Jul 22, 2008 6:34 pm US/Eastern
Sharpton On Installment Plan To Pay Off Millions
Feds Drop Criminal Probe Of Reverend, But Financial Problems Persist
NEW YORK (CBS) ―
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Though he may not be going to prison, Sharpton's financial troubles are far from over. (File)
CBS
After a year-long investigation, a criminal probe into the finances of the Rev. Al Sharpton and his National Action Network has been dropped.
Though he may not be going to prison, Sharpton's financial troubles are far from over.
On Tuesday, it was a subdued Sharpton reacting to word that federal prosecutors dropped their criminal probe into him and his organization. The feds had been looking into alleged financial irregularities and tax fraud.
So was Sharpton relieved?
"You act like I was charged with something. Maybe you got a press release I didn't get," he told reporters.
Part of the problem was financial records could not be produced after they were destroyed by a fire at network headquarters. And though the criminal probe is over, Sharpton and the network will pay millions in taxes, interest, and penalties.
Sharpton is the latest high-profile figure to face a tax probe. In April, actor Wesley Snipes was sentenced to three years in prison for not paying taxes. But Sharpton's attorney bristled Tuesday at any suggestion that Sharpton got special treatment.
"To have your life tied up over almost the last year and have half your staff subpoenaed at 6 o'clock in the morning is by no means special treatment," he said.
With the case now in the hands of the IRS, Sharpton will pay the fines on an installment plan, an option available to any other taxpayer in trouble.
"The important thing is to contact the IRS and start a discussion with them about how to pay your taxes," says Jeffrey Hooks of Ernst and Young. "Simply ignoring the issue is not something anyone would recommend."
The U.S. attorney's office would not confirm nor deny the criminal probe of Sharpton. The IRS also would not comment directly on his case.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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