November 25, 2022

Several Arkansas political candidates have active tax liens in the state

Six candidates for state and federal office in the Nov. 8 general election have active tax liens ranging from just over $1,000 to just over $80,000, according to state records.

Some of the candidates hope to resolve active state tax liens soon, and some are in the process of repaying their taxes as part of a payment plan.

Candidates with active tax privileges in the state include one candidate for a U.S. Senate seat, one candidate for a prosecutor’s office, and four vying for seats in the state House of Representatives based on records provided. by the Department of Finance and State Administration Tuesday to the Arkansas Democrat-State Gazette under the Arkansas Freedom of Information Act. They include three Libertarian candidates, two Democrats and one candidate for a nonpartisan position.

Records show DA candidate Martin Lilly of Jonesboro has the highest tax lien total at $80,158.69 and Democratic U.S. Senate candidate Natalie James of Little Rock has the second-highest tax lien total at 11 $394.73.

A lien is a legal claim on property as security for payment of the debt.

Lilly, who is an assistant district attorney running for district attorney in Judicial District 2, said Thursday that a law firm that handles tax matters represented him and negotiated on his behalf regarding state tax liens and pending federal.

“We finally reached an agreement with everyone,” he said. “Hopefully the checks will come out next week.”

Lilly said the heist was with the Internal Revenue Service and “we are solving it.” He said he hopes the state and federal tax liens will be resolved next week.

“I wish it was done already,” he said.

In the Nov. 8 general election, Lilly is vying with Sonia Fonticiella of Paragould for the prosecutor’s office in Judicial District 2, which includes Clay, Craighead, Crittenden, Greene, Mississippi and Poinsett counties.

In April, he said he hoped the state tax liens against him would be resolved by the May 24 nonpartisan election. He qualified for the general election by finishing second in a three-way race with Corey Seats and Fonticiella for prosecutor. Fonticiella received 11,565 votes, compared to 9,080 for Lilly and 8,359 for Seats, according to the Secretary of State’s website.

According to the State Department of Finance, the following tax liens are filed against Martin and Sandra Lilly:

• An individual tax lien for $8,780.91 for 2019. The tax lien was filed on January 18, 2022 with the Craighead County Circuit Clerk.

• An individual tax lien for $4,231.06 for 2020. The tax lien was filed November 1, 2021 with the Craighead County Circuit Clerk.

• An individual tax lien for $41,684.28 for 2016, 2017 and 2018. The tax lien was filed September 1, 2020 with the Craighead County Circuit Clerk.

• An individual tax lien for $8,444.80 for 2013. The tax lien was filed on February 20, 2018 with the Craighead County Circuit Clerk.

• An individual tax lien for $7,897.37 for 2014. The tax lien was filed on December 20, 2017 with the Craighead County Circuit Clerk.

• An individual tax lien of $1,025.86 for 2009. The tax lien was filed May 23, 2016 with the Craighead County Circuit Clerk.

• An individual tax lien for $7,582.64 for 2015. The tax lien was filed on January 23, 2018 in Craighead County Circuit Court.

In addition, an individual tax lien was filed against Martin Lilly for $511.77 for 2012. The tax lien was filed on October 20, 2014 with the Craighead County Circuit Clerk.

Paul Gehring, assistant commissioner of revenue at the Department of Finance and State Administration, said there were eight active liens filed against these taxpayers who have a current balance totaling $77,034.37.

Scott Hardin, a spokesman for the Department of Finance, said Friday that the amount listed on the liens may not match the balance owed by the taxpayer due to interest and penalties.

Interest and penalties are applied at the legal rate until the lien is paid, he said. The totals may also differ as a result of a payment made by the taxpayer, he said.

James, a Democrat, challenges Republican U.S. Senator John Boozman in the Nov. 8 general election. Libertarian candidate Kenneth Cates of Harrison is also vying for the job.

Two state tax liens were filed against James in 2020: one for $8,981.62 in personal income tax for 2018 and another for $2,413.11 for 2019.

