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DEL.ICIO.USNo bailout for shoeshine man
The Atlanta Journal-Constitution
In 2003, Lawrence Hardnett may have made his worst mistake in almost five decades as a shoeshine man. He decided to start paying taxes.
Three years later, an IRS representative visited his shoeshine stand at Bennie’s Shoes of Norcross. He asked Hardnett several questions:
What’s the charge for a shine ($6 for a regular shine; $8 for a “spit” shine); how many pairs of shoes might you do on a truly busy day (30); what do tips average ($1 per pair).
Based on those calculations, the IRS informed Hardnett that he owed Uncle Sam nearly $90,000 in back taxes, interest and penalties. In this economy, for Hardnett, it may as well be $89 billion.
Hardnett agreed to a repayment plan of $175 a month, but that was before the economic downturn hit his business. In 12 years, he’s built up a loyal clientele at Bennie’s Shoes, but some regulars are feeling the economic pinch like everybody else. Getting shoes shined is a luxury, not a necessity.
“People shine their own shoes,” Hardnett said.
With his business experiencing a downturn, Hardnett fell behind on his IRS payments as well as his mortgage.
He has explained his situation to the mortgage holder and said they are trying to work with him. Uncle Sam, on the other hand, is playing hardball. A “federal lien” has been placed on Hardnett’s house for failure to make payments, according to IRS paperwork he showed me.
In recent weeks, we’ve learned about financial barons and tycoons who pocketed millions as they left lofty financial and investment firms in ruins. Then those same executives appear before Congress and offer solutions to the economic meltdown.
Will they be held accountable?
Free marketers seemingly run amok on Wall Street. Meanwhile on Main Street, the government is going after a big player — a shoeshine man. Here’s a man trying to earn a living, a man who acknowledges his wrongdoing and agreed to restitution, yet stands to lose his shirt.
“I don’t make $1,800 a month, but my expenses come to $2,400,” he told me. “It’s already the 9th of the month, I’ve only made $300. This is an honest living, but I’m at the mercy of the mortgage company and the IRS. I don’t know if there’s anything that can be done.”
It probably wouldn’t have mattered, but I wish the Wall Street high-fliers, presidential contenders and political posturers could have seen what I saw the day I talked to Hardnett, 58.
Tears.
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By LT5000
October 11, 2008 1:44 PM | Link to this
Waaaaaahhhhhh.
Another insipid Badie Blog.
Please let the financial crisis put the AJC in such a position that they have to fire this clown.
LT5000
By Stone
October 11, 2008 4:10 PM | Link to this
LT- usually you crack me up, but you’d have to be a cold SOB to not feel sorry for this guy. He shines shoes for a living, barely gets by, didn’t pay his taxes for years and now is in danger of losing everything he has because the IRS is hounding him for $90,000, an amount he’ll never pay off even if he works to the last day of his life. We all make mistakes, but to lose everything because of that mistake is heartbreaking, believe me I know. This one time Lt, have a heart.
By Paula
October 11, 2008 10:16 PM | Link to this
LT, tell me, have you ever been audited by the IRS?
By Tyrus Raymond
October 11, 2008 11:03 PM | Link to this
The poor black man and his shoe shine business is toast. He simply needs to declare bankruptcy, like Donald Trump did, and invent a new entity for his shoe biz, say, the Resoling, Reheeling, Retonguing, SOLEMAN.
They wont know what hit them.
jklol
By RS
October 11, 2008 11:43 PM | Link to this
Thank you for telling the story of Lawrence Hardnet which gave me pause for thought. I wish Mr. Hardnet well and hope that some resolution is found for him. Certainly he is willing to work, and given his experience working face to face with people my wish for him is that something turns up for him, perhaps in retail somehwere, so he will be able to meet his expenses.
However, I must disagree with your statement that his worst mistake was to start paying taxes. His worst mistake was not to pay them all along which was a crime called tax evasion. I call this a “mistake” because I don’t think of Mr. Hardnet as a criminal. However, either by ignorance, bad advice, or a feeling of necessity, or some other reason he put himself outside the law, that is to say, at risk.
