Tag: Celebrities with Tax Trouble

Those IRS Shotguns Are Seeing Some Action

When Young Buck woke up yesterday morning, he probably wasn’t expecting IRS agents armed to the teeth barging in and taking everything in sight.

But according to TMZ, that’s exactly what happened.

According to Young’s rep, IRS agents rolled up to the platinum-selling rapper’s house in Nashville this morning to go on a repossession rampage over the alleged tax debt — seizing assets like recording equipment, jewelry, furniture, his platinum wall plaques … and even his kids’ PlayStation.

Allegedly YB owes $300k in back taxes which isn’t the largest sum but it’s sizable enough. When TMZ asked Mr Buck how he got himself into such a pickle he responded, “This IRS situation came about because I trusted accountants, lawyers, and managers to handle my business for me while I focused on making music. From now on, I am going to stay on top of my own business.”

Hopefully this doesn’t mean that the music doesn’t suffer like the business did. We can’t imagine such a huge blow to the culture.

Rather Than Admit that She Was Getting Tax Advice from Reggie Bush, Khloe Kardashian Blames Her Accountant

Because there doesn’t appear to be anything else going on today, we’ll be forced to tell you that Khloe Kardashian should now be at the top of your shit list for reasons none other than she is blaming her accountant for not paying her taxes.


TMZ reported yesterday that K-squared III owed California around $18.5k for ’07. Now the word is that she did pay but the accountant failed to remit the amount owed. Everything is cool though because, by the grace of God, Khloe has found a new accountant and everything should be cleared up shortly.

The only question that remains is, if she paid this twice, what the hell happened to the original $18k? Did the accountant just blow out of town with some Kardash cash? Did it somehow wind up in Reggie Bush’s pockets? Is there a spectacular Ponzi Scheme behind the whole thing that will result in the Kardashians being wiped out of popular culture altogether? God, we can only hope.

Khloe Kardashian — My Accountant Ate My Tax Lien [TMZ]

Chris Tucker Is Making a Run at Nicolas Cage-Level Tax Trouble

Maybe! CT owes the Treasury $11.5 million for back taxes, according to reports. This covers the 2001-2002, 2004-2006 tax years.

This sum nips on the heels of the $14 million that Nic Cage paid the Feds last year (and the $3.8 million he owes California for this year). In addition to the sum due to Shulman & Co., Tucker owed California $3.5 million last year, so, clearly, we’ve got ourselves a race here.

The difference is that NC has been working, which gives him a glimmer of hope of being in full compliance.


Tucker hasn’t been in a film since Rush Hour 3 in 2007 which, as some have pointed out, may be extremely good news for fans of that particular franchise.

Chris Tucker — 11 Million Tax Problems [TMZ]

Being a Former 007 Does Not Entitle Sean Connery to a ‘License to Not Pay Taxes’

Meant to get this out there on Friday but you know how it is. Anyhoo, everyone’s favorite Bond-turned-Darrell Hammond impersonated celebrity, Sir Sean Connery is having a bit of tax trouble in the country now known as the World Cup champions:

Legendary James Bond actor Sean Connery is being investigated for alleged tax fraud involving the sale of two large tracts of land in Spain.

Investigators say a property firm linked to the 79-year-old actor failed to pay taxes after he and his second wife sold land they owned on the outskirts of Malaga, Spain

The fact that the Connerys haven’t been arrested and are merely celebrities being investigated because some real estate companies involved in some shady dealings should be enough evidence to indicate that celebrity news is waning in the dog days of summer. Dr. Henry Jones wasn’t quote in the Daily Mail’s story but we’re hopeful that, if asked, it would go more or less go like this:

Add “Slapped with Tax Lien” to Lil Wayne’s Accomplishments While in Prison

Robert Snell over at Tax Watchdog tell us about Lil Wayne’s latest problem. This time it’s a $1.1 million tax lien courtesy of the IRS via Dade County Florida.

It’s probably NBD for LW, as he’s dealt with the Service in the past, paying a $977k lien back in August of ’08.

What is interesting is that this particular legal snag is on top of several other accomplishments that Wayne-o has stacked up while in prison.


Last month, he pleaded guilty to a laundry list of drug charges – possession of a narcotic drug for sale, misconduct involving weapons, possession of drug paraphernalia, possession of dangerous drugs – related to a stop that occurred outside Yuma, AZ in 2008.

He [pleaded guilty] over a live video feed from Rikers, and will most likely get 36 months of probation in return (the official sentencing is scheduled for June 30). For those keeping track at home, the plea bargain follows sports blogging, life-saving, prison-rule flouting, and rapping as things Wayne has accomplished while in jail.

And now delinquent taxes. Very impressive.

