Carol Ross Joynt used to be like me. Very rough idea what the family income is, vague knowledge of investments and annuities, no idea how to fill out an IRS return. Like me, she just spent money and let her husband pay the bills.
Unfortunately, her husband Howard, wasn’t as honest as mine. Shortly after he died unexpectedly at age 57 in 1997 she got a call from his lawyers to come to a meeting. She figured she would sign a few papers and find out how much income she and her five-year-old son could expect.
But there would be no income. In fact, there was a debt of some $3,000,000 owed the IRS, who were considering indicting her for criminal tax fraud. Her husband had owned Nathan’s, a very popular Georgetown bar and restaurant, and he had for years been failing to send along to the IRS the payroll taxes he withheld from employees’ pay.
She discovered the restaurant had not paid its way for decades. When her father-in-law was alive he would “lend” Howard a million or two to keep the place afloat. After his death Howard, unable to pay the rent and the vendors, started stealing from the IRS.
And now Carol was in their bullseye. Shocked, she told the lawyers that she had no idea this was happening. “You HAD to have known,” said a savvy young female tax lawyer who no doubt has a firm grasp of her family’s income and financial details. Carol did not, as I do not. Like me she trusted her husband entirely. Unfortunately she trusted a man who was not trustworthy. (I am SO lucky.)
Finding that her lawyers thought her guilty, Carol looked around and found another firm where the lawyers believed in her innocence. They filed for IRS Innocent Spouse relief. To be eligible for this the widow (a woman 99% of the time I’m sure) had to have taken no part in the fraud, to have known nothing of what was being done, and to have benefitted not at all from it. She met the first two criteria, but how could she not have benefitted from Howard’s doings? She thought the restaurant was profitable. She thought Howard’s trust fund from his father’s estate was much more than it was. (I believe her every word. And I can’t imagine what it was like to face this kind of financial nightmare.)
Fortunately the woman is incredibly feisty and so for years she struggled to run Nathan’s legally, get rid of employees who were stealing and otherwise sabotaging the restaurant, bring in new faces who could make changes in the now-decaying restaurant, all the while knowing the gains from her work might go to the IRS and she might not reap a dime from the business except as a paid employee. To keep going she sold their antique furniture, their house on the bay, their boat, their apartment, everything. She managed to get IRS approval to buy a small house for her and her son. And she kept working and she worried.
Meanwhile, she was trying to hold on to her job as a producer for Larry King Live. She was a specialist in “hard gets,” people like Sarah Ferguson, Paul Newman, Donatella Versace, and the pope, people who had for years been saying no to an appearance on Larry King’s show – and every other talk show on TV. (She did get the first three to appear. The pope was more elusive.) As she spent more and more time with her son, trying to keep the restaurant afloat, and dealing with the IRS, her job performance declined. And there is no mercy in TV land.
Read the book to find out how it all turned out, what the IRS decided on her Innocent Spouse appeal, what she was left with when it was all over. And read it for inspiration. Here’s a woman whose world fell apart overnight but who managed to struggle to keep Nathan’s open, to keep her head above water, to remake her TV job, to spend time with her son. And to sail eventually into calm waters.
2011 No 88 Coming soon: Emma, by Jane Austen