IRS says Schwarzenegger owes $79,000

IRS says Schwarzenegger owes $79,000
John King, Chronicle Staff Writer

Friday, November 27, 2009

(11-27) 15:23 PST SACRAMENTO -- As if a projected $20.7 billion state budget deficit wasn't bad enough, Gov. Arnold Schwarzenegger has another financial headache to deal with: a federal tax lien of $79,064.

The lien apparently involves penalties for late or incomplete information provided to the Internal Revenue Service, rather than unpaid taxes. It relates to the governor's 2004 and 2005 tax returns.

The IRS does not comment on individual cases, so it isn't clear why the penalties were assessed or why they are so large. News of the lien, however, brought a quick defense from Schwarzenegger's office on the usually sluggish day after Thanksgiving.

"The governor has paid his taxes in full and on time," press secretary Aaron McLear said in a statement this morning. "We are contacting the IRS to determine if the document in question, which appears to be a penalty for missing info and not for unpaid taxes, is legitimate and if there is any discrepancy to resolve."

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/11/27/BAKL1ARFOQ.DTL&tsp=1#ixzz0Y6jrCrXk

Pay ur taxes Governor

They could certainly use it.