Council candidate in arrears on taxes
Boyle disputes $425k liability
Brian F. O’Boyle, a candidate for councilor at large in Malden, owes about $425,000 in unpaid state and federal income taxes dating back to 2003, according to tax liens filed with the Middlesex County Registry of Deeds.
Four federal tax liens totaling $391,140.45 were placed on O’Boyle’s home at 72 Claremont St., for tax liabilities dating from 2003 until 2006, records show. He also owes $33,792 in state income taxes for the same period, and four state tax liens were placed on the property by the state Department of Revenue, according to registry documents.
But O’Boyle disputes the amount of his tax liabilities. He said he filed income taxes for the years 2003, 2004, 2005, and 2006, but they were not complete, due to uncertainty over deductions related to his work as a realtor and a private developer, he said.
“The reason why I couldn’t file completed returns was because I didn’t have my losses correct,’’ said O’Boyle, 48, who was self-employed at the time.
O’Boyle said he recently filed amended tax returns showing he owes a total of $48,000 to the state and federal governments.
“Certainly, everyone has to pay their taxes,’’ said O’Boyle, a real estate agent, during an interview at his Medford office. “I am going to pay mine. I want to make sure I pay what I actually owe.’’
He said the timing of his amended tax filings is not related to his first run for City Council. “I’ve been working on this for a while,’’ he said.
Timothy Gagnon, O'Boyle's accountant, said the new amended returns reflect itemized tax deductions. "He had a lot of real estate deals, which means he had a lot of itemized expenses," said Gagnon, a Needham-based accountant who said O'Boyle hired him a few years ago. "He needed to pick up all the exemptions and all the expenses with the different deals . . . He wasn't trying to avoid (paying) his taxes."
Spokesmen for both the Internal Revenue Service and the state Department of Revenue said they do not comment on individual tax cases.
Registry records show the first federal tax lien was placed on the Claremont Street property on Feb. 26, 2007, and the second on July 9, 2007. Two more liens were filed on Jan 7, 2008. The state placed one lien on the property on Oct. 3, 2006, and three more liens on Dec. 7, 2007, according to the registry records.
O’Boyle is a longtime real estate agent and developer. He also worked full time as an assessor for the city of Malden from 1998 until 2002, according to the city’s human resources department. For the past several months, he has worked as a clerk in the Middlesex County Registry of Deeds in Cambridge.
He said his tax issues relate mostly to his work as a realtor and private developer, and a prolonged divorce. Some of his state problems are related to capital gains taxes made on residential properties he owned in Malden and Chelsea. “It was complicated, ’’ said O’Boyle, the father of four boys ages 9 to 15.
O’Boyle was a partner in Coliseum Properties, a private real estate development company. Coliseum received low-cost federal loans to develop affordable housing at a 16-unit condominium project at two former nursing homes on Summer Street, and a 200-unit project on Main Street.
The Summer Street project was to include eight affordable housing units. The Main Street project was to include 20 affordable units. Each received financing from the North Suburban Consortium, which uses federal Housing and Urban Development HOMES funding to help develop low- to moderate-income housing. The Malden Redevelopment Authority oversees the consortium, which covers eight local communities.
But Coliseum, which ran into financing problems, never completed either project. On Summer Street, the redevelopment authority took control of the project after Coliseum faced foreclosure, a Malden Redevelopment Authority official said.
“The problem was, the project was not moving fast enough and the market was beginning to slow down,’’ said Stephen Wishoski, the authority’s executive director. “An equity investor was stepping in to foreclose. We ultimately took it over. We wanted to ensure that our investment was protected.’’
On Main Street, Coliseum received $1 million in loans from the HOME program. But the money was paid back, with interest, after a private investor bought out Coliseum, Wishoski said, adding: “We weren’t out anything.’’
Wishoski said the authority never made any loans directly to O’Boyle. “We never had any business with Brian O’Boyle alone. We were involved in two transactions with Coliseum,’’ he said.
O’Boyle said he no longer is involved with Coliseum. But business losses he had with both Coliseum and in his private real estate practice were not properly accounted for on his income taxes, he said.
“I filed income taxes, but what was filed reflected all income, no deductions,’’ he said. “They did not take into consideration losses in those businesses.’’
O’Boyle said he will leave it up to Malden voters to decide if his tax issues are a problem. “I think a lot of people who have been in the level of business I have been in would say ‘Yeah, I understand,’ but it’s all relative.’’
A former star wrestler at Malden High School, O’Boyle said his experience as a developer prompted him to run for office. “I’ve seen how political power within the city can be abused,’’ he said. “I want to see transparency.’’
In particular, O’Boyle said the city hiring policies should be looked at. “I don’t want to see the hiring of cronies at City Hall,’’ said O’Boyle, a lifelong Malden resident. “I have no issue if a person is qualified for a job, but if they’re not, they shouldn’t be hired. . . . I’m going to call it as I see it.’’
Kathy McCabe can be reached at kmccabe@globe.com 