Jim Press, a Chrysler executive who was given a reported $50 million pay package to leave Toyota in 2007, now owes the IRS $1 million. He says it’s because he lost his bonus:
Dealbook: Mr. Press is being sued by Western Federal Credit Union in Michigan Circuit Court after failing to make two debt payments last year. In addition, the Internal Revenue Service has placed a lien of $947,409 on his Birmingham, Mich., home because of unpaid federal taxes, court filings and documents from the Oakland County Register of Deeds in Pontiac show.
Mr. Press’s financial problems may stem from the cancellation of company bonuses late in 2008 when Chrysler was seeking federal aid to avoid collapse.
“Due to the turmoil in the automobile industry and uncertainty surrounding our ownership, my request for bonus payment was denied,” Mr. Press said, after informing the Western Federal Credit Union that he would be unable to make two pending loan payments for $203,000, according to the lawsuit, portions of which were posted by The Detroit News on its Web page. “I am attempting to arrange for a loan against my future bonus with my employer, which would allow me to pay this loan off.”
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