Fiore claims compliance with IRS over tax liens
CARSON CITY — Assembly Taxation Chairwoman Michele Fiore, a lightning rod in a GOP power struggle, said Tuesday that she is “100 percent” in compliance with the IRS over almost $200,000 in tax liens, which is far less than an estimated $1 million in liens listed by the federal agency.
But the Las Vegas assemblywoman declined to provide proof of her claims, citing an ongoing investigation of her former bookkeeper, whom she did not name. And the IRS, following policy, has declined to provide any details.
She also on Tuesday defended loaning her 2014 re-election campaign money while still owing the IRS for liens on her home health care businesses. Fiore also made loans to her campaign in earlier races while a number of tax liens were listed as active. She said she needed the money to win this year’s race because she was the top Assembly Republican target with $1 million in outside money poured into the race against her.
Fiore’s finances have been scrutinized since her ouster, then reappointment, to lead the powerful taxation committee. As chairwoman, the conservative lawmaker has the power to kill bills, including calls for tax increases, without allowing such bills to be heard by the committee, although she has pledged to hear every bill sent to the panel.
She made the rounds of Nevada news media Tuesday in an attempt to clarify the facts about her financial woes and to make the case that she is qualified to lead the taxation panel.
BOOKKEEPER BLAMED
Fiore said her most recent problems with the IRS stemmed from a bookkeeper who took money from her home health care business for three years before being discovered. She declined to name the individual, saying the case is under investigation by law enforcement authorities and any further disclosures could hinder that effort.
“Once we found out what was really going on, my accountant, the IRS and I came up with a fair and workable solution and a payment plan,” she said. “I took full responsibility and I have been in full compliance ever since.”
Fiore said her older liens have been resolved with the IRS, she has been paying down her IRS bill on her new liens and that it is now less than $200,000.
Fiore said on the Alan Stock’s KDWN-AM Las Vegas radio show that she became aware of the problem with the more recent liens during the 2013 legislative session, when she received a phone call from her daughter, who was the receptionist at her business, informing her that an IRS agent was there.
The Internal Revenue Service lists 45 pending liens totaling more than $1 million against Fiore and her home health care companies for unpaid taxes dating back to 2003, according to records reviewed by the Review-Journal.
Fiore said the older liens have been resolved even though final steps are just now being taken by her firm to finally clear them off the books. She dismissed any criticism of those liens, saying they were recorded if payroll taxes were misapplied to the wrong quarter.
“It’s not that we weren’t paying the IRS, it was that it was put in the wrong quarter,” she said.
The IRS lien issue is now “dead and buried,” she said.
“If anyone wants to bring it up they can talk to themselves about it,” Fiore said. “As far as I am concerned it is laid to rest.”
Fiore declined to provide documentation of her compliance, but said the IRS would shut her business down if she was wasn’t being honest.
Raphael Tulino, an IRS spokesman, said the agency can’t discuss any individual case because of privacy considerations. All that is publicly known about the liens come from forms filed with counties.
“I’m not going to prolong the attacks on me when I have a lot to do,” Fiore said in a telephone interview. “I have documentation right now in my hand. I will not allow this to be photographed and plastered all over Google to satisfy some blogger.”
CAMPAIGN MONEY
A search of Fiore’s campaign finances by the Review-Journal shows she has poured nearly $70,000 of her own money into her political campaigns.
Her first run for office came in 2010 as a Republican candidate for Congress. She lost in the primary, but not before loaning her campaign more than $82,000, according to federal election records.
She repaid herself $7,200 from campaign funds, leaving more than $75,000 that was never recouped.
During her successful run in Assembly District 4 in 2012, Fiore spent nearly $76,000 of her own money on the campaign, according to state election records.
Fiore recouped about $55,000 of that total from the campaign, leaving $21,000 that she said she spent and never got back.
She continued to seed her political campaign coffers in 2013 and 2014 with personal contributions of more than $32,700, according to campaign records through Oct. 30, the latest date available.
During that same period she has reimbursed herself for more than $61,000 from her campaign, nearly twice what she put in, the records show.
Fiore said the loans to her campaign, and repayments, will balance out when her final report for the 2014 election period is filed on Jan. 15.
Fiore said she was glad that her Assembly District 4 race was so heavily targeted this year because it allowed Republicans running in other Assembly districts to win on Nov. 4. The Republicans picked up 10 seats in election, winning the majority for the first time since 1985.
LEADERSHIP STRUGGLE
In response to questions about the ongoing GOP leadership struggle, Fiore said she is working as majority leader to bring the 25-member caucus together.
Fiore was named as majority leader by Assembly Speaker designate John Hambrick, R-Las Vegas. She was also named chairwoman of the Taxation Committee. In an abrupt about face, Hambrick last week replaced Fiore as tax chairwoman. He then changed his mind again the next day and reaffirmed both of her positions.
Fiore said the effort to oust her came from Monte Miller, who is on the board of the Keystone Corp., a conservative, pro-business group based in Las Vegas.
Miller could not immediately be reached for comment.
“It was power brokers, it was a power play and ultimately these power brokers got spanked and sent home,” Fiore said. “The conservatives prevailed. Put your big boy boxers on and move on.”
Fiore said as chairwoman of taxation, she will hear all bills and allow votes on them despite having the authority to not even bring them forward for a committee vote.
“I, as the chairwoman of taxation, have to make sure I assist my CEO, my CEO is my governor, to make sure everything is funded,” she said.
Fiore said her first task will be to look at all the tax exemptions in place in the state tax code.
“So I am going to be looking at every one (of the exemptions) with a microscope to figure out who’s not paying,” she said.
Fiore said she has a great relationship with Assembly Minority Leader Marilyn Kirkpatrick, D-North Las Vegas, who has served on the panel.
“She has a lot of great ideas on revenue and I’m open to hearing them all,” Fiore said.
The Nevada Assembly Republican caucus has been in disarray since taking the majority in the Nov. 4 election. The caucus is nearly evenly divided into two groups, one conservative wing and a one moderate.
Concerns that some Republicans might join with the 17 Assembly Democrats to forge a new leadership in the Assembly when the session begins Feb. 2 has caused Fiore and others to threaten recalls against those who might consider doing so.
The Nevada Republican Party Executive Board added its voice to the threat as well, passing a resolution on Saturday calling for rebellious members of the Assembly GOP caucus to unite or face recall elections. The resolution targets any efforts to usurp the duly-elected leadership of the Assembly.
Fiore said she is working as majority leader to unite the caucus. About 20 of 25 members are on board, she said. Fiore did not name those who are still disappointed at the leadership decisions.
But if any member votes with Democrats on leadership decision, there will be a recall effort launched, she said.
GOP Gov. Brian Sandoval, who is expected to unveil an ambitious budget and revenue plan at his State of the State address on Jan. 15, said he is not getting involved in the Assembly leadership crisis.
Review-Journal database editor Brian Haynes contributed to this report. Contact Capital Bureau reporter Sean Whaley at swhaley@reviewjournal.com or 775-687-3900. Find him on Twitter: @seanw801.
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