at 12:09 AM
Al owes more to the IRS than most of his supporters will make in a life time.

Posted by: Cactus Location: Strabane,NC on May 11, 2008 at 12:05 AM
Al Sharpton, a religous leader(?), civil rights leader(?), protester (for Photos), friend to congress and political leaders (because they don't know how/or what to do with him), and income tax evader. Should you or I owe money of this amount to the IRS we would be jailed, period. Al Sharpton will never serve a day or pay 10% of what he owes the IRS, he will go free because of who he is.

Posted by: J Location: NC on May 10, 2008 at 07:44 PM
And why is he not in jail?If I didn,t pay my taxes I,d be locked up!!Why is it diffrent for him?

Posted by: rp Location: ahoskie on May 10, 2008 at 06:55 PM
Looks like al is going to be the one, "shut down".

Posted by: Anonymous Location: NC on May 10, 2008 at 06:38 PM
This is really crazy. Once again people are using race as the problem. It's not about race, it's about him not paying taxes. On the other hand if I have to pay taxes he should also. The bible speaks of jugding people. Me, I don't like to jugde, but him as a minister he's not setting a good example for the black community. I always heard a preacher say "Follow me as long,as I follow Christ". Rev. Sharpton you need to rethink your decision of trying to be a leader. You may need to be a follower from here on out.

Posted by: BIG J Location: SNOWHILL on May 10, 2008 at 05:47 PM
Oh look at this! Mr.Sharpton,owe all these taxes but don't mess with him,he is a good man,HA!HA! He is nothing but a loud mouth. If it was a poor working man who owe all these taxes they would lock him up for life. They need to do their job and make him pay or lock him up.He is not a GOD ,,,,he is just a man with a big Mouth,,make him PAY like evryone else.

Posted by: Rick Location: Washington on May 10, 2008 at 04:53 PM
Sharpton apparently pulls a lot of politicians strings - a master puppeteer. Be very careful who you vote for in November. People like Sharpton make big business, big cars, and fat wallets out of "helping" the poor and his tax bills seem to prove it. Frustrated volunteers march with him, give him hard earned money, put themselves at risk, sing his praises, and he smiles all the way to the bank.

Posted by: David Location: Manteo on May 10, 2008 at 04:06 PM
What?! Sharpton did something wrong? NO! It cant be! But he is a do not wrong person isnt he? I mean, what will his followers think? He will get away with this because NAACP and the black community will march until he does! Dont forget that Al Sharpton is the almighty God in the black community. They can never see him do anything wrong and when they do see it, they help get him out of it! Before this is over with, this will be the fault of the white people and a march will proceed.

Posted by: joesixpack Location: williamston on May 10, 2008 at 02:17 PM
I could never understand why this clown is so admired by the black community. He's nothing but a racist/tax cheat!! Maybe he'll be as popular with his cellmates!

Posted by: Angela Location: Greenville on May 10, 2008 at 12:14 PM
Joseph why do you think everything racist. To answer the question "is it RACIST?"...NOT! the IRS has went after plenty of blacks for not paying their taxes. How did the duke lacross team come into NOT PAYING TAXES? It sounds like a lot of racism is within you. If you look at a lot of the black celebrities some went to prison for not paying taxes. Besides the people who killed the young ladies deserve prison time(death row will do). But the IRS is not playing the race card when it comes to people not paying there taxes. Sharpton has a BIG mouth and a lot of people dont care about him or what he is saying! If WILLIE NELSON didn't pay his taxes then he deserve prison time. JOSEPH wouldn't you just love to know what color the IRS person who's looking at SHARPTON and NELSON'S taxes...SIKE! Let up a little on this race thing and everytime/next time you hear or see something about SHARPTON don't listen to it, you will probably feel better..SMILE:-)

Posted by: Jonathan on May 10, 2008 at 11:38 AM
Typical hypocritical liberal!!! Lock him up.

Posted by: Chris Location: Greenville on May 10, 2008 at 11:34 AM
Al who? I personally cant stand this clown! Reminds me of the late 80's when "Al" helped coach a black female to saying that she was raped by white males, including a police officer.. Anyone that is caught lying red-handed like that in my opinion is not worth the dirt he walks on.

Posted by: Ron Location: Merritt on May 10, 2008 at 10:40 AM
Sharpton is nothing but a low-class bigoted crook. The liberals adore him, making him some sort of hero. He should be in jail!!

Posted by: Joseph Location: eastern N.C on May 10, 2008 at 09:42 AM
Is this RACIST or not? the I.R.S sure went after Willie Nelson,why not this RACE Monger?Where was he when the DUKE LaCross players were found innocent? where was he when the blacks killed those 2 college girls from georgia going to school in N.C?

Edited


Posted by: Bandanaman247 on May 10, 2008 at 07:45 AM
SAY IT AINT SO ! I bet the first thing out of his mouth is A White man done it to him LOCK him up And take everything hes got! He always wanted to talk the talk NOW let HIM walk to WALK..

Posted by: Mike Location: Edenton on May 10, 2008 at 07:15 AM
The IRS should "attach" all his holdings and checking accounts like they do anyone else. I wonder what the next big issue he will jump on to raise more donations. Tawana Brawley, Duke Lacross, Jena 6.....NEXT! Maybe Obama will give him a job as Secretary of Housing and Urban Development!

Posted by: just Location: perfect on May 9, 2008 at 11:02 PM
awesome...brotha should go to jail and in a jiffy. maybe that would shut him up for a while!

Posted by: a tax paying citizen on May 9, 2008 at 10:03 PM
don't insult obama...he doesn't want to associate with someone that shows up with trouble following. Al, you don't deserve to be called a reverand...you will be serving time soon.

Posted by: Clifton Location: Washington on May 9, 2008 at 09:23 PM
Oh well. If he fails to pay up, then lock him up like they lock up every one else that fails to pay up.

Posted by: Mr. Bob on May 9, 2008 at 08:38 PM
Sharpton would be a good running mate for Obama.

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