Rep. Cox dealing with IRS once again

The Fresno Bee has reported U.S. Representative T.J. Cox-d owes $145,000 in unpaid federal income taxes, according to a new lien the Internal Revenue Service placed on him and his wife earlier this year.

Cox represents the 21st district, which includes Earlimart.

The lien against Cox lists about $87,000 in unpaid federal income tax for 2016 and about $57,000 in unpaid incomes tax in 2017. It says the IRS had contacted Cox and his wife about the debt prior to filing the lien.

“We have made a demand for payment of this liability, but it remains unpaid,” the lien notice, placed on Jan. 27, states. “Therefore, there is a lien in favor of the United States on all property and rights to property belonging to this taxpayer for the amount of these taxes, and additional penalties, interest, and costs that may accrue.”

A representative from Cox’s re-election campaign said he’s workingout a repayment plan with the IRS, the Bee reported.

Cox has been an entrepreneur who has dozens of businesses in areas such as real estate and health care. He has disssolved himself of all those business interests in 2019 after being elected to Congress.

His financial disclosure for 2016 and 2017 lists five different sources of income ranging from $50,000 per year up to $1 million a year. He also lists dozens of additional smaller sources of income.

The IRS also assessed a lien against Cox for unpaid income taxes in 2015. Cox paid the IRS $48,000 in 2017 to settle that lien.

The San Jose Mercury News quoted Cox in March 2018 as blaming that lien on “bureaucratic incompotence.”

“My check was stuck on the back of somebody else’s payment,” Cox told the Mercury News.

Sam Brotman, owner of the San Diego-based tax firm Brotman Law, told the Fresno Bee the lien suggests Cox has some kind of financial or bookkeeping problem.

“Multiple years of this usually means there’s either something causing someone to do this, maybe a cash flow problem, or they have a bad accountant,” Brotman told the Bee.

The IRS typically sends at least three notices by mail to a delinquent taxpayer before filing a lien. If the IRS doesn’t receive payment or a letter disputing the lien, it goes into collections.

Following two more written notices, the IRS files a lien against the person’s property, Brotman told the Bee.

“Lien filing is highly suggestive that this person does owe this liability, or they would’ve challenged it before it became a lien,” Brotman told the Bee. “I would hope a sitting U.S. congressman would not be so derelict in paying his income taxes.”

Cox now earns $174,000 a year as a U.S. Congressman. His financial disclosure in 2019 lists no other income.

Cox also has had tens of thousands of dollars in lines assessed against some of his business while he was still operating them.

At least one of those liens was settled the same day the media contacted Cox’s campaign with questions about the liens in 2019.

Brotman said Cox will be OK as long as he works out a payment system with the IRS, he told the Bee. Otherwise the IRS will begin seizing finances such as bank accounts.

“He needs to hire a good tax attorney,” Brotman told the Bee.

“This isn’t rocket science.”