19 MAR 09: A Zero-Sum Game

So how are you doing on your tax returns? Mine have been ready for several weeks. Well, almost ready. Only the final signatures are lacking. When you owe the government money, the "rapid refund" becomes more like a slow burn....

BLOG EXCLUSIVE: Today we break news that 21 Columbus city employees are under investigation by the Georgia Department of Revenue -- or better put, they're about to be. We found out about this because a local political activist sent us e-mail:

Richard,

I hope you are doing well.

I am glad to share with you the following letters from the State Department of Revenue to our Mayor. I would be interested to learn, as I am sure your readers would be, to find out why the City has not responded.

Regards,

Josh

That's Josh McKoon, the former Muscogee County Republican Chair. You can tell our mayor has a Democratic history when McKoon is "glad" to share such letters.

But let's start at the beginning, and explain what this is all about. The Georgia Department of Revenue began checking city and county tax records last year, when a DeKalb County worker wanted to run for public office. It turned out that worker had no state withholding tax taken out of paychecks. If your withholding is zero, you might not become a hero.

Revenue Department spokesman Charles Willey told your blog Wednesday a review in Atlanta found more than 400 municipal employees had no state withholding tax taken from paychecks. But please don't get confused here - this is NOT where "Georgia 400" from Buckhead to Dawson County got its name.

Charles Willey says after the discovery in Atlanta was made, the Georgia Department of Revenue expanded its investigation to other locations across the state. So last November, a letter was sent to Mayor Jim Wetherington asking for a list of Columbus city employees with no state tax withheld from their checks. Hopefully their extra money wasn't spent buying scratch-off lottery tickets.

It's relatively easy to learn which city employees have no state tax withheld. They file state G-4 forms claiming they're exempt. By comparison, the federal W-4 instructions make it almost impossible for anyone to have zero exemptions. You have to pay Uncle Sam up-front - so executives at AIG can get their bonuses up-front.

Trouble is, you're only supposed to claim a state withholding exemption if you owe no tax. Based on my Georgia tax return book, that only seems possible if your taxable income is less than 100 dollars a year. Are that many municipal employees taking a big deduction for "combat zone pay"? In parts of Atlanta, I suppose that might be fitting....

Charles Willey says the Revenue Department is finding more city and county employees than expected claim to be exempt from withholding tax. Some do it to have extra take-home income during the year, then pay the state at tax time. But Willey admitted some may be doing it as a tax dodge. It's "pay up or shut up," and they do the latter.

Charles Willey told me state agents are finding the city and county employees claiming a withholding tax exemption are "all over the map." Some are honest, and pay the balance with their state return. But some apparently are skirting the law -- and if they really aren't exempt, they could be charged with perjury. Of course, then someone else's taxes would pay for their prison cell....

So Mayor Wetherington was sent a letter in November asking for the names of Columbus city employees claiming exemption from state withholding taxes. But last week, a second letter was sent from Georgia Revenue Commissioner Bart Graham - claiming the city never responded to that request. Doesn't Graham realize how busy the city's been, searching for new police officers?

We called the mayor's office Wednesday for an explanation about these letters - and that turned into an adventure. The woman who answered the phone heard "taxes" and transferred us to 311, the city services number. No, we don't want to donate anything extra....

After a couple more transfers, we were back at the mayor's office - and an aide to Mayor Wetherington provided us the answers. The most recent letter from Atlanta never reached the mayor. Instead, it went to the city Finance Department. At least someone in the mail room knows how to delegate authority.

The Finance Department told the mayor's office it now has complied with the state request, and provided the names of 21 city employees who claim exemptions from withholding taxes. Finance Director Pam Hodge says the names are a confidential matter -- so you'll have to guess how many of them work with the Junior Marshal's Program.

The city Finance Department reports all 21 employees in question filed G-4 forms claiming they have "zero tax liability." The only way we may find out who they are is to watch for indictments, check on arrests - or see which city workers take spring vacations in the Cayman Islands.

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E-MAIL UPDATE: Today is a big day for Columbus South development - but around here, that means yet another list of questions:

Richard, I read in the newspaper that parts of the new Infantry Museum will be opening this week. Two of those are the commercial businesses - the restaurant and the gift shop. I've heard through the grapevine that the owner of the restaurant is Pezold (the owner of all the area McDonald's and the owner of the gift shop is Paul Voorhees, owner of Ranger Joe's. Have you heard the same? I'm wondering if they had to submit bids or did they get these opportunities by knowing the right people. I would think that these businesses should do quite well as they will have a rather captive audience.

And whatever happened concerning the land across the street (the old trailer park) that the city paid a fortune for. (I think it was Paul Olson who pointed out that the city paid way more for the property than the city had it appraised for) It was said at the time that they wanted a high rise hotel on the property to accommodate the many museum visitors. Are they still working on that? Or have they dropped that idea since one new hotel opened on Victory Dr last April and two more are under construction on Victory Dr right now?

I hadn't heard any rumors about those businesses. But a check online found the Fife and Drum restaurant actually will be run by Valley Hospitality -- the people who bring you the Cannon Brew Pub. So Spencer Green Wave territory might be under attack by Red Jacket Ale.

Since this writer dropped some names: Paul Voorhees is a director of the National Infantry Association, and Jack Pezold of Pezold Management serves on the National Infantry Foundation's Board of Directors. Yet from looking at the foundation's board, you wonder why Rob Doll is building a new car dealership on the other side of town.

We had no time Wednesday to look into the other questions. And we barely have time to review the Wednesday news headlines:

+ Concerned Citizens for a Natatorium claimed city officials misled them about the plans for an indoor swimming complex on Macon Road. But they stopped short of demanding City Manager Isaiah Hugley take a flying leap from the ten-meter platform with two somersaults.

+ The U.S. Army admitted 23 soldiers from Fort Rucker were sent to Samson, Alabama during last week's murder spree. The right-wing conspiracy theorists will go ballistic over this news -- the ones who are waiting for Fort Stewart to send trained troops here, when those inevitable tax protests break out at Maple Ridge Golf Club.

+ Roundball Night in Dixieland (tm) found Auburn's men topping Tennessee-Martin 87-82, in the opening round of the National Invitational Tournament. Some people expected a huge crowd, yet the announced attendance was 4,008. It's strange but true - if the game had been televised on ESPN, the crowd probably would have been bigger.

(Auburn advances to a second-round home game Friday night against the Tulsa Golden Hurricane. I lived in Oklahoma for several years, and never understood why a college in a landlocked state didn't take the nickname Tornado instead.)

+ Instant Message to Arby's: OK, I apologize. I tried that "Roast Burger" Wednesday night, and it was pretty good. It actually has roast beef, not hamburger. But shouldn't an "All-American" version have bleu cheese, to go with the red tomato?

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