An Aiken man who owes more than $1.7 million in taxes, interest and penalties could lose his home and the 150-acre property on which the Internal Revenue Service has a tax lien.
On Wednesday, the IRS and the U.S. Attorney General’s Office filed a civil lawsuit in federal court against Edward “Ed” F. Scanlon, his wife Debra J. Scanlon and the First Citizens Bank and Trust Company hoping to foreclose on that lien.
The suit alleges that the Scanlons failed jointly to fully pay federal income tax in 2002, 2003 and 2004; and that Ed Scanlon failed to pay individually in 1999 and 2000. The total debt, according to court documents, is $1,709,654.90.
First Citizens is named in the suit as it holds the mortgage on the Kitchings Mill area property which the IRS wishes to foreclose on.
“This is an ongoing, longstanding problem between me and the IRS, having to do with income I generated years ago,” Ed Scanlon said Thursday, who was unaware of the suit until contacted by the Aiken Standard. “I’m in the middle of changing my legal (and financial) representation. I hoped, I had hoped, they would defer any action for a month so I could get this worked out.”
Ed Scanlon worked for the Greater Aiken Chamber of Commerce until Dec. 31, 2012, when his three-year contract as manager of equine development ended, according to Chamber President J. David Jameson.
Debra Scanlon is a retired horse trainer, according to Ed Scanlon’s profile on the Greater Aiken Chamber of Commerce’s website.
Ed Scanlon added that the income in question was earned when he lived in Texas years ago and that he expects the issue to be dealt with soon.
“This will be settled short of foreclosure,” he said. “The amount of money they are asking for is in no relation to the amount of money I had.”
The IRS said Ed Scanlon, a retired stockbroker, horse farmer and board member of the U.S. Polo Association, owes $1,153,149.95 in taxes, interest and penalties from 1999 and 2000.
The Scanlons jointly owe $556,505.95 for years 2002-2004, according to court documents. The couple did file returns for those years, but not in a timely fashion, the IRS said. The complaint states that their 2002 and 2003 returns were filed in 2007, and their 2004 return was filed in October 2005.
The lien on the 376 Burkelo Road property near Wagener has been in place since March 25, 2008, according to the complaint.