Breaking News in North Miami: The Tax Man Cometh

The-Taxman-Cometh1North Miami City Manager Aleem Ghany is going to be one busy dude in the coming months.

According to a Memo he sent to the Mayor and Council on September 2, 2014, the Internal Revenue Service will be performing an audit of the city’s tax returns for all four quarters of 2012. This audit will include an examination of all wages paid, payroll taxes reported and paid, all retirement plans and fringe benefits, and the policy and procedures manuals for all personnel, all departments.

The IRS will also scrutinize certain vendors of the city, specifically:

3M Library Systems
Fidel Seafood Restaurant
Institute of Police Technology & Mg
Reward Fishing Fleet
Mirabito Gas
Legalshield
ESRI
Goodi-Bag Entertainment

Sources tell me that the reason these specific vendors are being targeted is because it was discovered that they may have used fraudulent taxpayer identification numbers when contracting to do business in the City of North Miami.

And as we all should know, this would be tax fraud.

I’m also told that the IRS will also consider auditing the books for the year 2011, as well, and possibly 2013.

The implications, of course, are far reaching.  When I asked who might take the fall if the IRS uncovers any dirty dealings, the first response was Good Old Andre Pierre.  It was also suggested that if Andre goes down, there’s a very good chance he’ll take former City Manager Stephen Johnson with him.

Even IF you’ve done absolutely nothing wrong, you never want the Internal Revenue Service is breathing down your neck.

This could get ugly.

Stephanie Kienzle
“Spreading the Wealth”

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13 Comments

  1. ELLEN says:

    This is absolutely awesome!

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  2. Gail says:

    The fiasco over Marie Steril’s mother’s house and HUD was in 2012. This could be a really interesting audit!

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  3. how far reaching says:

    how far reaching is this? i would like to comprehend what details this means. does this mean auditing payroll for independent contractors or only those companies. does it also include overtime for the police too and for what reasons that overtime was paid as well as approved expenses? if it means all departments all personelle this may put to rest some rumours.

    I am looking forward to the blog regulars adding their two cents. also what about the audit the city council ordered – now can they compare notes or are they different things. will they be making the information public Stephanie of this audit?

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  4. Mark Sell says:

    Mother of Mercy, could this be the end (I mean beginning) of RICOH?

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  5. Mark Sell says:

    Oops, meant “Mother of Mercy, is this the end [I mean beginning] of RICO?”

    There’s the camera company, and there’s the Racketeer Influenced and Organized and Corrupt Organizations Act (a broad-brushed sort of KILZ primer federal prosecutors have used for just about anything.) But the IRS doesn’t mess around, as any of us who have had accountants who made honest mistakes have learned. Just ask Al Capone, whose decade-long spree of tax evasion in Chicago was brought to an ignominious end by the IRS in 1931. Before the federal prosecution, let’s see what the IRS does.

    Bring your popcorn and peanuts, and let a mighty wind cleanse our fair city of North Miami. This will he verry interesting. That’s my comment from the peanut gallery.

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    1. how far reaching says:

      I want to see the hired consultants what they were paid and for what and about overtime for police and what it was used for as there are a lot of rumours about that as there have been years about other departments and “friends and family” benefits.

      But I really do not know how “deep” this audit goes – do you – and how it is different from the one that the city council is doing? And if it will be made public? ps like your writing in the biscayne times paper.

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      1. Drop the hammer says:

        You are exactly right – the hired consultants line item is a big one. Someone needs to follow the money from these “consultants”. Based on the amounts being paid to these “consultants”, they would be the highest paid employees at the City. So you know that it is just a money laundering and funneling scheme.

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  6. jay says:

    This is a different audit from the city’s forensic audit. I hope the IRS will be looking at the years during Pierre’s tenure and I am still curious why Steve Johnson left so fast and was given such a fat severance package…how do you spell buying silence?
    Let the Feds and the city audit turn over all the rocks and see what vermin crawl out. Let’s roll.

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  7. Mrs. Hanson says:

    No taxpayer liability should be assessed.

    This is wrongdoing, if any, by municipal elected officials or employees by their own personal volition.

    There should be no attorneys nor fees for defense of same provided by the municipal corporation at taxpayer expense.

    Maybe this is the last straw.

    Time for another meeting @ the Temple with B. Douglas Hindmarsh, Terry Dellerson & Mike Sher about deannexation from the city or, in the alternative,
    dissolution of the city and revert to being unincorporated Dade County.

    That would SAVE 1/3 of YOUR tax bill!

    What exactly does the city do for us other than take our money and spend it for their own pet uses?

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  8. Will says:

    quite disagree with comment above re “revert back to unicorporated MD County” – if you think the city should do a better job or more of something, call, write, attend meetings-be vocal. I have found that every time i have brought something to the cities attention they have acted. i am thrilled that the IRS is digging…and hope they go VERY deep.

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