A man believed to be a Morgan Hill resident has something in
common with OJ Simpson, and it’s not a Heisman Trophy.
Morgan Hill
A man believed to be a Morgan Hill resident has something in common with OJ Simpson, and it’s not a Heisman Trophy.
He, along with Simpson, is listed on the state Franchise Tax Board’s Web site as one of the state’s biggest tax scofflaws, owing more than $500,000 in personal income tax.
The state’s revenue and tax code requires the tax board to publish an annual list of the top 250 taxpayers with income tax delinquencies of more than $100,000.
Richard A. Niemi is number 101 on the list, which was updated on Oct. 11. Although the Web site lists his city of residence as Morgan Hill, he is not listed in the Morgan Hill or Gilroy phone books. An Internet search located a Richard A. Niemi in Moraga, Calif., but the number listed was for a fax machine.
The tax board cannot by law release more detailed information about taxpayers.
This is the first year the delinquency information has been listed on the Web site, according to John Bennett, public affairs spokesman for the Franchise Tax Board. It will next be updated in March, he said.
“It’s brand new, and the hope is that these folks are concerned with their reputation in their community and want to avoid the public shaming,” he said Friday. “So far, 26 of them have taken care of things, but these 224 folks listed still need to make arrangements.”Â
If people think they can simply file an extension and be done with it, certified public accountant Gregory Steinbis urges them to think twice, and, better yet, get a professional involved and do some tax planning.
“Borrowing from Uncle Sam is like borrowing from your worst credit card, borrowing from Uncle Guido,” he said. “People look at the rate, 6-8 percent, and think it’s nominal, but what they don’t figure on is the half-percent per month penalty. All of a sudden, you’ve got a whopping interest rate.”
Taxpayers on the Franchise Tax Board’s list are notified by registered letters so they will have an opportunity to pay their outstanding debt, Bennett said. They were notified 30 days before the listing was made public. Those on the list can be removed in four ways: pay the debt in full, establish a payment plan, enter into an “offer in compromise” or substantiate a bankruptcy filing.
Bennett said an “offer in compromise” can be best explained by the example of a TV or film star, who, while once earning a lot of money, has now seen his or her popularity wane so are earning less than before. The former star can make the state an offer to pay a certain amount, and officials will approve or deny it.
Niemi is joined on the list by several celebrities, including the comedian “Sinbad,” whose full name is Sinbad Adkins, along with Dionne Warwick and Simpson.
Adkins owes $2.1 million, Warwick owes nearly $2.7 million and Simpson owes more than $1.4 million. The amount owed by the entire list totals nearly $250 million.
Steinbis said he does not believe tax evasion is a big problem in Morgan Hill, but there are areas in California where it may be more of a problem. He said tax planning is important particularly for people who are self-employed. People may not realize, he said, that they need to make quarterly payments, which can lead to them becoming inadvertent scofflaws.
