IRS Drops Schwarzenegger Tax Lien

The Internal Revenue Service has lifted a $79,064 tax lien on California Governor Arnold Schwarzenegger.

A computer glitch in Schwarzenegger’s payroll tax records in 2004 and 2005 prompted the IRS to begin investigating the former action star and bodybuilder (see IRS Places $79,064 Lien on Schwarzenegger). The IRS placed the lien last May in the mistaken belief that Schwarzenegger had not paid payroll taxes for his household help when he actually had, according to the governor’s office.

Schwarzenegger did not know until late last year that the IRS had been sending notices to his home instead of his office because he does not receive mail at home as a security precaution, according to the Associated Press.

Schwarzenegger will still be assessed $20.50 for administrative fees, but that’s far less than the original lien of nearly $80,000. The IRS released the lien on Jan. 20, according to the San Francisco Chronicle.