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Newsweek is set to publish a highly embarrassing report on Sen. John McCain, revealing that the McCains have failed to pay taxes on their beach-front home in La Jolla, California, for the last four years and are currently in default, The Huffington Post has learned.

Under California law, once a residential property is in default for five years, it can be sold at a tax sale to recover the unpaid taxes for the taxpayers.

The McCains own at least seven homes through a variety of trusts and corporations controlled by Cindy McCain.

McCain campaign scrambling... Developing...

Update: Wow, rec listed on one of my first. Thanks everyone.

And more...

San Diego County officials, it turns out, have been sending out tax notices on the La Jolla property, an oceanfront condo, for four years without receiving a response. County records show the bills, which were mailed to a Phoenix address associated with Mrs. McCain's trust, were returned by the post office. According to a McCain campaign aide, who requested anonymity when discussing a private matter, an elderly aunt of Mrs. McCain's lives in the condo, and the bank that manages the trust has not been receiving tax bills on the property. Shortly after NEWSWEEK inquired about the matter, the McCain aide e-mailed a receipt dated Friday, June 27, confirming payment by the trust to San Diego County in the amount of $6,744.42. County officials say the trust still owes an additional $1,742 for this year, an amount that is overdue and will go into default July 1. Told of the outstanding $1,742, the aide said: "The trust has paid all bills shown owing as of today and will pay all other bills due."

Dan McAllister, treasurer- tax collector for San Diego County, said that about 3 percent of San Diego's approximately 1 million property owners default on their property taxes each year. . . . "We do hear an awful lot of excuses for why people don't pay," McAllister said. "Under the law, the property owner is responsible for keeping the address current. We're only as good as the information we are given.

No there's no problem. It's just an ECONOMIC SLOWDOWN!

Originally posted to nokona on Sat Jun 28, 2008 at 05:00 PM PDT.

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