As Sharpton Rose, So Did His Unpaid TaxesThe Rev.
Al Sharpton, who came to prominence as an imposing figure in a track suit, shouting indignantly at the powerful, stood quietly on a stage last month at the Four Seasons restaurant, his now slender frame wrapped in a finely tailored suit, as men in power lined up to exclaim their admiration for him.
Mayor Bill de Blasio and Gov. Andrew M. Cuomo hailed him as a civil rights icon. President Obama sent an aide to read a message commending Mr. Sharpton’s “dedication to the righteous cause of perfecting our union.” Major corporations sponsored the lavish affair.
It was billed as a “party for a cause,” in honor of Mr. Sharpton’s 60th birthday. But more than a birthday celebration, or a fund-raiser for his nonprofit advocacy group
National Action Network, the event in Manhattan seemed to mark the completion of Mr. Sharpton’s decades of transition from consummate outsider to improbable insider.
“I’ve been able to reach from the streets to the suites,” he said that night.
Indeed, Mr. Sharpton’s influence and visibility have reached new heights this year, fueled by his close relationships with the mayor and the president.
Obscured in his ascent, however, has been his troubling financial past, which continues to shadow his present.
Mr. Sharpton has regularly sidestepped the sorts of obligations most people see as inevitable, like taxes, rent and other bills.
Records reviewed by The New York Times show more than $4.5 million in current state and federal tax liens against him and his for-profit businesses.
And though he said in recent interviews that he was paying both down, his balance with the state, at least, has actually grown in recent years. His National Action Network appears to have been sustained for years by not paying federal payroll taxes on its employees.
With the tax liability outstanding, Mr. Sharpton traveled first class and collected a sizable salary, the kind of practice by nonprofit groups that the United States Treasury’s inspector general for tax administration recently characterized as “abusive,” or “potentially criminal” if the failure to turn over or collect taxes is willful.
Mr. Sharpton and the National Action Network have repeatedly failed to pay travel agencies, hotels and landlords. He has leaned on the generosity of friends and sometimes even the organization, intermingling its finances with his own to cover his daughters’ private school tuition.
He has been in the news as much as ever this year, becoming a prominent advocate on behalf of the families of
Eric Garner, a Staten Island man who died in police custody, and
Michael Brown, the unarmed black teenager who was killed by a white police officer in Ferguson, Mo. He also has a daily platform through his show on MSNBC.
Behind the scenes, he has consulted with the mayor and the president on matters of race and civil rights and even the occasional high-level appointment. He was among a small group at the White House when Mr. Obama announced his nomination of Loretta E. Lynch, the United States attorney for the Eastern District of New York, to become the next attorney general.
Mr. Sharpton’s newly found insider status represents a potential financial boon for him, furnishing him with new credibility and a surge in donations. His politician-heavy birthday party, at one of New York City’s most expensive restaurants, was billed as a fund-raiser to help his organization. Mr. Obama also spoke at the organization’s convention in April, its primary fund-raising event.
But the recent troubles of
Rachel Noerdlinger, Mr. Sharpton’s closest aide for many years and more recently a top official in the de Blasio administration, served as a reminder of Mr. Sharpton’s fraught history and how easily it can spill over into the corridors of power in which he now travels.
Ms. Noerdlinger took a leave of absence from her post on Monday, after her teenage son’s arrest on trespassing charges. The decision capped weeks of scrutiny after news accounts revealed that she had failed to disclose a live-in boyfriend with a criminal record on a background questionnaire when she became the top adviser to Mr. de Blasio’s wife, Chirlane McCray.
The omission was unrelated to Mr. Sharpton, but it is the kind of paperwork oversight that has been a trademark of his nonprofit, where Ms. Noerdlinger built her career.