Lil Wayne, big debt [Tax Watchdog]
Famously Hardworking Rapper Pleads Guilty to Drug Charges While Already in Prison [Vulture]

Accounting News Roundup: Auditors ‘Portray Worrying Lack of Skepticism’; Are Tax Strategies Patentable?; Method Man Pleads Guilty, Cuts Check for NYC Tax Evasion | 06.29.10

FSA accuse auditors of failing to question management bias [Accountancy Age]
The Financial Services Authority has decided that it was about time it called out a few people, “Auditors have become yes men who don’t adequately question management bias according to concerns raised by the UK’s chief financial regulators. The Financial Services Authority (FSA) and the Financial Reporting Council today released a scathing discussion paper into the profession following concerns raised in the wake of the financial crisis. Among its concerns is that auditors ‘portrays a worrying lack of skepticism’ when scrutinising potential management bias.”

Not onlef=”http://www.accountancyage.com/accountancyage/news/2265630/fsa-audit-report-regulator”>FSA wants new enforcement powers including the ability to ” fine, censure or disqualify audit firms.” The FSA also wants to meet with auditors several times a year, rather than just once, as well as direct access to audit committees.

Alex to Become Hurricane as Swells Reach Gulf Spill [Bloomberg]
“Tropical Storm Alex, the first named system of the Atlantic hurricane season, strengthened today, forcing the evacuation of rigs in the Gulf of Mexico and pushing swells toward the worst U.S. oil spill.

The storm, packing maximum sustained winds of 70 miles (110 kilometers) per hour, was 460 miles southeast of Brownsville, Texas, before dawn today, moving north-northwest at 8 mph, the U.S. National Hurricane Center said in an advisory. The circulating winds were near reaching hurricane status of 74 mph.”

New York state may tax out-of-state hedge fund execs [Reuters]
Desperate idea of the day from the brain trust in Albany, “Recession-hit New York could raise an extra $50 million a year by collecting income taxes from people who work for hedge funds in the state but live elsewhere, according to a legislative plan to raise revenue…A spokesman for Democratic Assembly Speaker Sheldon Silver said by telephone on Monday that it means hedge fund managers would be treated the same way as other commuters.”


Aprill: The Impact of Bilski on Tax Strategy Patents [TaxProf Blog]
In non-PCAOB SCOTUS news, the decision in Bilski v. Kappos addressing “Whether a ‘process’ must be tied to a particular machine or apparatus, or transform a particular article into a different state or thing (‘machine-or-transformation’ test), to be eligible for patenting….” was examined by Ellen P. Aprill of Loyola-L.A. regarding the impact on tax strategy patents:

“Bilski is at best a mixed bag for those who think tax strategies should be patentable. It gives little help and does allow business method patents, albeit somewhat begrudgingly. It demonstrates that for those who believe that tax strategies should not be patented, legislation is needed.”

Method Man pleads guilty to NYC tax-evasion charge [AP]
“Hip-hop star Method Man pleaded guilty to a tax-evasion charge Monday, writing a check on the spot for the final $40,000 restitution payment after owing about $106,000.” What, no cash?

U.S. Court to Hear Janus Appeal In Securities Case [Reuters]
“The lawsuit, brought on behalf of those who bought Janus stock from mid-2000 through early September 2003, alleged that the prospectuses of several of Janus funds created the misleading impression that the company would adopt measures to curb market timing, when in fact secret arrangements with several hedge funds permitted such transactions, to the detriment of long-term investors.”

Wesley Snipes May Still Be Able to Get Back into the Vampire Game

If it wasn’t for WS, there would be no vampire craze. Sure the last Blade film was six years ago. And sure the first in the series was twelve years ago but it doesn’t mean the man still didn’t start the popularization of bloody-thirsty, sexy undead types.

However, this prison sentence thing hanging over his head has probably made him a bit of a liability. But thanks to some crafty lawyering, he’s been able to stave off the joint long enough to catch a bit of luck.


Since Ponzi-schemer-to-the-stars Kenneth Starr has been outed as a complete shame (not to mention a complete wuss) Wes can get back to the business of making truckloads of cash in this bloodsucking phenomenon:

A federal appeals panel is considering whether the arrest of actor Wesley Snipes’ former financial adviser could pave the way for a new trial on tax evasion charges.

Snipes was convicted and sentenced to three years in prison in 2008, but his attorneys asked the 11th U.S. Circuit Court of Appeals in Atlanta to allow a new request to dismiss the movie star’s conviction or grant him a new trial.

The motion centers on the arrest of Kenneth Starr, the one-time financial adviser to Snipes and other celebrities.
He was a key witness in Snipes’ 2008 trial but was charged in May with securities fraud worth $59 million.

