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May 15, 2006 11:45 pm US/Central
Part Of Dallas Councilman Salary Seized By IRS
DALLAS (CBS 11 News) ―
If you live in Dallas, parts of your city taxes are going to pay one council members debt to the government. CBS 11 News has learned that the IRS is taking 30% of James Fantroy's city salary.
The Dallas City Council member is paid about $38,000 a year to represent his district.
CBS 11 News obtained documents from the IRS that show Fantory owes about $170,000 in back taxes and penalties, and he's paying that money back, in part, with his city salary.
Fantroy explains, "I turned my company over to my son 'cause I was in and out of the hospital all the time. He didn't know that you send 941's in every quarter."
Fantroy and other council members have the power to access taxes and if you don't pay those taxes, the city can potentially take your property. That's one reason one judicial watchdog group is concerned about Fantory's situation.
"He needs to explain to the residents of Dallas why he should sit in a position that imposes taxes that could result in the confiscation of your property if you don't pay them, when he's in a dispute with the federal government over his taxes," said Russ Verney, Judicial Watch.
Thirty percent of Fantroy's council check goes directly to the IRS, but he says he's also paying off the debt using his investments.
Fantroy says in the past year he has paid off most of the debt and now only owes about $25,000.
Members of the Dallas City Council first started receiving a salary about five years ago. The city's chief financial officer says this is the first time a council members city funded income has been seized by the IRS.
(CBS 11 News)