Sharpton two-step: Dances with New York’s taxman

Taxpayers across the country scrambled to file their returns this week, and many wrote checks to the government. Yet, when it comes to taxes, there’s one New York “celeb” who seems to be getting a pass from the state: the Rev. Al Sharpton.

From first-class plane tickets to a swanky apartment at the Helmsley Carlton House, it’s clear Al Sharpton has been living a life of luxury — especially for a man who’s built his career on advocacy for the underprivileged.

Yet Sharpton owes as much as $4.5 million in back taxes and penalties.

Dozens of pages of tax warrants and liens show that, at best, Sharpton has been deeply negligent, and at worst, he’s gaming the system. Which raises the question: Why does New York keep letting him get away with it?

Take three quick examples.

  • Exhibit 1: The balance on Sharpton’s tax debt has continued to grow, even after he reached a settlement with the taxman, The New York Times has reported. The snapshot view provided by New York tax warrants suggests Sharpton and three of his now-defunct companies owe the state over $876,000.

Sharpton claims he’s stuck to the payment plan detailed in his settlement. But the government structures settlements so debtors can reduce and eventually eliminate tax debt.

A growing balance is a big red flag. A state official said failure to make payments on a settlement and late filings can result in additional penalties and interest. He also said failure to pay new taxes can add additional debt.

  • Exhibit 2: New York recently allowed Sharpton to open up yet another for-profit entity, RAS Industries — even though four of his previous businesses have been dissolved in at least one jurisdiction for tax issues.

A spokesman for the Department of Taxation says “someone with tax liabilities has to be on a reasonable payment plan in order to open a new business” — a criterion Sharpton’s growing balance calls into question.

If RAS Industries runs up new tax debt, it will debunk Sharpton’s claims that he’s making a good-faith effort to settle up.

  • Exhibit 3: Sharpton’s claims of newfound diligence are even more questionable, given that his company, Sharpton Media Group, LLC, appears to exist unlawfully in New York. And yet there seem to be no consequences from the state.

When Sharpton incorporated the company in Delaware in 2004, he also registered it in New York as a so-called foreign entity.

But in 2007, Delaware listed Sharpton Media Group as “forfeited-resigned,” noting it had not filed tax reports. The company now owes the state $7,172.

New York’s Limited Liability Company Law says when an out-of-state business like Sharpton Media Group is dissolved or terminated at home, it has to file paperwork to shut down in New York, too — presumably to safeguard New York from businesses that have failed to meet obligations elsewhere.

But Sharpton Media Group remains active here, with no termination papers filed, according to the state’s Division of Corporations.

Sharpton’s spokeswoman says her boss hasn’t operated Sharpton Media Group since he reached a tax deal with federal and state authorities. “As far as any filings of dissolving entities, we are sure his attorneys have [done] so or are in the process of doing so,” she added.

But as recently as 2010 — three years after Sharpton Media Group should have officially shuttered in New York — the company helped produce a TV show called “The Education SuperHighway,” according to a news release from Sharpton’s National Action Network. (It’s not clear if the company has operated since then.)

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