In our current system, the benefits of filing and paying taxes at Mr. Hardnet’s income level may have exceeded the cost of the tax since he may have qualified for the EIC and would have been enrolled in the social security system which provides disability and other benefits as well as its well known retirement benefits, which he would be elgible for in a few years.
I have known many self employed people over the years and have known some who have not filed at all or intentionally underpaid their taxes. Many were more cynical than Mr. Hardnet and avoided the taxes intentionally. However, many others, myself included, have paid the taxes whether we agreed with the tax code or not, either out of respect for the law itself as an institution, or out of fear that the law would catch up.
I must also point out that at the present time it is counter productive for the IRS to become more aggressive in collecting taxes, especially in a case like this where they are forcing Mr. Hardnet into foreclosure at a time when foreclosures are hurting the economy. In other words, more foreclosures could worsen the economy, causing more people to miss their tax payments, causing even more foreclosures.
By DP
October 12, 2008 12:00 AM | Link to this
What a sad story. This guy needs a good taxperson (if all the questions he was asked are in the story, there was nothing about expenses), which of course he can’t afford. Now that our Senators and Representatives have given away $700 billion and are off for a while, maybe they can help persuade the IRS to cut Lawrence some slack with his $90 thousand.
By Lee
October 12, 2008 12:31 PM | Link to this
A mistake?? Knowingly engaging in TAX EVASION for 40+ years is not a mistake. It is a crime and he could be sitting in a jail cell right now.
As others have pointed out, the amount of income this guy was making would probably make his tax liability over those years nearly $0 - probably get some Earned Income Credits to boot.
The mistake he did make was trying to deal with the IRS on his own. He should have got a Tax Attorney or Enrolled Agent to represent him.
I don’t like the appearance of inequities when the fat cats walk away with their millions either. But to try to equate that to blatant tax evasion is merely playing up the emotional side of this story.
Death and taxes. It’s hard to plead ignorance in this matter.
By LT0000
October 12, 2008 4:46 PM | Link to this
LT’s can’t relate to someone trying to work hard to make a buck. He’s one of those trust fund babies who had a mommy and daddy pay his tuition and fees in college while sending him off to school in a new Honda Accord. Never had to break a sweat while working a summer job. Never had to consider joining the military to pay for school.
Note the Waaaaaahhhhhh.
That’s the noise he makes to get daddy to send him a check anytime money is tight.
By Stone
October 12, 2008 6:52 PM | Link to this
One doesn’t need to be a trust fund baby LT to have a little compassion for someone about to lose their home; just a heart. I sure hope you never fall on hard times, ‘cause it’ll be a long fall from that high horse you’re sittin’ on.
By MJK
October 12, 2008 7:55 PM | Link to this
Lawrence ought to contact Rep. Linder’s office to see if one of his staffers can make a phone call or two on his behalf to call off the dogs.
At the same time Lawrence ought to take a page from Dave Ramsey’s playbook at get a 2nd job delivering pizzas or something like that.
If his expenses are $2,400 and his income is less than $1,800 he has to do something to make up the difference.
By BW
October 12, 2008 8:36 PM | Link to this
Whoa Lee, right now, “We the Taxpayers” are bailing out Wall Street dufuses, yet some little guy is the bad guy? Man, pick up a newspaper, watch the news, get educated my man.
By Lee
October 12, 2008 9:19 PM | Link to this
BW, this past weekend, I would venture to say that there were literally millions of small business owners calculating their quarterly tax payments (it’s due in a few days). I’m sure they would like to take that money and make a couple of house payments. But no, they sign the forms, write the checks, and mail it in.
And I’m sure that the majority of them don’t like the Wall St bailout any more than the rest of us.
But to say that this guy should get a break while the rest of us were struggling to make our tax payments is a bit hypocritical.
He made his decision and he continued to make that decision for 40+ years. He has no one to blame but himself.
Or, as John Wayne said, “Life is tough. Life is tougher if you’re stupid.”
By BW
October 12, 2008 10:14 PM | Link to this
Lee, you say 40+ years, you do realize what this area was like 40+ years ago? If you did you would cut the gentleman some slack, little education was offered in these parts, but still he worked, hard times and good times.
