Oakland Mayor Ron Dellums and his wife Cynthia Dellums owe at least $239,000 in back income taxes, according to the U.S. Internal Revenue Service. Sources say the couple's serious financial troubles could rule out a reelection bid next year and force him to return to his once-lucrative Washington D.C. lobbying practice.
The IRS says the Dellumses failed to pay enough personal income taxes in 2005, 2006, and 2007. On October 14, the IRS placed an official lien against all of the couple's personal property for failure to pay adequate taxes in each of those years, according to records filed with the Alameda County Recorder's Office. Typically such liens remain in place until the back taxes are paid off.
In a statement made through his spokesman Paul Rose, Dellums disputed that he and his wife owe as much money as the IRS contends, although he acknowledged that they have not paid as much taxes as they should have. "There are previous disagreements with the IRS, regarding the amount owed," Dellums said. "The issue is being addressed and the matter will be resolved in short order."
Jesse Weller, a spokesman for the Bay Area office of the IRS, declined to comment on the Dellumses' case, citing the agency's rules on taxpayer confidentiality. But a knowledgeable source says Dellums and his wife have faced financial difficulties ever since they moved back to Oakland and he took over as mayor. "Their financial issues have weighed heavily on his mind from Day One," the source said. "There's no question."
The mayor's federal income tax delinquency doesn't speak well for his ability to steward public resources in a city facing severe financial challenges. It also raises serious doubts about his ability to make good decisions. And being a tax delinquent violates his civic duty as both a public official and a citizen. "Public officials are supposed to be leaders for the rest of us," noted Oakland good-government activist Charlie Pine, a frequent critic of the mayor.
Revelations about the mayor's failure to pay taxes also could sink his chances of winning reelection - if he still harbors any plans of running again.
But that looks highly unlikely because he and his wife apparently don't earn enough from his official Oakland salary of about $184,000 a year to sustain the lifestyle with which they have become accustomed. For example, the couple rent a stately four-bedroom, three-bath home on Skyline Boulevard in the Oakland hills that appears to be out of their price range. The Dellumses don't have to reveal how much rent they pay each month, but according to public records, their home is rather large. It's 3,204 square feet and sits on 9,667-square-foot lot. According to Zillow.com, it's valued at $924,500, and was likely worth much more than that before the housing crash.
The Dellumses also are well-known for their expensive tastes. The mayor dresses in exquisitely tailored suits and his official mayoral calendar reveals that they eat out rather often, usually in upscale eateries. In addition, Cynthia Dellums has held no paid positions since he became mayor, sources said. Instead, she acts as his unpaid advisor and is a fixture at City Hall.
Dellums took an unpaid leave of absence from his D.C lobbying firm, Dellums and Associates, when he became mayor. Oakland's City Charter requires that the mayor have no outside jobs while in office. A source said the couple took a big financial hit when they came to Oakland, because he was making much more money as a lobbyist.
But that doesn't square with the IRS lien and other public records. The Dellumses appear to have gotten into serious financial trouble at least a year before he became mayor and while he was still a lobbyist. In 2005, the couple, who file jointly, failed to pay $124,199 in federal income taxes, according to the lien. In addition, federal lobbying records culled by the nonpartisan Center for Responsive Politics, reveal that Dellums' lobbying firm, Dellums and Associates, only reported $90,000 in lobbying income that year. As a result, it's unclear exactly how the Dellumses had so much tax trouble on so little income. (Although Dellums also likely gets a Congressional pension in excess of $100,000 annually, it's not clear exactly how much he receives because he does not have to report it on his official statements of economic interests filed with the city.) In short, it appears that Dellums' lobbying firm wasn't doing well and he was in serious tax trouble long before he took his mayoral oath.
The IRS lien states that the Dellumses failed to pay $66,554 in taxes in 2006, which was also before he became mayor in January 2007. Lobbying records, however, show his lobbying firm did much better that year - earning $240,000 in income. But that's still substantially lower than the $370,000 the firm reported making in 2004. The IRS also maintains that the Dellumses failed to pay $48,247 in personal income taxes in 2007 - his first year as mayor.
Regardless of when the Dellumses tax problems began, they likely have known about them for several years. The IRS routinely sends repeated notices to tax delinquents, demanding payment, before placing liens on their personal property.
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The Deadbeats, Ron and Cindy, also have a new tax lien on their Washington DC property per the DC website.
"Sources say the couple's financial troubles could rule out a reelection bid as the mayor is forced to return to lobbying." Dellums' record as mayor is more likely to impact a reelection bid than his personal finances.
Forget his money o well thats him but his failure as Oakland's mayor is of more concern. He has no voice or shows up anywhere in his own city. Get him out fast.....Oakland needs a younger, open-minded person that can make hard decisions and know the people or at least try to get to know them by showing their face around town.
Ron Dellums couldn't govern his way outta paper bag! He and his over zealous wife need to pack it up and get back to DC. I met him once before he became mayor and thought he'd be good for our city. WRONG!
