One of Scott Murphy's companies, Small World Software, incurred three tax liens for failure to pay taxes, interest and penalties. More than nine years later, two liens are still outstanding. Murphy claims that the new ownership of the business was responsible for the warrants, but documents show that Murphy was, in fact, responsible for the liens, either as the company’s owner or as Chief Operating Officer of the very company (iXL, Inc.) where Murphy tries to place the blame.
Tax Warrant #1: $446.85 (outstanding)
* Prior to its merger with iXL, Scott Murphy’s company, Small World Software, paid its withholding taxes for the tax period ending Dec. 31, 1997, 13 days late, and failed to pay penalty and interest on this late payment. This tax warrant for 446.85 in penalty and interest has remained unpaid for more than nine years.
Tax Warrant #2: $298.50 (outstanding)
* This warrant was issued for corporate taxes on Small World Software from calendar year 1997. The company which purchased Small World Software, and in which Scott Murphy remained as COO, paid these taxes almost three months late, and was issued a warrant on the unpaid penalty and interest. This warrant has also remained unpaid for more than nine years.
Tax Warrant #3: $20,805.25 (satisfied)
* This warrant was for sales tax for a three-month period which included a time before Small World’s merger with iXL. The tax warrant for unpaid taxes, penalty and interest was filed more than a year after the taxes were due. The company in which Scott Murphy was COO paid the taxes, penalty and interest more than a year late and satisfied the lien.
Murphy has tried to pass on his fiduciary responsibility.
"Murphy said in a subsequent statement that, while he did work for the company that bought Small World Software, he did not have 'responsibility for things like taxes and filing various forms with the government.' "
To date, Scott Murphy has failed to accept responsibility for his business's tax liens – two of which are still outstanding.