Now you and I are not having the best of times right now but we can afford to bail out Wall Street. Just because crap flows down hill a man who has worked at a trade few would accept there is no reason to keep kicking the next man down. It’s a poor and selfish reason, you know it, you’re mad, take it out in the voting booth, not a guy who has it far rougher than you.
Peace
By Michael H. Smith
October 13, 2008 1:13 AM | Link to this
You know I’ve tried to stay out of this one but this last post is so far over the top.
You were not living in this area 40+ years ago according to your own past statements. Don’t try tell someone first hand when the best you can possibly do is relate to second hand information about what was or was not around in this area 40+ years ago.
Life is never fair. Many times few options are in the offering. Nevertheless choices made between right and wrong are always on the table for everyone to make equally. Likewise so are the consequences some suffer unfairly as a result.
There will not be a winner in this case no matter the eventual outcome. Not for the little guy involved, Mr. Hardnett, not for his mortgage holder and not even the IRS will win, monetarily.
But this is one little guy, where truth told there are probably a few million more in his situation or worse in our country this very moment. While the more corrupt, more unlawful and more criminal individuals will walk away from their wrongful deeds pleasantly rewarded.
Will there ever be any absolute fair sense of equal justice?
Not by providence as we see it and not in this life as we know it.
By BW
October 13, 2008 11:52 AM | Link to this
“You know I’ve tried to stay out of this one”, MHS, you couldn’t keep out of any discussion even if your life depended on it. Forty plus years ago this place was Eden, MHS that is called denial.
By Cindy
October 13, 2008 12:32 PM | Link to this
Hi Michael. Hi Bruce.
The IRS doesn’t have that money now, anyway. There are so many people who owe the IRS and never intended to jip them out of what’s owed. Instead of being able to make it right, they get further and further in debt and it’s always on their mind.
I propose that the IRS offer amnesty, a realistic amnesty for people who genuinely want to do right. What if the IRS granted delinquent taxes wiped clean and in return gave people the opportunity to do right from 2008 forward?
The stipulation would be that if you faulter again, you’re liable for the entire amount once again, therefore ruining your life once again. The upside would be that people could fly right from here on out.
It’s just a thought. One that could be put into practice, free up tax collectors from pursuing past debt, focus on current and future collections and let them enforce my proposed idea efficiently.
That’s my idea anyway. And I like it. They won’t do it, but it’s a good thought.
By BW
October 13, 2008 1:11 PM | Link to this
Sounds like a plan Cindy that makes sense, so you know that means the goverment would never consider it.
By dog
October 13, 2008 1:47 PM | Link to this
First off, if we let this guy off scot free, then I want a big chunk of the taxes that I have paid thus far back. Why is it that this individual can knowingly ignore paying taxes while I have to pay up or face severe penalties for tax evasion?
Don’t get me wrong. I feel for this guy. I really do. That being said, however, what they say is true: “There are only two sure things in life: death and taxes”.
And you can’t apply the law according to who you feel bad for and who you don’t. It has to be applied universally, to everyone equally. You can’t just say that this one is hard up for cash so we’ll cut him some slack. Then what? This guy makes really good money, so we’ll just take more from him?
Moreover, this wouldn’t be a problem at all if the flat tax were brought in and the IRS dismantled, taken out to pasture, and shot.
By Michael H. Smith
October 13, 2008 1:55 PM | Link to this
Bruce, as usual you are ridiculous.
By Cindy
October 13, 2008 2:02 PM | Link to this
dog, I of course feel that way too, but in life everything isn’t a level playing field. What one person needs to catch a break and get on track on isn’t necessarily what would help you. or me.
Remember…desperate times call for desperate measures.
It would be unfortunate to know someone didn’t implement an idea that could help alot of people just because they resented the fact that it can’t help them personally. Civic minded people think about what could improve things for the masses and improve the quality of life for whoever does the right thing.
I know my idea was very far-fetched and will never be used. But it could benefit everyone. The person would be relieved but also begin contributing from here on out.
