NY Gov. Paterson's aide O'Byrne Owes $300K In Taxes

ALBANY (AP) -- David A. Paterson's embattled chief of staff Charles O'Byrne had to pay nearly $300,000 in overdue state and federal taxes, penalties and interest - almost $100,000 more than previously reported, O'Byrne's tax attorneys said yesterday.

Lawyers for the administration aide O'Byrne told The Daily News Albany Bureau that he failed to pay taxes for five years because he has "non-filer syndrome."

The lawyers also said O'Byrne sent a last check for $3,600 to tax officials on Tuesday, days after Paterson's office said all the debts were fully paid. They said the check cut Tuesday was an intentional overpayment sent as a precaution to duplicate a September payment that hadn't yet been posted to O'Byrne's account.

The lawyers, Henry Berger and Richard Kestenbaum of Manhattan, released no checks or other records that proved a payment was made in September.

The lawyers also detailed the mental illness O'Byrne has blamed for his failure to file tax returns from 2001 through 2005. O'Byrne suffered three bouts of clinical depression and received therapy and medication, but is no longer on medication, they said. The last occurrence was in late 2006, when Paterson was elected lieutenant governor, and weeks into 2007, when O'Byrne was the lieutenant governor's chief of state making $178,500 a year.

O'Byrne said he told Paterson of the debt and illness in 2004 and again in 2007. Paterson has confirmed that account.

His attorney said O'Byrne suffered an established syndrome that affects high-functioning professionals and leads to failure to meet financial obligations when suffering clinical depression.

The tax attorneys said O'Byrne never sought to use his illness to delay paying the back taxes, but that a tax attorney probably would have helped do that if he had consulted a lawyer.

O'Byrne, a former Catholic priest who is also a lawyer, said he made the tax payments with loans of $5,000 to $20,000 from his sisters.

He also got loans of $60,000 to $100,000 from friends Jean Kennedy Smith, the sister of Sen. Edward M. Kennedy, and real estate lawyer Brian Krisberg. The lawyers wouldn't give details, but said O'Byrne will pay interest.

LATE FILER

Attorneys for Charles O'Byrne said he has paid about $300,000 in overdue state and federal taxes, penalties and interest, including:

STATE TAXES

$51,303 in back taxes

$16,711 in penalties

$12,905 in interest

FEDERAL TAXES

$127,018 in back taxes

$50,836 in penalties

$34,005 in interest

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