In an enchanted place in a far-off land, many years ago, Tommy Eazor and I, like ships in the night, found ourselves in the same courtroom. This was Pittsburgh, in the 1970s. Eazor and I had originally met through the horse business. As the owner of a large trucking company, he could afford to go to the sales. I was writing as much about thoroughbred racing as I could, which really wasn't much, because Fort Pitt's only track was Del Miller's harness oval on the outskirts of town, and Art Rooney, owner of the Steelers, may have been the only serious horseplayer in town. Another columnist in Pittsburgh used to occasionally close his columns with "horses to watch but don't bet," which typified the town's interest in racing.
The feds were chasing Eazor for about $500,000 in allegedly unpaid taxes, and they were after me for $275. Tommy, tanned and well-scrubbed, sat in a pew with his three lawyers, the four of them looking like an ad for Brooks Brothers. I was there in shiny polyester, and had a fool for a lawyer.
I was just ahead of Eazor on the docket. The IRS flew in its attorney from Washington, D.C., and we met in a hallway before court convened. "You made me get up at 4 o'clock in the morning," he said, and I said, "You didn't have to be a lawyer."
My case was about unreimbursed business expense, and despite the judge's objection, I was allowed to read into the record about 40 newspaper expense accounts. The court reporter's recorder ran out of tape, causing a delay, and we didn't finish until well past the noon lunch break. The transcript ran 125 pages.
By mid-afternoon, my trial was over and in leaving the courtroom I walked by an impatient Eazor and his legal team. Eazor's lawyers had individual meters, and they had been running for hours and he hadn't even come before the judge yet. "Next time you want to call me for a horse story," he said, "save your dime." He seemed to be smiling. I never needed to call him again, to test whether he was smiling.
I don't even remember how my case turned out, and I can't tell you whether Eazor won or lost, either. Many years later, the IRS had picked up my scent again, this time in California, for another small amount, and this time they seemed interested in avoiding a trial. In the middle of negotiations, an IRS agent from Long Beach, whom I had never met or spoken to, made an unannounced visit to my home. I let her in, and invited her to take a chair in my home office. "This is my office at home," I said, making sure she knew where she was.
She sat there, saying nothing.
"Well," I said, "what can I do for you?"
"You could write me a check," she said.
"For what?"
"For the amount that you owe."
"Right now, I don't owe anything. This is being negotiated."
"I don't know anything about a negotiation."
"It's all in the file."
"I don't have a file."
I reached into a desk drawer and took out a manila folder, thick with correspondence and other documents.
"This is the file," I said.
"Let me take a look at it," she said.
"Sorry," I said. "You'll have to get your own file."
Then I asked for the phone number of her supervisor, preferably someone who could have her fired.
While I was on the phone to her Long Beach office, she started screaming at me. I held up the phone so the supervisor could hear.
After she left, with no file and no check, I called Long Beach back, demanding a letter of apology. None came. I wrote my Congresswoman, Jane Harman, with details of the encounter. In a few days, the letter of apology arrived.
I can't remember how that one turned out, either. There have been so many, and I don't feel like looking them up. I'm still standing, and that's what counts. Recently, Forbes decided that another of my rows with the IRS, from 2005, was worth a few hundred words. They wrote quite eloquently that I lost, although an appeal is one of my options. I wish Tommy Eazor were still alive. I'd send him a ticket for a front-row seat.


06 Jul 2010 at 04:15 am | #
Bill,
There is a line in ‘Let It Ride’ where Michelle Phillips tells Richard Dreyfuss, “People rub me for luck.”
I’m guessing people who know your history with the IRS stay away—afraid of catching your bad luck.
06 Jul 2010 at 05:25 am | #
Well, Nick, there have been a couple of meager wins along the way. When the taxman threw me a bone, I suppose.
Stay tuned for the probable appeal on the latest. The fat lady’s nowhere to be seen.
06 Jul 2010 at 07:00 am | #
I like the part about you taking the standard mileage deduction on a rental car the best.
You may have had a fool for a lawyer but you can do my taxes any time Bill.
06 Jul 2010 at 08:41 am | #
Only a real curmudgeon would take on the IRS for principle and, apparently, just-for-the-hell-of-it fun. You’re a character guy. Well done, sir!
06 Jul 2010 at 09:25 am | #
A born fighter. Keep slugging it out.
