Detroit's Emergency Manager forgot to pay his taxes

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Just an "oversight"...

Just an “oversight”…

Records show Detroit’s emergency manager has tax liens on his Maryland home

Detroit News: The man charged with fixing Detroit’s faltering finances has been hit with four liens in four years from the state of Maryland for unpaid taxes, records show. State records show Kevyn D. Orr, who was appointed emergency manager on Thursday, has two outstanding liens on his $1 million home in Chevy Chase, Md.,  for $16,000 in unemployment taxes in 2010 and 2011. Two other liens of more than $16,000 in unemployment and income taxes were satisfied in 2010 and 2011,  records show.
Orr said he didn’t know anything about the liens when shown records of them  Friday morning by The Detroit News. “I don’t know what they are,” Orr said, as his new boss, Gov. Rick Snyder,  sat next to him in The News’ offices. “That’s surprising to me, to be  honest.”
Late afternoon, a spokeswoman for Snyder — who appointed Orr to the $275,000  per year post Thursday — said Orr spent the day researching the issue and would pay “in full ASAP.” The Washington, D.C., bankruptcy attorney blamed the problems on an outside accountant hired to file his tax returns, said Sara Wurfel, a Snyder spokeswoman.
“There was apparently an oversight related to a childcare provider  unemployment insurance payment,” Wurfel wrote in an email. “Immediately upon learning of the potential issue just today, he took action at once to look into and resolve with the state of Maryland.”
She said Snyder’s office wasn’t aware of the liens until The News asked about  them. “It did not come up in any of the vetting,” Wurfel said.
Critics of the emergency manager said the liens are troubling, since Orr is tasked with improving tax collections. The Detroit News reported last month that only 53 percent of homeowners paid property taxes last year, leaving $246.5 million uncollected for Detroit and other governments. City records estimate  that, in 2011, Detroit collected $32 million less in income taxes than it was owed.
“It’s quite interesting that he feels he could manage the city of Detroit and he’s having trouble managing his own affairs,” said the Rev. Charles E. Williams  II, president of the National Action Network of Michigan that is fighting the appointment. “This proves the point that people aren’t perfect and democracy isn’t perfect. But our community is sticking with democracy and will continue to fight  this.”
Another opponent of the emergency manager, state Rep. Fred Durhal, D-Detroit,  said tax problems aren’t a big deal if Orr pays up. “As long as he takes care of it, it’s not an issue. I just hope he doesn’t  forget to collect our taxes,” said Durhal, a candidate for mayor.
Maryland is aggressive about placing liens on property during tax disputes, said Glen Frost, a Columbia, Md.,  tax attorney. The liens place claims on property that have to be satisfied before the  property can be sold, he said, adding that in rare instances governments can  foreclose on egregious cases.
Records show Maryland has hit Orr with a lien per year from 2009-12. A lien for $7,022 in unemployment taxes for the 2008 tax year was entered on  July 17, 2009, and satisfied on Aug. 20, 2010. Another for $9,409 in income  taxes for the 2008 tax year against Orr and his wife, Dr. Donna Neale, was  entered on Aug. 11, 2010, and satisfied on Oct. 3, 2011.
Two other liens over unemployment taxes — $6,985 for the 2010 tax year and  $9,201 for the 2010-11 tax years — are outstanding, said Frost, who reviewed the  records.
Frost and another Maryland tax attorney, Jeffrey Katz, disagreed on whether  it’s common for subjects of liens to not know about them. Frost said Maryland  typically sends separate warning and notification letters about liens. Katz said  many who are hit with them don’t know liens were placed until they try to renew  driver’s licenses and learn about them.
Orr has had liens for the past four years? Sounds like he better get a new accountant. Hopefully he’ll do a better job for the City of Detroit than he’s done with his own personal taxes.

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0 responses to “Detroit's Emergency Manager forgot to pay his taxes

  1. Tax-cheat Kevyn Orr being the “Emergency Manager” for bankrupt Detroit makes as much sense as tax-cheat Timothy Geithner being the U.S. Secretary of the Treasury.

