Al Sharpton and Back Taxes. Why is he not in prison?

Being an ethical observer of society, I am often fascinated by “privilege.” Who gets it, who gets to keep it and who uses it to their advantage?  With significant back taxes owed, the question is why is Al Sharpton not in prison?

For example, when I watch an NFL game, I am always curious to see the celebrities and the politicos who stand on the sidelines. Most of these folks have never so much as played a down of football, yet there they are, hobnobbing with the defensive linemen. Why? I do not know.

Stars and starlets, congress people and other big shots never wait in lines; not for restaurants or airline check-in or to use the restrooms for that matter.

In thinking it through, this kind of privilege doesn’t bother me all that much. After all, if I get a hankering to go to my local supermarket to buy a can of baked beans and a package of hot dogs, I am pretty sure the Paparazzi will leave me alone whereas Angelina Jolie might have a tough time of it.

What does bother me from an ethical point of view is when working stiffs like you or me do the right thing as part of the society in which we live and those who claim celebrity or political ties – don’t.

In an online article by Elizabeth MacDonald (February 5, 2015) entitled: “People Jailed for Owing Less Taxes than Al Sharpton,” the polarizing figure that Sharpton casts is once again brought into the spotlight.

The article states:

“According to a New York Times’ review of government records last fall, the MSNBC host and civil rights activist personally faces federal tax liens for more than $3 million in back taxes owed, and state tax liens of $777,657. So in total, Sharpton reportedly owes more than $3.7 million in back taxes.

His other two for-profit businesses, Raw Talent and Revals Communications, [both now defunct] owe anywhere from $717,000 to more than $800,000, based on state and federal tax liens, reports from the Times and National Review indicate. Revals Communications also either didn’t file its tax returns, or underpaid its tax bills from 1999 to 2002.”

Mr. Sharpton’s other ventures such as the National Action Network also owed more than $800,000. He has used funds from that organization to pay for his daughter’s tuition which is also illegal.

Every time Sharpton comes under scrutiny he dances away in an angry tirade. He tells us the charges against are political or racially motivated. He tells us he is disputing the amounts of money his various enterprises owe or that he is paying off the taxes. According to the article:

“It’s an open secret in Washington, DC and among IRS revenue agents and auditors that the IRS’s decentralized operation often results in disparate treatment of taxpayers. Even though there exists a large body of administrative law that says federal agencies must exercise their discretion in a consistent manner, tax lawyers have argued that does not necessarily apply to the IRS.”

Hard to believe his story

Though Sharpton can be a divisive man who has played on America’s divisions for a long time, we should not dwell entirely on him. Instead, we should focus on the ethics of privilege.

The article gives several examples of actors, singers and real estate moguls who owed much less in taxes than Sharpton who were jailed for failing to file. Some say that Sharpton’s association with the political machine, and with President Obama in particular might have something to do with his privilege. Then again both Sarah Palin and John McCain (Republicans and pretty privileged people) owed back taxes; so did Ted Kennedy (a Democrat) and in fact many congress people got away without paying back taxes for years. None of them saw the inside of a jail cell. So what gives?

Is the IRS truly inconsistent, inept or blinded by privilege? I think it may be a combination of all three. The IRS is inept, that we know. I have blogged about the waste, the uneven pursuit of tax evasion cases and the political motivations of some of its employees in being inconsistent in the application of the laws.

I do believe that even if Al Sharpton owed $10 million in back taxes he would not be jailed; he carries too much weight and clout. If I owed back taxes in the millions I shudder to think what would happen to me.

Sharpton can play all the games he wants to play, but he owes a lot of money and he has not been under scrutiny to pay it. So do many others of political power, privilege and celebrity.

I don’t mind it if Sharpton doesn’t want to wait in line at the airport, I do mind that he is not paying his fair share. Now what is the IRS going to do about it?

Ethically, they should have no choice but to act. What are your thoughts on this?