News: POLITICO New Jersey Playbook: Should Gilmore's accounting firm pay his back taxes?

Wednesday, September 28, 2022

POLITICO New Jersey Playbook: Should Gilmore's accounting firm pay his back taxes?

Sep 28, 2022

Presented by NextEra Energy Transmission

Good Wednesday morning!

Ocean County GOP Chair George Gilmore owes a lot of money to the IRS. So does his wife, Joanne, because they filed joint returns for many years.

Now Joanne Gilmore is suing the couple's retired former accountant and his firm, arguing that the accountant knew her husband owed big amounts to the IRS and should have advised her that she wouldn't face that liability if she filed her own returns based on her much more modest personal income. (I'm not sure how much exactly the Gilmores owe, but it's a lot. An IRS document filed with the Ocean County Clerk last year said $2.7 million. A recent tax judge's decision mentioned $1.6 million).

Now, I don't bring up politicians' families for the sake of it. But there's been recent evidence that Joanne Gilmore has been, in at least a couple ways, filling in for her husband in taking on politically-connected projects.

The accounting firm's lawyer, as well as Gilmore critics I talked to, believe that this lawsuit is intended to solve the Gilmores' tax liability by getting the accounting firm to pay for it. It's an interesting strategy, to say the least, and I'll follow the case as it progresses.

Read more about it here.

DAYS SINCE MURPHY REFUSED TO SAY WHETHER HIS WIFE'S NON-PROFIT SHOULD DISCLOSE DONORS: 234

TIPS? FEEDBACK? HATE MAIL? Email me at mfriedman@politico.com

HAPPY BIRTHDAY — Brick Councilmember Heather DeJong, Jersey City Office of Cultural Affairs' Christine Goodman, DHS' Adam Neary, K&L Gates' Dave Catuogno, BPI's Scott Mulhauser.

WHERE'S MURPHY? In Trenton for the ceremony to rename the New Jersey Department of Health State Office Building as the "Judith M. Persichilli Building"

QUOTE OF THE DAY: "The administration is making so much progress. We are getting more things done and there is a lot of envy and jealousy among my colleagues." — Atlantic City Mayor Marty Small, upset over a ballot question to make the city's elections non-partisan.

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WHAT TRENTON MADE

ROEING ACROSS THE DELAWARE — "More patients come to NJ for abortions after Roe reversal. And that number could grow," by The Record's Lindy Washburn: "[W]hile the number of patients coming into New Jersey for abortion services is up, it hasn't increased as dramatically as in states in the Midwest or West that neighbor others where severe new restrictions have been imposed … 'We're certainly seeing an uptick,' said Kaitlyn Wojtowicz, vice president of the Planned Parenthood Action Fund of New Jersey, while declining to specify the amount of more recent in-migration. Some centers plan to add Saturday hours and extended evening hours, she said. New Jersey's distance from abortion-restricting states, its comparatively high costs and the more aggressive outreach by states like California and New York to those in need seem to have tamped down the out-of-state influx. That may change after Election Day. If Pennsylvania voters elect Republican Doug Mastriano, a state senator, as governor, he has said he will sign a law banning abortion after a fetal heartbeat is detected, which can occur as early as six weeks' pregnancy. And in a primary debate, he said he favored a ban on abortions after conception"

AS PREDICTED, THE DELETERIOUS EFFECTS OF THE MILLIONAIRES TAX — " A fat budget, money in the bank and credit upgrades. NJ is seeing a financial turnaround," by The Record's Katie Sobko: "New Jersey's feeble financial health has been well known for years, with dismal bond ratings, unfulfilled pension payments and plenty of budgetary white-knuckling. But a significant turnaround seems to have happened in Trenton. Gov. Phil Murphy, a former Wall Street banker, came into office in 2017 on a promise of restoring the state's fiscal health, and it seems he is delivering. Helped by flush revenues and federal COVID-19 relief funding — luxuries his predecessors didn't have — Murphy now leads a state that not only can pay its bills but has more money than it knows what to do with. And after a record number of credit downgrades under past governors, New Jersey has received upgrades from all three Wall Street agencies in the last several months. And there could be more to come ….

"Murphy is, however, following a payment plan for public employee pensions laid out in law by his Republican predecessor Chris Christie after governors of both parties shortchanged the fund that pays for workers' retirements. And critics of Murphy note he's helped by federal money and that homeowners still pay more than $9,000 a year on average for property taxes, a national high."

