Idaho Legislator Owes $500k to IRS

photo via

Here’s one that TMZ missed.  Not enough star power.

Idaho legislator Phil Hart is not giving politicians a very good name.  He is a tax protestor (one of those eccentric believers in unfettered freedom to do what they please which often includes taking the position that the federal income tax is unconstitutional).  Many tax protestors believe that payment of income tax is optional, and Phil Hart has definitely exercised the option to NOT pay.  Now his federal and state tax debt stretches back to the mid 1990s.

Hart’s tax problems have been public for some time now, but new details emerged when he filed bankruptcy last month.  The bankruptcy filings reveal that his total debt is over $600,000 and over $500,000 of that represents money owed for delinquent federal income taxes.

We also learn that (according to Mr. Hart) 100% of his income was subject to wage garnishment during the past seven years.  I wonder if this is accurate because the IRS isn’t supposed to take 100% of w-2 income.  Maybe the feds were taking their share, then the state was taking the rest.

And finally, we see that Rep. Hart was basically hiding assets to steer clear of the IRS.  He put his property into a sham trust to try to keep it out of the hands of the government.  But the Dept of Justice sees right through this; the IRS will undoubtedly get at least some of what is owed from the sale of this property.  See full story here.