    • Unfortunately it makes perfect sense!!! Set a thief to catch a thief. It’s easier to control the controllers when you have dirt on them. Kevyn Orr has been issued with a warning, his handlers were bringing him back into line. When you work for the Devil you are never free.

  2. he should quit or be fired

  3. Orr said he didn’t know anything about the liens when shown records of them Friday morning by The Detroit News. “I don’t know what they are,” Orr said, as his new boss, Gov. Rick Snyder, sat next to him in The News’ offices. “That’s surprising to me, to be honest.”
    As we would be told if it were us, “Ignorance of the law is no excuse.” And, “The Washington, D.C., bankruptcy attorney blamed the problems on an outside accountant hired to file his tax returns, said Sara Wurfel, a Snyder spokeswoman.” Oh, I get it it wasn’t his fault, he had hired someone else to do his taxes, so he didn’t do anything wrong. BS, when I was in the U.S. Navy no matter what happened to the ship it was the ship’s captain’s fault even if the blunder was caused by a low ranking sailor. You have to accept responsibility for mistakes/errors even when you didn’t make them. The taxes were yours and they are your responsibility.
    Too many folks will attempt to pin the blame elsewhere. This man, Mr. Orr should be fired from his new position and, furthermore, how did a public servant afford a $1Million house in MD?????? MD must pay real well!

  4. If this was a white politician , He’d be screwed . Oh , wait a minute ! That’s if he was a white REPUBLICAN politician .

  5. The Mayor could simply file for bankruptcy protection for Detroit, and the need for Mr Orr would cease to exist.
    The whole point of bankruptcy is the “protection” part isn’t it? A certain Rev. Pinkney who appears almost weekly on Webster Tarpley’s World Crisis Radio Show on Saturdays, stated that the city of Detroit is owed millions of dollars from the State of Michigan, that would really make a dent in the amount of moneythat city badly needs. He also pointed out this week that the banks who sold the city derivatives under falst pretenses, telling the city that these derivatives would prevent exactly what is happeneing to Detroit now, namely banks such as Bank of America, Morgan Chase et al, should be called to pay for the unfounded claims they made regarding the benefits to Detroit would be, which were not truthful. Now any revenue that could be used for street lighting at night, propping up the now almost non existent police force and prevent the closure of many of Detroits public schools, the banks are first in the queue to be paid, and it appears that after they have done with grabbing the lions share that the city is being slowlybut surely ruined. The “manager” can sell off the city’s assets to greedy buyers who will obviously get great deals, and if you consider what these assets are, take into consideration that the remains of the tool making industry and other once vital components of US Industry are in Detroit, together with the remains of the skilled labor force. These factories and skilled workers are the basis for any kind of economic recovery this nation might make. It seems very sinister that the smaller cities that surround Detroit were used as guinea pigs for this type of fascist takeover, to gauge the type of resistance that the citizenry might put up to this type of unconstitutional grasping of power over any recognized leadership and organization that we have demanded in the USA. This shutting down of Detroit and the end of the nexus of skilled labor and the facilities that once were the foundation of our industrial base should be stopped right now, and the importance of this is that the public will be able to stop any further power grabls that are most likely being lined up. Already a huge amount of people have left Detroit because of the lack of available employment, and the city’s coffers are being drained by the too big to fail banks who are still squeezing every dime they can out of anything and anyone who will let them on account of their supposed rights to collect on their falsely represented financial instruments. What on earth is the DOJ doing? Why aren’t they bringing charges against the banksters who are still bringing cities and citizens alike to their knees financially, emotionally, spiritually and in all other ways.
    Civilization as we once knew it is being snuffed out as we allow this to take place.
    America needs Detroit, and it’s not up for grabs like everything is in Greece. Those casinos that are producing what little revenue Detroit is bringing in are being used to feather the too big to failers nests. It’s making my head spin. Hello…………………………..
    ground control to Major Tom………………………………


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