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Hit by liens, lawyer for towns takes leave
[January 13, 2009]

Hit by liens, lawyer for towns takes leave


(Buffalo News, The (NY) Via Acquire Media NewsEdge) Jan. 13--LOCKPORT –Attorney Edwin J. Shoemaker, who owes as much as $108,000 in unpaid federal income taxes, took an indefinite leave of absence from his law firm Monday, as his colleagues went to work to prevent the towns of Cambria and Somerset from taking their legal business elsewhere.



Robert S. Roberson, one of Shoemaker's law partners, said he will attend tonight's session of the Somerset Town Board, whose agenda was supposed to include the selection of legal counsel for this year.

However, Supervisor Richard J. Meyers said, "I don't suppose we're going to appoint anyone [tonight]." That would leave Shoemaker's firm as the town's counsel in a holdover capacity.


Roberson said he talked with Cambria Supervisor Wright H. Ellis on Monday and was told that Cambria would keep the firm of Andrews, Pusateri, Brandt, Shoemaker & Roberson as its counsel. The Cambria Town Board passed a resolution last week giving Ellis the final decision on hiring attorneys.

Ellis did not a return a call seeking comment.

The two towns received notices of levy from the Internal Revenue Service last week, directing them to pay the fees they would have paid the Shoemaker firm to the IRS instead.

Roberson, however, said his reading of the notice tells him that payments to the firm are not being seized by the IRS, only payments to Shoemaker personally.

Meyers disagreed. He said, "I've already been on the phone with the IRS, and they were very clear that Ed Shoemaker told them [on a form] that he was the Somerset town attorney. It's the town's responsibility to send that money to the IRS. Ed Shoemaker has clearly stated that money is due him from the Town of Somerset."

Roberson e-mailed a news release Monday that included a scan of a letter Shoemaker signed Monday. It read in full, "Please be advised that effective immediately, I am taking a personal leave of absence from the firm of Andrews, Pusateri, Brandt, Shoemaker and Roberson, P. C., for an indefinite period of time."

Roberson said, "The firm isn't happy with the situation caused by these liens." He said Shoemaker had not shared much information with his partners about the case.

The Shoemaker firm has monthly retainer agreements in force with both towns. Cambria pays $2,500 a month and Somerset, $2,300. Litigation costs are extra. Somerset has spent more than $310,000 since 2006 on litigation against AES Corp. over a tax break the power plant received from the Niagara County Industrial Development Agency.

An appeal in that case is to be argued Jan. 21 in Rochester. The court calendar of the Appellate Division of State Supreme Court says that Roberson will argue for Somerset and that his law partner Thomas H. Brandt will speak for the Barker Central School District, which also is challenging the AES tax break.

IRS spokesman Kevin McKeon said he could not settle the question of whether payments to the law firm are to be sent to the IRS instead, or only payments to Shoemaker personally.

"We're prohibited from discussing individual taxpayers, anyway," McKeon said.

An IRS lien on file in the Niagara County clerk's office since last April says Shoemaker owes $86,007.82 in "small business/ self-employment" tax for 2004 to 2006.

However, the notice Somerset received said the amount owed by Shoemaker is $108,056.75 for the same years, Councilman Daniel M. Engert said.

McKeon said, "When that lien goes to the courthouse, it's a snapshot in time. The clock keeps ticking on interest and penalties."

The state Department of Taxation and Finance also has a lien against Shoemaker for 2006 taxes totaling $9,096.10.

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