Millionaire philanthropist Chris Abele, one of two candidates for Milwaukee County executive, was hit with a federal tax lien in 2003 over millions in unpaid federal taxes.
The lien, filed in November 2003, said Abele owed the Internal Revenue Service more than $2.3 million in income taxes for the 1999 tax year, according to records obtained from the county Register of Deeds Office. The lien was placed on his condo on N. Prospect Ave. at the time.
Records show the lien was released a little more than a month later, meaning he either paid off the sum or set up a payment plan acceptable to federal tax collectors.
One tax attorney – who is not familiar with Abeles case – said a tax lien simply means that federal officials are taking steps to try to collect money the agency believes it is owed.
The existence of a tax lien does not require that there was some malfeasance, said Robert Teuber, a tax expert with Weiss Berzowski Brady who is not supporting either candidate. It just requires that there was a disagreement on whether something was treated a certain way for taxes.
But that didnt deter a spokesman for Abeles opponent, state Rep. Jeff Stone, a Greendale Republican, from suggesting that this was yet another instance of Abeles taking his time on a matter of personal responsibility.
The Chris Abele drama is turning the county exec race into a political reality show, said Vi Hammelman, campaign manager for Stone. Some of his early supporters may want off the island. It makes one wonder whats coming next.
Abeles team downplayed the tax lien as part of a years-old legal dispute.
Spokesman Brandon Lorenz said Abele paid off the debt and was never accused of wrongdoing.
Instead of discussing old events from a decade ago, Chris is focused on his plan to create jobs and bring real change to Milwaukee County government rather than continuing the failed Scott Walker policies that caused these problems in the first place, Lorenz said in an e-mail Wednesday.
In recent weeks, Abele, a Milwaukee Democrat, has tried to turn the contest into a referendum on Walker, who was elected governor in November. Stone voted for Walkers highly controversial budget-repair bill.
The winner of the April 5 contest will finish the final year of Walkers term.
But Abele and his campaign have been repeatedly sidetracked this month.
For instance, the Journal Sentinel reported last week Abele needed seven years and a bench warrant to settle a 1996 ticket for drunken driving in Glendale.
A Milwaukee Municipal Court judge issued Abele a warrant in 2006 for failing to show up in court after he was ticketed for shooting off fireworks in the city limits, No Quarter disclosed. One of Abeles neighbors, personal injury attorney Michael Hupy, accused Abele of throwing a lighted firework at Hupy over a fence.
Also, Abele has received nearly 100 parking tickets in Milwaukee since January 2007. He also has not paid any state income taxes in at least eight years and federal income taxes in recent years. He has pointed to the fact that he doesnt receive a salary from his family foundation, Argosy, and gives large sums to charity.
But the lien makes clear he owed a lot of federal taxes on income earned in 1999.
Teuber, the tax attorney, said the IRS waits to file a lien until all appeals have been completed.
The larger the amount owed the IRS, Teuber said, the faster federal officials usually file a lien. He said $2.3 million would be considered a significant sum, even if it includes interest and penalties. The figure on the lien is the amount owed on a particular date. The payoff sum may be even higher.
Technically, federal tax collectors can file a tax lien if an individual or company fails to clear a debt 10 days after receiving a demand for payment.
The IRS thinks of a lien as no big deal, Teuber said.
It is, he said, simply considered a way to guarantee payment of a debt.
But it is usually a very big deal to those hit with a one.
According to information supplied by the IRS, the lien alerts creditors that the feds have a claim on an individuals property. That means the person cannot sell his or her house or other major belongings.
It usually takes up to 30 days after payment to release a lien. That means Abele acted very quickly to take care of his debt once the lien had been filed.
Natural curiosity
Is a former Walker aide now caught up in a secret county investigation helping Stones campaign for county exec?
Tim Russell, who worked on Walkers past campaigns and county staff, was at the courthouse last week digging through Abeles divorce file and other records, according to John Barrett, clerk of circuit court.
I assumed that it was for Stone that Russell was doing this research, said Barrett, the brother of Milwaukee Mayor Tom Barrett, who has endorsed Abele.
Last year, authorities seized Russells work computer as part of a John Doe investigation by county prosecutors. Walkers campaign has since brought on former US Attorney Steve Biskupic of Michael Best amp; Friedrich and the Washington, DC, law firm Patton Boggs.
Hammelman, campaign manager for Stone, acknowledged that Russell has done some minor volunteer work for the campaign. She also said she tried to hire Russell but said it didnt pan out.
Hammelman said she did not send him to the courthouse.
I didnt even know he was down there, she said. I think Tim was there out of curiosity.
Phil Walzak, Abeles campaign manager, said it was laughable to think that Russell, a veteran campaign hand, would be doing opposition research on his own. Walzak suggested that Stone didnt want to be linked to a former Walker aide caught up in an investigation.
As for Russell, his attorney deflected the question.
I dont represent Tim on this matter, said lawyer Michael Maistelman. I support Mr. Abele.
Daniel Bice can be contacted by phone at (414) 224-2135 or by e-mail at dbice@journalsentinel.com.
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