IRS hits Todd Stroger's campaign for unpaid taxes

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Chicago Sun-Times
By Steve Patterson, Staff Reporter
September 11, 2007

MORE MISTAKES | $9,309 federal lien comes after state recommended $255,816 fine

The Internal Revenue Service has slapped a federal tax lien on Cook County Board President Todd Stroger's campaign committee.

Stroger, who took control of the $3 billion government nine months ago, was hit last month for failing to withhold income taxes from those working for his campaign, according to his campaign treasurer, Ald. Freddrenna Lyle (6th).
She said the $9,309 lien was paid off as soon as the campaign became aware of it in August.

'Willful disregard for the law'

The tax lien comes on the heels of the State Board of Elections recommending one of its biggest fines ever --$255,816 -- against Stroger's campaign, as it failed to report as many as 78 donations even six months after last year's election.

Campaign attorney Burt Odelson said that was due to "clerical errors," but one watchdog group called it a "willful disregard for the law."

A lien is filed only after the IRS has tried and failed to collect a debt, and election attorneys say it's rare to see a lien slapped on a political campaign committee.

But Odelson called this mistake "a very common error with a campaign committee, because they operate differently than a business does. It was an error and it was corrected."

Peraica rips county chief

Lyle said "we were trying too hard to do everything right," and the campaign's final 2006 withholding tax payment to the IRS got overlooked.

"I was upset because then we had to pay penalties and interest, so I had it paid within 48 hours," she said. "I definitely didn't want this to accrue."

Through a spokesman, Todd Stroger declined to comment.

Commissioner Tony Peraica, who lost last year's election to Stroger, said the latest "error" is another in a lengthy list of "very sloppy, slipshod" mistakes tied to Stroger.

"How many oversights can you have?" he asked.

In 2003, Gov. Blagojevich's campaign committee was hit with an $8,032 tax lien for failing to pay corporate income taxes. The campaign promptly paid it.