Thursday, September 23, 2010

14,000. for 3 years... X a factor of 10 or 7 ??

The City of Grand Terrace failed to pay taxes for 32 years. Why has it offered to pay only 3 years? Why has the payment only been made to the IRS and not the Franchise Tax Board?

Does the 14,000 include tax and Interest and Penalties?

Will the City be asked to pay the other 29 years of taxes about $130,000 plus interest and penalties to the IRS and who knows how much to the Franchise Tax Board? What fund will they be robbing to pay this debt? Thanks Mr. Schwab you sure were "PROFESSIONAL" all those years you got over paid.

These details may be in the hard to obtain 80 page report that you have to pay for to get. What's up with that City Council. Post the Report or Document of the Tax Issue online just like you posted that Contract with Jack Brown. You know it CAN be done, you Chose NOT TO DO IT! You don't yet want to do things the RIGHT WAY.

VOTERS TAKE NOTE: You the Citizen and Voter should be better served by a Council and City Manager. This mess will take time and effort to clean up. Yes it may even take more sacrifice. BUT, it must be done. You don't build a new house on a rotten termite infested foundation.

The Grand Terrace City News has provided portions of the information. Apparently the IRS only will hold the city accountable for 3 years for back withholding. This does not answer the question about the Individual Council Member's and Commissioner's obligation to DECLARE the payments as Income and pay their portion of Social Security Taxes and the Income Taxes on the funds paid to them. We all know that the tax rates can be different with just a few more dollar's income.

Failure to declare income, and failure to pay taxes on income, can trigger an audit as far back as 7 years. Interest and Penalties often are greater than the amount of the unpaid taxes or the revenue that went unreported. A full audit by the IRS and Franchise Tax Board is in order, for each person being paid by the City of Grand Terrace.

This is the ice burg that is still out there for past City Council Members and all those who received non taxed stipends, and income from the City of Grand Terrace. No doubt this would include Mr. Schwab who clearly would not have declared his housing stipend, car stipend, and other payments he did not have to justify with an accounting for the actual expense being off set by the payments. Ok let's add Mr. Berry to the list of people who should be audited for the past 7 years.