DOC FINDS USE FOR BONDS AFTER ELIMINATION OF CASH BAIL —"DOC names interim deputy commissioner for ranking official under investigation," by NJ Advance Media's Joe Atmonavage: "The New Jersey Department of Corrections has named an acting interim deputy commissioner to fill in for the permanent appointee officials suspended earlier this year because she is under criminal investigation. Willie Bonds, a longtime DOC official who served as an assistant commissioner, will fill the post, one of the top jobs in the department that oversees the day-to-day operations of the state's prison system. He assumed the role on Sept. 15 … Bonds replaced Tracey Shimonis-Kaminski, a DOC employee for over 20 years who had held the position since 2020. He will serve in an "acting" capacity until the position is available and he can be formally appointed, DOC spokesman Dan Sperrazza said. Shimonis-Kaminski is on administrative leave with pay while she is under criminal investigation for reasons officials did not explain"

PUTTING HIS WHOLE HARDT INTO IT — "Steinhardt launches bid for Doherty's Senate seat," by New Jersey Globe's David Wildstein : "Former Republican State Chairman Doug Steinhardt [on Tuesday] kicked off his bid for State Senate in the 23rd legislative district with key endorsements from Hunterdon, Warren and Somerset counties. The incumbent, State Sen. Michael Doherty (R-Oxford), is running for Warren County Surrogate in the November general election. Warren is solidly Republican and Doherty is a safe bet to win the post. That will trigger a special election convention in December or January to replace him until the winners of the 2023 elections take office in January 2024."

—"Assembly panel to hear fix to child tax credit bill"

—" Garden State Parkway to go all E-ZPass, while paying cash may remain an option on the N.J. Turnpike"

—"Cannabis workplace guidance creates more confusion"

—Golden: "Jim Florio – Dignity in triumph, and in defeat"

—Mulshine: " With a cold winter coming, New Jersey Democrats' debate on energy heats up"

—"Is New Jersey ready to accommodate your switch to an electric vehicle?"

—"Coughlin headed to White House to discuss food security issues"

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BIDEN TIME

JAN. 6 POLL: A Rutgers-Eagleton poll released this morning finds that 56 percent of New Jerseyans view the capitol riot as an "insurrection," but opinions are, like elsewhere, split along party lines. For instance, 91 percent of Democrats call it a "protest aimed at overturning the results of a legitimate presidential election," but 58 percent of Republicans say it was a protest of an illegitimate election. You know the latter isn't true, but the point of a poll is to see where people are, not change their minds. Read the full poll results here, and I'll hopefully have more on this later.

FORMER TRUMP CAMPAIGN MANAGER SEEKS TO REBUILD COUNTY PARTY TRUMP DESTROYED — "Bill Stepien helping new super PAC aimed at electing Somerset GOP candidates," by New Jersey Globe's David Wildstein: "A prominent lobbyist and veteran campaign strategist has launched a new super PAC to help Republicans win elections for Somerset county clerk, sheriff and commissioner this year and pursue a two-year plan to retake control of county government. Jeff Michaels, a Hillsborough resident and former chief of staff to Gov. Donald DiFrancesco, said he has hired former White House political director Bill Stepien to manage Better Somerset Inc. 'There hasn't been an opportunity like this in several years,' Michaels said. 'The political environment this year for Republicans is the best in decades, including in Somerset County.' … After a 38-year dry spell, Democrats winning countywide races in 2017 when Steve Peter ousted Republican county clerk Brett Radi. Democrats won two freeholder seats in 2018 and took control of the Board of Freeholders in 2019 for the first time since 1965 when Melonie Marano unseated longtime incumbent Pat Walsh. They also flipped the sheriff's office. The last three Republicans in county government – two more freeholders and the veteran surrogate – lost re-election in 2020."

—" Kean refuses invitation to meet with Star-Ledger editorial board, says newspaper is biased"

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LOCAL

CAMDEN TOXIC PILE SHRINKING — "Toxic pile looming over N.J. city starting to be removed as lawsuit remains ongoing," by NJ Advance Media's Steven Rodas : "Roy Jones, a Camden environmental advocate, says residents have waited for years for a massive toxic pile in the city's Bergen Square neighborhood to be completely cleaned up. While that didn't happen Monday afternoon, local and state leaders got one step closer when they cut the locks off the gate to the property to officially mark the start of the process. 'People have been really frustrated about it and have endured the pile for at least 5 years. They don't believe the (removal is) happening and won't until the pile is removed, the entire neighborhood is cleaned up and people are compensated for the trauma they've experienced,'Jones, founder of the National Institute for Healthy Human Spaces, told NJ Advance Media on Monday … Not far from the Delaware River and the Camden waterfront, the pile has been a major source of dust blowing through the surrounding area."

WOODBRIDGE — "Woodbridge, NJ cancels new school after voters OK'd borrowing $35M," by NJ 101.5's Dan Alexander: "Inflation is not only driving up the cost of food and gasoline but also for new schools. After two years of planning, the Woodbridge Board of Education canceled plans to build a new Avenel Elementary School Funds for the new school were part of a referendum in 2020 approved by voters just before COVID-19 pandemic restrictions were put in place that slowed construction, Superintendent Joseph Massimino said at Thursday's meeting. The school's builder, AECOM, told Massimino that the delay and supply shortages have driven up the cost of the new building by at least $15 million, to a total of $50 million."

