Report: Rep. Charles Rangel Failed To Report $75,000 In Income From Villa

Washington, D.C. (AHN) - Another report from the New York Times has added to the controversy surrounding Rep. Charles Rangel (D-NY), who faced the threat of a censure some weeks ago for "dishonoring himself and bringing discredit to the House."

The Times said on Thursday Rangel had failed to report more than $75,000 in income on his tax returns. The congressman had allegedly earned the money from a villa at the Punta Cana Yacht Club in the Dominican Republic which he rents out for $500 or more per night.

Rangel bought the property in 1988. Profits from the villa ranged from $7,600 in 1994 to $2,700 in 2004. His attorney, Lanny Davis, told the Times the lawmaker would likely make changes to his tax returns to include income from the villa.

The 37-year veteran lawmaker was unaware that he had to declare the money as income, Davis said, and the resort, being an investment, entitled Rangel to deduct depreciation and taxes on the property. Payments from the villa were handled by Rangel's wife and were never sent directly to Rangel or his family, but used to pay for a mortgage, Davis added.

Rangel, chairman of the House Ways and Means Committee, had to give up one of four rent-stabilized apartments in July after a Times report said he had been enjoying below-market rates for the apartments in spite of aggressive evictions of less influential tenants. He moved out of one apartment he had been using as an office, in violation of city and state regulations, and asked the House Ethics panel to determine if he had violated any rules.

But the congressman was beleaguered again by controversy after a July 15 Washington Post report accused him of inappropriately soliciting donations from businesses and foundations using the congressional letterhead. The contributions were for the Rangel Center at City College in New York.

Rangel has ardently refuted the claims against him. "I've never felt more secure that I've violated no law and no spirit of the law," he told colleagues during a speech on the House floor before a vote to censure him failed.