IRS Files Lien on Simpson’s Home and Possessions

O.J. Simpson owes the federal government $685,248 in back taxes from income earned in 1994--the year he was arrested on suspicion of murdering his ex-wife and Ronald Lyle Goldman--and the Internal Revenue Service has filed a document warning that it could seize his home, cars or other property.

If Simpson does not settle his debt soon, either by writing a check immediately or by coming up with a plan to sell his property or pay in installments, the IRS could seize his Brentwood estate, tax officials said Monday. The IRS filed an official warning, known as a tax lien, with Los Angeles County on May 7.

The money was due April 15, 1995--when Simpson was in jail and on trial. He could have filed an extension pushing back the due date to fall of 1995, when he was acquitted on the murder charges and returned to his Rockingham Drive estate. It is unclear whether Simpson received an extension--but in any case, the back taxes are long overdue, and the federal government is poised to take action.

“After the funds were due, several notices were sent,” IRS spokeswoman Laurie Keleman said. “Because of the large amount owed, things accelerated quickly. Once we ask for the money, and it doesn’t come quickly, we protect the government’s interest by filing a lien on the taxpayer’s property.”

Simpson, now in London on an expense-paid speaking tour, spent an estimated $5 million to $6 million for the defense team that won his acquittals in the criminal case. His legal bills continue to mount as he fights off wrongful-death lawsuits accusing him of fatally stabbing Goldman and Nicole Brown Simpson on June 12, 1994.

The civil suits seek to hold Simpson responsible for the deaths and force him to pay the victims’ relatives compensation.

To assess Simpson’s ability to pay damages, the plaintiffs’ lawyers grilled the former football star for a full day earlier this year on his financial status. Led by Daniel M. Petrocelli, the attorney for Fred Goldman, they also reviewed documents and are questioning associates familiar with Simpson’s finances.

But even if Simpson turns out to be broke, Petrocelli said, his client will press on with the case.

“Since Day 1, the Goldmans never have expressed concern about whether funds will be available for them at the end” of the trial, Petrocelli said. “They’re concerned about getting justice in this case, about getting a jury to declare Mr. Simpson responsible for the death of their son. It’s not about money.”

The Brown family declined to discuss Simpson’s tax troubles Monday. And Simpson’s attorneys could not be reached for comment. But just three months ago, a source close to Simpson’s defense said that lead defense lawyer Robert C. Baker was on the verge of quitting because he had not been paid. The source said Simpson came up with the funds just in time to keep Baker on the civil case. Trial is scheduled to begin Sept. 9 in Santa Monica.

During the criminal trial, Simpson managed to trade on his charisma and popularity to earn money from the bleak confines of Men’s Central Jail.

He received $1 million for his book “I Want To Tell You,” in which he responded to fan letters and repeatedly proclaimed his innocence. He also earned $200,000 by signing sports cards in his cell. And he took in an undetermined sum from the sale of statues depicting him during his glory days on the football field. The statues retailed for $3,395 apiece.

After his acquittal in October, Simpson continued to boost his bank account. He charged a tabloid newspaper $450,000 for the right to photograph his homecoming party--money that would have come in after the period for which he owes back taxes. Most recently, Simpson reportedly earned a $3-million flat fee for a video that takes viewers on a mini-tour of his mansion as he ridicules the evidence against him.

While his current wealth is unknown--all financial documents unearthed in the civil case are sealed--Simpson does have considerable assets, including his gated property on North Rockingham Drive and his cars.

IRS officials are serving notice that they want him to pay his back taxes now--or else he may lose the lush estate.

“I’d assume within 30 days there will be a payment plan,” IRS spokeswoman Keleman said. “This is a large dollar amount, so we will want some money as soon as possible.”

Although eager for the money, the IRS will not sell Simpson’s house out from under him, Keleman said. The agency prefers that taxpayers sell their own property to raise funds because the prices are usually higher, she explained.

Simpson also does not have to worry about returning to jail, Keleman said. He only owes taxes for a single year, and the $685,248.69 tab includes both interest and penalties for missing the deadline.

“Cases only become criminal if there is a pattern of nonpayment and nonfiling, or a pattern of filing false tax returns, unreported income . . . that type of thing,” Keleman said. “I don’t see anything like that in this case.”