—"This project near Paterson's Great Falls may get a massive tax break"

—" Westfield teacher fired for 'threatening' comments has teaching license suspended"

DON'T MISS - MILKEN INSTITUTE ASIA SUMMIT : Go inside the 9th annual Milken Institute Asia Summit, taking place from September 28-30, with a special edition of POLITICO's Global Insider newsletter, featuring exclusive coverage and insights from this important gathering. Stay up to speed with daily updates from the summit, which brings together more than 1,200 of the world's most influential leaders from business, government, finance, technology, and academia. Don't miss out, subscribe today.

EVERYTHING ELSE

I CHALK IT UP INSTEAD TO THESE STATES' POLITENESS, LOW TAXES AND LACK OF CONGESTION — "Strong gun laws, low ownership combine to give NJ, NY the nation's lowest suicide rates," by WNYC's Herb Pinder: "Tough gun and violence prevention laws are keeping New Jersey and New York residents safer – from themselves. That's according to a new analysis from the Violence Policy Center, which looked at 2020 suicide data, along with gun ownership and violence prevention laws across the country. The Garden State had the nation's lowest suicide rate — 7.64 suicides per 100,000 people. Next was New York, with 8.49, followed by Rhode Island, with 8.89. The three states also have some of the nation's lowest gun ownership rates and 'stronger' violence prevention laws, according to the analysis by the VPC, which works to stop gun deaths and injuries, including through research and education campaigns."

ANTISOCIAL MEDIA — "Maryland didn't want H2Oi car rally there, so deadly event came to N.J.," by NJ Advance Media's Richard Cowen: "The muscle car mayhem that claimed two lives in Wildwood on Saturday night started innocently enough more than a decade ago around Ocean City, Maryland, when a group of Volkswagen and Audi lovers gathered to celebrate the beauty of the water-cooled engine … Fueled by social media, H2Oi grew to the point where Ocean City in 2018 adopted a law designed to keep muscle cars out. The law — which allows the town to create a temporary, Special Event Zone, reducing the speed limit to 30 mph and increasing the penalties for speeding, revving engines, and doing burnouts —apparently persuaded the organizers to steer the rally away from Ocean City, and into Wildwood, where two people were killed on Saturday when a car crashed and careened onto a sidewalk."

—"'Disturbing' that NJ lacks plan for pop-up parties, senator says"

KIDS PLAYING FOOTBALL —"After 2 deaths and spinal cord injury, N.J. football community grapples with tragedy and risk," by NJ Advance Media's Matthew Stanmyre: "Just three years ago, New Jersey high school football was being hailed across the country for implementing the most restrictive contact measures of any state, an intensive protocol intended to curb injuries in America's bone-rattling yet beloved game … But this month, New Jersey football has been rattled by the sobering realization that playing the full-contact sport will always come with risk, no matter what measures are in place. Last Wednesday, Xavier McClain, a 16-year-old sophomore at Linden High, died nearly two weeks after he suffered a serious injury during a Sept. 9 game against Woodbridge High. Two days later, Aaron Van Trease, a senior at St. John Vianney, sustained an apparent spinal cord injury during a game against Manasquan and underwent emergency surgery … 'It's a sad time for New Jersey high school football right now,' said Montgomery High coach Zoran Milich, a past president of the New Jersey Football Coaches Association. 'Soccer is a contact sport; lacrosse is a contact sport — but ours is a collision sport. There is a risk when you go out there. I feel the lessons that are being learned in football outweigh the potential risks. But then you have a tragedy like these, and you sit there and say: 'Why?'"

A GRAVE OFFENSE —"NJ man caught urinating on ex-wife's grave in Hudson Valley, NY," by NJ 101.5's Erin Vogt: "A New Jersey family is seeking justice after discovering their late mother's ex-husband, a resident of Bergen County, has repeatedly urinated on her grave not far across the state border in New York's Rockland County. Michael Murphy, of Dumont, had set up video cameras to see who was desecrating his mother's final resting place after he and his siblings found several deli-counter-style plastic bags of feces left on Linda Torello's grave … A 68-year-old Bergenfield man was ticketed for public urination by Orangetown police just after 6 a.m. on Sept. 18, according to the Rockland County District Attorney's Office … Not only had the 68-year-old man urinated at the cemetery four days in a row — but his current wife was apparently with him, waiting in their SUV as he did so, as seen on video footage."

—"Meeting people where they're at: Corner stores become mini health centers"

—"Driver who slammed into family in golf cart during Wildwood H2oi car rally faces assault charges"

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