A prominent Scranton attorney has been hit with a federal tax lien seeking $980,377 in unpaid individual and employer taxes, according to a public notice of the lien filed in Lackawanna County Court.
The lien against Carl J. Greco, 60, of North Washington Avenue, seeks $853,409.07 in individual income taxes for 2005-09, and $126,967.77 in employer taxes for 2008-10.
Mr. Greco's law practice handles taxation, employment, corporate, business and commercial law, as well as trusts and estates, wills and probate, adoption, family, workers' compensation and municipal law; and his employees include three other attorneys, according to his firm's website.
Mr. Greco also is a solicitor of the Scranton Sewer Authority and the solicitor of the Scranton Redevelopment Authority. He also previously was the solicitor of the city's Office of Economic and Community Development. The federal tax lien is not related to his solicitorship with the city.
Mr. Greco did not return multiple requests for comment.
Patti Blum, president of the Pennsylvania chapter of the National Association of Tax Professionals, said employer taxes, known as Type 6672 taxes, involve "trust fund" employment taxes of Social Security, Medicare and the federal income withholding tax that an employer is entrusted to hold from employees and remit to the federal government. Speaking generally about federal tax liens, Ms. Blum said they may be appealed or resolved through a compromise, except for the Type 6672 taxes.
"They (the IRS) will work with you on income taxes. They're not going to work with you on (employment) trust-fund taxes because it isn't your money. They're much stricter with trust fund taxes," Ms. Blum said. "Anyone with a federal tax lien, the faster they can pay it off and cough this money up, the better off they are."
The federal tax lien against Mr. Greco included the following "unpaid balances of assessment:"
n Type 1040 individual income taxes for: 2005, $210,879.86; 2006, $175,172.88; 2007, $167,853.74; 2008, $168,587.61; 2009, $130,914.98.
n Type 6672 employment trust fund taxes for quarter ending: June 30, 2008, $1,178.86; Dec. 31, 2008, $32,219.54; March 31, 2009, $15,008.25; June 30, 2009, $15,127.84; Sept. 30, 2009, $14,359.90; Dec. 31, 2009, $13,821.95; March 31, 2010, $9,795.85; June 30, 2010, $12,127.10; Sept. 30, 2010, $13,328.48.
The Type 1040 income taxes were assessed at various times in 2010, while the Type 6672 employer taxes all were assessed on May 30, 2011.
A separate federal tax lien also filed Tuesday in county court against Carl J. and Patricia C. Greco seeks $1.067.70 in income taxes for 2011.
The federal liens will remain in effect for 10 years unless satisfied sooner. After 10 years, a lien could be renewed, but if it is not renewed it is automatically discharged.
Meanwhile, a Pennsylvania tax lien against Mr. Greco, both individually and as president of Carl J. Greco, P.C. law offices, for $2,330.84 in employer taxes was filed in county court Monday, for the following: $681.23 for the third quarter of 2007; $1,608.61 for the first quarter of 2009; and $41 in filing fees.
A check from Carl J. Greco P.C. law offices for $2,295 was made payable to Pennsylvania and dated Feb. 28, 2013, according to a copy of the check faxed Wednesday from Mr. Greco's law office to The Times-Tribune presumably showing this lien has been satisfied.
Contact the writer: jlockwood@timesshamrock.com