By dog
October 13, 2008 2:13 PM | Link to this
Cindy, I love ya, but that just smacks of Marxism.
By Cindy
October 13, 2008 2:25 PM | Link to this
hmmm…really? Well thanks for loving me, and now i’ll need to go read about Marxism…because if I’m fitting into that category…I might need to adjust myself accordingly. I’ll get back with you about it…lemme go edumacate myself…
By Cindy
October 13, 2008 2:46 PM | Link to this
Marxism, huh? I don’t see it. Tell me more…help me understand.
My idea was for a one-time amnesty. I wasn’t suggesting we should do away with any classes of people or try to make everyone have an equal economic standpoint. Just a tax debt relief, equal to filing bankruptcy or something along those lines.
Sure am enjoying my day off… :)
By dog
October 13, 2008 3:03 PM | Link to this
Where is the money going to come from? As it is, we are giving away too much money. Why should amnesty be granted to those that choose not to pay their taxes? As I said before, I feel for the guy. But I am also paying about 40-50% of my total income in taxes. And you are saying that this guy should get off???? Seriously? If that’s the case, then I don’t feel like paying my taxes either. Can I just not do it then? You’ll defend me, right?
By Sloan
October 13, 2008 3:06 PM | Link to this
We all have to pay taxes. This guy will be punished the same way I would be if I had just decided not to pay. Maybe he should’ve thought about that before breaking the law all those years. Equal punishment for everyone, that’s what you’re always crying about, right? Now all of a sudden things shouldn’t be equal anymore?
And learn the difference between “lose” and “loose”. You’re going to come off as uneducated if you keep up the grammar problems.
By BW
October 13, 2008 3:08 PM | Link to this
Cindy an example of marxism. All people are born alike - except Republicans and Democrats. - Groucho Marx
MHS, over 40 +, 50 to be exact, the Jewish Temple downdown was bombed, it really doesn’t have the ring of an eden to me.
By Sloan
October 13, 2008 3:17 PM | Link to this
I will add that the “one-time amnesty” conversation going on in these replies is also complete nonsense. I understand though, you’re Georgians, you cannot think beyond the little box you’ve grown up in. It seems a lot of solutions to problems are addressed in the same type of childish ideas you see this state try to use to solve all their problems.
For one, with that type of a program, you are basicaly saying that the law breaker is allowed to personaly pocket the governments money. Basicaly, it’s legalizing stealing. So you get busted for tax fraud? Who cares, you get 1 freebie. If my company is pulling in 300 million a year, why not just go ahead and not pay taxes until I am caught. Look what I have to gain, vs what I have to lose.
Forgot my pay-roll taxes? Big deal. Social security? I get a free pass. I’ll still be able to take my piece of the pie when I retire regardless if I had payed into it.
Free passes will never happen, and those that think it’s a good idea are just stupid simple people.
By Cindy
October 13, 2008 3:18 PM | Link to this
I agree dog, we’re already giving away too much money. My tax idea was because I’m a soft-hearted, big whiny girl who tries to pet everybody rotten. :(
By Mark
October 13, 2008 4:15 PM | Link to this
We’re spending billions on illegal immigrants, which in turn are sending billions back home, therefore keeping it from our economy, and the IRS is picking on this poor American? WTF has this country turned into?????
By Michael H. Smith
October 13, 2008 4:37 PM | Link to this
Bruce, around the time FDR was President Detroit had what has been called the worst riot in this country. So what! Both that and your citation are irrelevant to this discussion about tax evasion and comparative punishments drawn between a little guy that was caught deliberately not paying his taxes as it appears to that of the fat cats on Wall Street who are getting off without so much as a slap on the wrist. Two wrongs never make a right. The IRS, FBI and Congress should go after every one of those that committed fraud in this financial debacle.
By Cindy
October 13, 2008 4:54 PM | Link to this
Sloan,
It was extremely classy of you to end your post by calling me a stupid simple person.
So applying your rule, my observation of you speaking to people like that must mean you grew up in a box in some state that breeds self-absorbed, rude people who feel no regard for others.
Now we’re even.
