IRS Files Suit on Former Congressman
The IRS is suing ex-congressman Craig A. Washington over $610,000 in back taxes, interests and penalties for the years 1988 – 1990. The agency claims that Washington cheated on taxes out of 3 properties he kept out of his name in the 1990's.
According to the IRS, Washington bought the properties in 1976 and as part of his divorce settlement with his ex-wife Dorothy M.L. Washington, transferred the properties to her in 1993. Subsequently, the IRS filed tax liens on these properties in 1999. However, in 2004 the properties were again transferred from Dorothy Washington to Washington's children's trust no. 1, where Craig Washington is the sole trustee.
In light of this, the IRS contends that Washington is the true owner of the properties especially since he continues to control them. The agency has also named the Washington children's trust as a defendant in its lawsuit.
Since these events took place in the 1990's there is usually a ten year statute of limitations that applies to this case. However, the IRS argues that the ten-year time limit should be extended to almost double the time because of the nearly 10 years that Washington and his wife were declared bankrupt (1991 – 2000) and another half a year Washington tried to make an Offer in Compromise, albeit unsuccessfully.
Throughout his colorful career, Craig Washington, 68 has been no stranger to controversy. In the mid-1980's he won a case defending Eroy Brown, a state prisoner, who was accused of murdering prison warden Wallace Pack and prison farm manager Billy Max Moore in 1981. How did he do it? By convincing 3 juries that the defendant acted out of self defense and was a victim of racial discrimination by the 2 men he killed (Wallace and Moore were white men while Brown, like Washington, was black).
In 1980, Washington also successfully defended then House Speaker Billy Clayton against charges of corruption despite the government's evidence of incriminating audio tapes of the money being transferred. In yet another case, in 2003 Washington won defending Tyrone Williams who was accused of causing the deaths of 19 smuggled illegal immigrants. Williams was spared the death penalty.
For 16 years, Washington was a Texas legislative Democratic representative. Subsequently, he became a senator for an inner-city Houston district where he advocated civil rights and generally fought a generally conservative political environment.
In 1989, Washington was elected to Congress when his friend Mickey Leland died in a plane crash. He went on to serve for 2 more terms before being defeated for re-election in 1994. His bankruptcy situation at that time did not help his cause.
Washington was also not alien to money problems. In the late 1980's he defaulted on a $295,000 loan to buy a Houston apartment complex. When he was declared a bankrupt in the 1990's, his assets amounted to $550,000 but his liabilities were in excess of $1 million.
With such an eventful career and personal life, it would be interesting to see how the IRS lawsuit against Washington will finally turn out.
Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.
Related Posts
Filed under IRS Problems by 
Leave a Comment