The first lien was filed on December 17, 2020 and the second was filed on December 30, 2020.

There are two active liens filed against this taxpayer that have a current balance totaling $15,256.25, Gehring said.

James, a real estate agent, said his taxes were filed incorrectly by an accountant and the returns did not include mileage and deductions. Then, she said, she amended her state and federal tax returns after hiring a new CPA.

James said she was waiting to hear if federal and state officials were accepting amended tax returns.

State tax issues “excite me because I see and hear the working families affected as I campaign daily,” she said.

“We should reduce bureaucracy so that it is not difficult for average workers to navigate. ‘State who need it. [in] education,” said James.

Hardin of the Department of Finance said the department initially sends the taxpayer a notice of proposed assessment regarding the amount owed, and the taxpayer can either pay the full assessment or file a protest within 60 days.

If the taxpayer does not file a protest or if the balance remains after the 60-day period, the department sends a Notice of Final Assessment to the taxpayer, he said. The Notice of Final Assessment states that if the balance is not paid within 10 days, a lien will be filed.

Ten days after the last notice, the department determines whether a lien is created and filed if the balance remains, Hardin said. If the department and the taxpayer have entered into a 12-month payment plan, “a flag is placed in our system that prevents a lien from being filed for the filing period (tax year) included in the notice of final evaluation,” he said. .

If the taxpayer does not pay the balance in full or contact the department to set up a 12-month payment plan, the finance department creates, files, and issues a bond to the office of the circuit clerk where the person resides, a- he declared. The Department also sends the taxpayer a Notice of Taxpayer Lien. Once the lien is filed, the amount owed must be paid in full for the lien to be released, he said.

STATE HOUSE CANDIDATES

The largest amount of state tax liens filed against a state House candidate is the $4,040.62 in state tax liens filed against Libertarian candidate Clayton Hall of Judsonia. He rivals Republican candidate Wayne Long of Bradford in House District 39.

The Department of Finance has active tax liens against Clayton and Mandie Hall: one filed November 18, 2021 with the White County Circuit Clerk for $3,023.95 in personal income taxes for 2019 and 2020 and one filed on December 6, 2019, for $1,016.67 for 2018.

Gehring said there remain two active liens filed against these taxpayers which have a current balance totaling $4,254.10.

Alexander’s Democratic nominee Roy Vaughn is running for state representative in District 81. He competes with Bryant’s Republican nominee RJ Hawk and Bryant’s Libertarian nominee Greg Sharp.

A state tax lien was filed against Vaughn with the Saline County Circuit Clerk on December 3, 2019, for $2,972.20 in 2018 personal income taxes. Gehring said there was a active lien filed against this taxpayer who has a current balance of $3,050.13.

Vaughn said Thursday he was repaying taxes owed under a structured repayment plan.

He said he owed state taxes because there was a discrepancy in one of his tax returns and “I ended up owing more than I thought.”

Cheryl Primm, a Libertarian Bono candidate, is running for state representative in District 30. She is vying with state representative Fran Cavenaugh, R-Walnut Ridge, in the general election. She has total active state liens of $2,122.31.

A state tax lien was filed against Primm on July 13, 2020, for $1,021.83 in personal income taxes for 2017. A second state tax lien was filed on March 23, 2021, against Primm for $1,100.48 in personal income taxes for 2018 and 2019.

Gehring said there are two active liens filed against this taxpayer that have a current balance totaling $2,290.44.

Teresa Norman, a Libertarian candidate from Salem, is running for state representative in District 2. She is running for the House job against Pocahontas’ Republican candidate Troy Steimel.

A state tax lien was filed against Teresa and Michael Norman on January 9, 2020, for $1,018.57 in personal income taxes for 2013.

Gehring said there is an active lien filed against these taxpayers that has a current balance of $1,284.55.

Information on the total number of active state tax liens and the amount of state taxes based on those liens was not available Friday from the Ministry of Finance and State Administration.

Candidate tax privileges