Schwarzenegger will refile taxes to clear IRS lien

Blaming a paperwork error, Governor Arnold Schwarzenegger will refile his taxes to clear an Internal Revenue Service lien reported on a celebrity Web site.

The website TMZ.com displayed a copy of an IRS “notice of federal tax lien” filed in Los Angeles Superior Court. It indicated that the governor owes nearly $80,000 in taxes, fines, or penalties from 2004 and 2005.

Aaron McLear, Schwarzenegger’s spokesman, said the governor’s office contacted the IRS and was told there was a "paperwork tracking discrepancy." But McLear said the federal tax agency never notified Schwarzenegger, so he didn’t know about the lien.

McLear told reporters that the governor will resubmit information to the IRS, and that he expects that’ll resolve the issue. The spokeswoman emphasized that the governor has paid his taxes in full and on time.