Elected officials can’t get away from tax issues better than anyone else these days. In New Jersey, Mayor Mack of Trenton is amidst a huge battle with the IRS, involving foreclosures, back taxes, and more.
Public records have revealed that Mayor Tony Mack currently owes over $50,000 to the IRS and has two properties currently in foreclosure. Lenders first filed a foreclosure notice on one property, a West State Street building, owned by Mack’s company on July 16th. Two days later FBI agents began to search Mack’s home in search of evidence for bribery, extortion, fraud, money laundering and even drug dealing linked to campaign contributor, Joseph Giorgianni.
The mayor, in his first term, has struggled for a long period of time with heavy debt. He owes hundreds of thousands of dollars on mortgages and has been overdue on both tax and sewer payments. He has also defaulted on mortgages many times.
Although Mack claims that he has not violated the public trust, he has admitted to struggling with finances, citing late taxes from past irregular employment as well as the general cycle of foreclosure. He had received numerous foreclosures since his loss of employment in 2004 and has been struggling to maintain his own property and belongings.
Mack owes $34,800 in back taxes in addition to fees for a fire damaged property at 29 Hampton Ave. He lost an $80,000 salary job in 2004 and another in 2008. Although he currently makes $126,400 annually as Mayor now, he still has been facing serious financial trouble for the past several months
Mack, however, has not been the only elected official to face troubles with the IRS. Hamilton Mayor John Bencivengo is currently awaiting trial on charges of extortion and money laundering relating to a $12,000 bribe he is accused to have taken from an insurance broker. Although, county records show no evidence of any tax liens filed against him.
The notices that Mack has received are bountiful. On March 6, Mack received a Wells Fargo foreclosure notice for the 245 Tioga Street owned by him and his wife. The property is assessed at $40,200, however, records show that Mack has taken out several mortgages on the property totaling $181,500. In April 2010, Mack entered into another mortgage with Burlington County Woman , Lena Brolo, at $20,600. The list continues with a shocking $20,000 mortgage agreement for Mack’s own mayoral campaign. Yet, state campaign rules require that individuals’ contributions do not surpass $2,600 and that all outside party loans be reported.
Two weeks ago, Mack received another foreclosure notice from TD Bank. This one was for the West State Street property. City taxes on all three of the properties will exceed $12,500 and tax records demonstrate that many prior payments have been late.
We can only hope that Mayor Mack and his family make it out of this situation with their dignity intact. Contact a knowledgeable IRS tax attorney to assist you in taking the necessary precautions to avoid situations with dire consequences such as these.
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