The author here is putting the joy of creating friction with an imporatant political figure ahead of respect and decency towards a role model and person admired by many, and deserving of respect for his accomplishments, by all. The East Bay Express continues to have a mix of good articles, and at the same time politically slanted, and downright offensive articles such as this one. First of all, failure to pay taxes is an allegation brought by the government that entitles the taxpayer to full due process of law in the federal tax court. Some cases are purely civil and have no criminal allegation. The IRS is not an organization incapable of singling out important figures to make compliance examples; in fact it is part of their playbook to do so. And the IRS is not an organization to blindly respect either; having family in that agency, I can tell you as a fact it is discriminatory, incompetent, and curtseys to the rich and powerful that have big name CPA's and tax lawyers that cleverly manipulate them by lobbying far above their heads at the congressional level and engaging in strategic litigation. Whatever Dellum's case is, and it is most likely one having to do with the rapid devaluation of real property in the last three years of real estate crashes, and the types of losses he reported, the personal attacks on his lifestyle are very insulting to him and many people who view him as an American hero; and any one (probably not this reporter or those who commented above) that earns @300k a year and lives a comfortable lifestyle.
The reporter acts as if livinmg in a million dollar plus home on skyline, renting one, is such a big deal. That is because they do not. If they did, they would understand such rents are less than 4k a month. I lived for years in a zilo-estimated 1.4 million dollar contemporary, where the rent was 3400/month; the investor who built it paid slightly more than 6k a a month, after tax deductions @4k a month. A CPA had built that; the neighbor was a CPA who lived in his investment property. These folks made instant equity by building homes for 800k that apppraised at 1.4 million; and renting them out or living in them a few years, then selling them. The owner of the home I lived in made more than 500k simply building a home, then renting it out. In other words, it doesn't take a millionare to live on skyline; it takes shrewd financial and real estate smarts; or a realtively reasonable rent payment-go on craigs list and see for yourself. So Mr. Dellums is hardly living beyond his means; given his salary and congressional pension are nearly 300k a year, his monthly income is @15k a month AFTER taxes. Hardly unreasonable for him to live in the same homes doctors and lawyers live in, who by the way make less than this on average. If he lives in a NBA player or rap superstar home of 5 million dollar value, than one could raise questions. It is obvious the author of this article has no financial experience with real estate to make these slanderous arguments. I myself made far less than Dellums, and deserved far less, yet lived in an identical home, without any financial difficulties whatsoever; after a home, even after you lease new car, there aren't to many large bills to pay otherwise. A couple only eats 1-2k a month, and thats eating out and eatinjg good. So with 10k a month to spend, a couple can live very comfortably in the Oakland or Berkeley hills. I am particularly offended because my parents make about 30k/month gross, and to say they can't live in a nice home on skyline (they lived near broadway terrace, now near piedmont) is very offensive. My parents deserve the Americabn dream home, as do the Dellums. The authors here do not come from upper middle class backgrounds, nor do they earn upper middle class money, or they would understand what that buys.
I am more offended by the criticism of Mr. Dellums choice of suits. If anyone has earned the right to wear custom tailored suits, hasn't Mr. Dellum's? A figure from congress who has his name on the federal plaza? He should be given suits to wear by any designer, simply to model them. A man who is an African-American hero and mayor of a huge city can't wear custom tailored suits? Then who can? I mean, how can lawyers like myself who have not accomplished these things, wear nice suits? And it is important to note that public service does not pay what private practice pays; this philathropic hero has given his life to the public, whereas lawyers that pursue one bogus class action after another pay themselves millions; some who pursue class actions involving the details on Yahoo personals subscriptions, pay themselves millions as well-people who actually do not give a darn about society and the free month of service hey got everyone in the class, but about getting a million in fees of a big corporation. There are thousands of lawyers like this in California alone; Mr. Dellums is truly a great lawyer and a great man who is recognized by the lord as such. The authors of this throwaway paper do not know what service to humanity is; this might as well be a tabloid. I myself am in the process of bringing legal action against the editor; I suggest Mr. Dellums sue for slander of his reputation and character; the comments about his choice of suits are illogical and highly prejudices; the cost of a good suit is $500-$1000 on sale at Macy's; a custom tailored suit is @3 times that amount at most; hardly unreasonable given what this mayor earns. The criticism of his financial responsiblity in the context of his clothing choices is unfounded in any real number computation. It is a degrading and racially inflammoatory insult to this man's right the dignity he has earned; the real question here is why does Mr. Buel, the editor, dislike Mr. Dellums. I feel as if my hero is being undressed; I am mortified; I also feel as if I can't wear a good suit either, as I am in my thirties and haven't begun to accomplish what this role model has. I feel strongly this is an attack on colored people dressing well; the suggestion that a black male dressing well is always "irresponsible" or "gaudy" and "pimp-like" is clearly implied here; I am insulted enough that I will be contacting some designers in Manhattan to ensure the Mayor is given as many complimentary suits as he wishes. Do not insult a man of this stature for the clothes he wears; clearly he is not wearing the pricey clothes that hollywood actors wear, or does he have an Imelda Marcos style wardrobe closet. His spending on his life you have detailed here cannot be logically tied to the IRS debt he is alleged to have. Thus the writer is purposely degrading the mayor for personal reasons, and this is slander under English common law false light doctrine; this paper should be subject of a suit.
It is also an insult to so many young people who aspire to accomplish what the mayor has; it is gentrification that attempts to put the American dream out of reach of minorities; most of us will not accomplish what Dellum's has or earn as much; the suggestion here is Skyline is for rich white folks (many of whom are audited by the IRS, just not publicly leaked). And the suggestion that our views of life should be controlled by the IRS agenda, or that a man's respect is based purely on finaincial calculus, portrays a warped value system. The question here is what does the mayor deserve-the answer is clear he deserves a nice comortable home and good clothes; a professional who has done far less for society, such as an accident lawyer has the same "lavish" lifestyle.
Shame on you for insulting this man out of spite and a political agenda' I hope this paper pays a price for this.
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