Norwich - The Internal Revenue Service has filed a tax lien against local businessman Zane Megos for more than $88,000 for unpaid federal income taxes from the 2005 and 2007 tax years, according to the notice of lien placed in Norwich land records.

The lien for $88,506.49 was filed Monday by the IRS Small Business/Self Employed Area #1 and breaks down to $67,785.15 in an "unpaid balance" for 1040 income tax in 2005 and $20,721.34 in unpaid taxes for 2007. The notice said the tax lien was assessed Nov. 14 and listed the "last day for refiling" as Dec. 14, 2021.

In an investigation of Megos' activities, The Day interviewed more than a dozen people who said they gave Megos cash deposits to rent apartments or purchase houses in Norwich and New London that never became available.

Some complainants have won judgments in Small Claims Court or in civil court proceedings, but most have not been paid. Two people said Megos gave them part of their money back, but they are seeking the rest of their deposits.

Two of the Norwich houses, owned by Megos under company names, Meyers & Bailey Investment Co. and DECO Drive LLC, have been condemned by city building inspectors. In other cases, Megos allegedly told potential renters and buyers that he was representing the owners.

Norwich police are investigating whether to press criminal charges, and the state Department of Consumer Protection's Trade Practices Division is investigating whether Megos is engaging in real estate activities without a state real estate license.

Megos voluntarily surrendered his real estate license in 2006 following a complaint that he had forged an owner's name on a property sales contract and related documents.

In an interview last week with The Day, Megos said he does not need a real estate license, because he is an investor.

Consumer Protection department officials said a person does not need a real estate license to lease or sell buildings he or she owns, but does need a license to represent other owners for a fee in either sales or rental activities.

c.bessette@theday.com