06 Jul 2010 at 09:25 am | #
Been there, done that more than once with the IRS. Recall one trip to the then Laguna Niguel federal building where I hand-trucked in two large cartons of records from my betting a couple years earlier. I had been “ticketed” because I didn’t list all of the W2-G’s from that year (the fact that I declared about ten times more in gambling income than was reported on W2-G’s didn’t seem to matter). Anyway I told the agent that the records were in chronological order with a sheet for every race that I bet on with the bet amounts and winning amounts noted. He looked through one day (about ten or so sheets) and said, “This looks pretty complete.” Then he asked to see a return from another year. I asked him “Why?” and suggested that the IRS should have a copy. He went on about the letter ("summons") that they sent me had requested that I bring that year’s return. I told him I must have missed that. Turns out he did find a mistake on the subject return and I ended up writing a check for a couple hundred. They should call those people “fishing” agents.
06 Jul 2010 at 01:48 pm | #
“Like love, fighting the tax snoops is a many-splendored thing, layer after layer of court showdowns over the years.”
Yep, I knew it all along. All of Bill’s columns repeatedly triggered my inner instincts that, indeed, here was a man who takes delight in chiseling the American public & its beyond-reproach public treasury out of a nickel here, a dime there.
Pay up, you bum!
Seriously: Your above quote was replicated to provide the context for a recommendation to read “Prisoners’ Bluff,” by Rolf Magener (1954), a crystal-clear account of two German businessmen incarcerated in India after having been taken into custody by the British in 1940.
It’s a brilliant story of their ingenious escape in 1944, followed by their rag-tag odyssey across India & into Burma, where they eventually stumbled into the Japanese lines & “surrendered” to their wartime “allies.”
That’s when things got IRSy.
The Japanese, enthusiastically leery of English spies, put them through hell in various brutal inquisitions (with starvation & dysentery thrown in gratis) for the next four months. The account of their excruciating experience, you’ll discover, sounds identical to your trail of audits & tears.
06 Jul 2010 at 03:28 pm | #
A man’s home is his castle. Therefore I sould be able to conduct business while on the throne. Or so I thought.
The extra bedroom used for my home office included its own half-bathroom. I assumed the latter’s use by visiting clients and associates as well as myself complied with the “regular and exclusive” restriction.
“Not so,” declared a taxing authority who might have allowed it if it had been used for storage only. Although I was ready to swear, I couldn’t be certain that it had never been used by an ineligible party.
Thereafter, I used it to read the “Form” regularly, but not exclusively. Where bettrer to contemmplate the Sport of Kings? Maybe a professional horseplayer could have pulled it off.
07 Jul 2010 at 10:13 am | #
Stay strong, my man. I think you’ve got them on the run. I wish I knew what schools these IRS people emerge from. JMc
07 Jul 2010 at 03:50 pm | #
Read for yourself my Forbes story about Bill Christine and the IRS. Here’s a link:
http://bit.ly/bU0NEx
09 Jul 2010 at 03:03 pm | #
Bill, there’s only one way out:
From now on, when submitting articles, the final paragraph should always be:
“Mandatory Documentation For Future Tax Deductions:
“$80.49 - Dry Cleaning – Clean, Pressed Shirt worn at Belmont (Got funny looks)
“$3.99 - Can of Air Freshener (neutralize smell of other sports writers in Press Box)”
Etc.
Audited? No more “disorganization.” Exhibit A: A “Best Of BC” book - your past work, presented in chronological order.
(Dissuade editor from attaching his/her own lists to the end of your lists. No one will want to know that in the same week that you covered the 2012 Breeders’ Cup, “Formerly known as Frank” had had a deductible sex change.)
And if the ALQ Hotel bill looks ritzy, attach it to an article about covering LeBron James at the Waldorf (“spending $3,000 an hour honing his impending PR coup – ‘Infuriate twenty million basketball fans in seven rejected cities and…’ ”).
Your expenses will look as if you spent the night on Skid Row.
*****
Happy Birthday, Bobby Frankel, wherever you are.
(It’s still weird to look at the cards of big races and not see your name.)
09 Jul 2010 at 04:03 pm | #
Thanks, all, for the comments. For my IRS relief fund, I accept postal money orders, Civil War scrip, stamps, $2 bills, postdated checks, small unmarked bills, and shekels.
09 Jul 2010 at 07:14 pm | #
Are contributions tax-deductable?
09 Jul 2010 at 10:51 pm | #
Don Reed, I would say they are, but what would I know?