The Internal Revenue Service (IRS) has filed a substantial tax lien against the Commonwealth Casino Commission (CCC), amounting to over $5.8 million in unpaid taxes dating back to at least 2022. This tax lien, recorded by the US District Court, highlights ongoing financial challenges for the CCC.
IRS Files $5.8 Million Tax Lien Against Commonwealth Casino Commission
Tax Lien Details
According to reports from Saipan news agencies, the federal tax lien covers the tax period ending December 31, 2022, and indicates that the CCC has an outstanding debt of $5,863,195.43. The IRS notice states:
“Under sections 6321, 6322, and 6323 of the Internal Revenue Code, we notify that taxes (including interest and penalties) have been assessed against [CCC]. We have made a demand for payment of this liability, but it remains unpaid. Therefore, there is a lien in favor of the United States on all property and rights to property belonging to this taxpayer for the amount of these taxes, and additional penalties, interest, and costs that may accrue,” said Revenue Officer Martin Humpert.
Response from the Commonwealth Casino Commission
In response to the IRS action, CCC Chairman Edward Deleon Guerrero suggested that the tax lien might be an error by the IRS. He stated:
“I believe the IRS has made a mistake. We are a government agency, not a small business, self-employed entity, or corporation. The Department of Finance handles all our employee payroll, and all required Social Security withholdings are managed by DOF, not CCC. Additionally, [the mailing address listed] is not our mailing address; it’s the CNMI DOF.”
Background of the Commonwealth Casino Commission
The CCC, once responsible for regulating casino licensing in Saipan, was dissolved in 2023 due to the financial impacts of the COVID-19 pandemic. The Commission played a significant role in Saipan’s gaming industry, including the revocation of the primary casino operator, Imperial Pacific’s, license in 2021. This revocation led to Imperial Pacific’s eventual delisting from the stock exchange in June 2024.
Conclusion: The Tax Lien
The IRS’s $5.8 million tax lien against the Commonwealth Casino Commission adds another layer of complexity to the CCC’s troubled history. As this situation develops, it remains to be seen how the CCC and relevant authorities will resolve the tax lien and address the discrepancies pointed out by Chairman Edward Deleon Guerrero. This event underscores the critical need for accurate financial management and compliance for regulatory bodies, especially in financially significant sectors like the gaming industry.
FAQs About the IRS Tax Lien Against the Commonwealth Casino Commission
1. What is the amount of the tax lien filed by the IRS against the Commonwealth Casino Commission (CCC)?
The IRS has filed a tax lien against the CCC for over $5.8 million, specifically $5,863,195.43 in unpaid taxes.
2. For which tax period does the lien apply?
The tax lien applies to the tax period ending December 31, 2022.
3. What did the IRS notice state regarding the tax lien?
The IRS notice stated that taxes (including interest and penalties) have been assessed against the CCC. Despite a demand for payment, the liability remains unpaid. Therefore, a lien is placed on all property and rights to property belonging to the CCC for the amount of these taxes, plus additional penalties, interest, and costs that may accrue.
4. What was CCC Chairman Edward Deleon Guerrero’s response to the tax lien?
CCC Chairman Edward Deleon Guerrero suggested that the tax lien might be an error by the IRS. He emphasized that the CCC is a government agency, not a small business, self-employed entity, or corporation, and that all payroll and required Social Security withholdings are managed by the Department of Finance, not the CCC.
5. What is the CCC’s role and status as of now?
The CCC was responsible for regulating casino licensing in Saipan but was dissolved in 2023 due to the financial impacts of the COVID-19 pandemic.
6. What significant actions did the CCC take before its dissolution?
The CCC played a significant role in the gaming industry of Saipan, including the revocation of the primary casino operator, Imperial Pacific’s, license in 2021, which eventually led to Imperial Pacific’s delisting from the stock exchange in June 2024.
7. What are the potential consequences of the tax lien for the CCC?
The tax lien could lead to further financial and operational complications for the CCC. The agency and relevant authorities will need to address and resolve the tax lien, as well as the discrepancies highlighted by Chairman Edward Deleon Guerrero.