By Michael H. Smith
October 13, 2008 4:59 PM | Link to this
Cindy, if you want to give the guy a break, now as it appears he wants to go straight, cut him some slack. Adjust the payments till the economy turns around, then let him catch up the payments in full over time.
All the bank and the IRS really want is money.
Doing anything else to this guy is not going produce that money. In fact it will likely costs the rest of us more if they do take more drastic actions. The bank and the IRS will probably end up taking his house when he dies anyway, in lieu of unpaid debt.
By Cindy
October 13, 2008 5:19 PM | Link to this
I like your idea better than the one I proposed, Michael. He would be allowed to continue doing business while he pays, and just owe the rest of his life…but hey, who doesn’t, right? I could live with that.
Hardnett’s bills total $2,400 a month, so it sounds like he’s living within his means…well…when he had regular customers. This job situation is really bad. Jobs are folding up daily and people are bailing out on their obligations because of inability to pay…then the next month the ones that were owed have no money and they fold.
This whole conversation is really fruitless. I don’t like that the guy is having hard times with no end in sight. It’s time to move on from shoe-shining, at least for the time being. He can’t hold out hope for things to turn better, at the cost of losing everything. A job that pays a paycheck at regular, expected intervals is better than relying on the unknown.
By Stone
October 13, 2008 6:31 PM | Link to this
I say cut him some slack by not making him pay interest on the $90,000. He’ll never pay off the money because he’ll be killed by the interest payments. When he mercifully dies, then his family will have to assume payments. The poor guy shines shoes for Christ sake.
By BW
October 13, 2008 8:44 PM | Link to this
MHS, please give me a break, 1942, the riots over jobs. Tell me, how many left the South for the reason they knew they would never get a job before the White man in the South? Would they even stand a chance in the South?
In mine and many others opinions, the Draft Riots of New York were the worst of all, heck they even had to pull units from Grettysburg to take control. The Irish or Micks as many referred to then, stood their ground, as did the Nolly McQuires, the railroad where HST used the United States military to take over the the rail lines.
But we’re not discussing jobs or Unions are we, what happened at a Jewish Temple downtown shows the atitude of the South. Not yours, but you cannot defend the old times that many carry on today. Think about it 40 or 50 years ago is not far behind us.
By NOWICUNVME
October 13, 2008 11:22 PM | Link to this
One flat rate for the interest. Interest compounded for 40 years for a man whose “steady” income depended upon the weather, the era and the economy is ridiculous. Are we that self righteous that we can all say that we never did anything wrong in our lives? Never told a lie, never took something that didn’t belong to you, never had your tax accountant up your charity deductions for a more favorable outcome? Let’s get real people. The main thing lacking in those “give em what he deserves” responses is empathy. If you can’t engage in a outer body experience by putting yourself in the exact same postion as Mr. Hardnett, not only are you ruthless and cold hearted, but truly a poor excuse of a human being…in my opinion anyway.
By Michael H. Smith
October 14, 2008 4:15 AM | Link to this
Bruce, give yourself a break and get over your ridiculous race obsessions. The rest of us have moved on… well at least most of us have but you and the few of your remaining counterparts crazies on the other side.
To the nut-job above: It has nothing to do with self-righteousness or having done nothing wrong in our lives. Most all us have and we all have paid the price in one way or another for that wrong. If you think for one minute sad as this guy’s case may be that he is suppose to just walk away like nothing ever happened you are really mind tripping. At the moment you’re too heavenly minded to be of any earthly good.
Get in touch with reality.
You know, on earth… where the banks and the IRS exist.
By sarah
October 14, 2008 8:29 AM | Link to this
I am sending Mr. Hardnett some money. I know he was wrong, but he tried to do the right thing. I don’t believe he feels he doesn’t owe the IRS the money. He could have ignored paying taxes for many more years. He just needs some temporary help. Look around at the local commissioners and congressional representatives that owe back taxes. Mr. Hardnett has been a hard working man for years. I suggest we all help him.
By Cindy
October 14, 2008 9:34 AM | Link to this
Send me some too Sarah…i’m broke.
By Michael H. Smith
October 14, 2008 10:47 AM | Link to this
You are not a lonely soul Cindy.