Federal panel considers Wesley Snipes’ appeal [AP]

Would the IRS Take the Heisman Trophy as Payment for Back Taxes?

Maybe! But we’ll get back to that in a minute.

There was a fair amount schadenfreude aimed at the University of Southern California when the school was slapped with sanctions a couple weeks back and at Reggie Bush for his role in the whole sitch.

How Bush really feels about it seems to be a mystery since he’s been quoted saying, “[This] is the closest thing to death without dying” but also a less passionate response, “Whatever happens, happens.”

Borderline schizophrenia aside, Fox News reports that Reg might have to pay some back taxes on the estimated $300,000 in luxury gifts he allegedly received:

“If the entire $300,000 is determined to be taxable,” Los Angeles-based CPA Mark Greenberg said, “about 50 percent of that would go to the IRS and Franchise Tax Board. And with penalties and interest, it could go up to 60 percent since it’s going back a few years.”

Greenberg estimates that Bush, now the star running back for the New Orleans Saints, “ultimately will wind up paying about $150,000,” but “it could be up to $200,000” if his financial team can’t get the penalties and interest waived.

We’re sure Bush would never have to give up his trophy a la the Juice since A) he didn’t kill anyone and B) his sponsors are still firmly in his corner, so the money shouldn’t be a problem. That being said, having the IRS snooping around your financial situation is about annoying as a Keeping Up with the Kardashians marathon.

Accounting News Roundup: UBS Deal Back on Track; Allen Stanford’s Circus Causes Problems for Co-Defendants; Zynga Lands $147 Million | 06.15.10

Swiss Parliament Backs UBS Pact [WSJ]
After telling U.S. and IRS to drop dead last week, the lower House of Swiss Parliament has approved the deal to turn over 4,450 names as part of UBS’ settlement involving their assistance to taxpayers in the U.S. evade their obligations through offshore accounts.

There’s one small problem remaining – the lower house wants to put the agreement to a popular referendum while the upper house in parliament is opposed to the idea. The two have until Friday to reconcile their differences, otherwise another vote will be necessary to settle the referendum issue.

The problem with the referendum is that it could take months for happen and it could cause the Swiss to miss the August deadline that it agreed to. This could lead to fresh charges against UBS and further extending a story that pretty much everyone has grown tired of.


Stanford’s Co-Defendants Try to Flee the ‘Circus’ [DealBook]
Stanford’s Chief Investment Officer, Chief Accounting Officer and Controller are all attempting to sever themselves from Al’s proceedings because he’s an absolute drama whore.

Former CIO Laura Pendergest-Holt’s motion to have her trial severed describes RAS’ conduct as ‘egregious and circus-like conduct,’ using the term “circus” at least eight times.

So while a circus is infinitely fun for the rest of us, it doesn’t really do co-conspirators any good when they are trying to get a fair trial.

Dealing With a Toxic Resumé [FINS]
How can you move past a job with a tax company like Stanford, Countrywide, Bear Stearns et al.? You might just want to GIVE UP (and that could be advisable if you were a perp) but there are some things you can do to wash away that taint on your resumé.

For starters don’t bad mouth the old company, even though they probably deserve it. Secondly, you might attach an addendum to your resumé in order to explain the whole sitch and you can always turn the situation into a positive by explaining how you’ve learned from working at such a lousy company.

Keep your chin up, you’ll be back to being a white collar working stiff in no time.

Duke boy dodges tax hazard [Tax Watchdog]
John Schneider, aka Bo Duke, and his wife owe California about $28,000 in back taxes. Turns out his old accountant left him ‘high and dry’ so he’s working it out with Arnie.

Zynga Receives $147 Million Investment From Japan’s Softbank [Bloomberg BusinessWeek]
Memo to Farmville Haters: it’s here to stay and there will be more to come.

No Mr. Wendt, Having Played an Accountant on TV Won’t Help Your Tax Problem

When who played one of the most treasured accountants in television history can’t manage to use his fictional expertise to get themselves out of a tax jam, you have to start asking yourself – what chance do any other future thespians that play accountants have?


Robert Snell over at Tax Watchdog reports that George Wendt owes the state of California $30,000 in taxes, citing public records.

Robert did his usual diligence asking for the celebrity’s point of view and he managed to get Norm’s agent, Arthur Toretzky who was less than thrilled with the inquiry. Here’s a portion of his response to Robert’s email:

Do you reporters get a charge out of writing this stuff? George is one of the nicest guys in the world and you want to embarrass him. I just don’t get it. How this wold [sic] has changed. Good luck with getting whatever information you need, and I hope this at least puts you in contention for a Pulitzer.

Not sure if Robert responded to Artie but on Tax Watchdog it’s pretty clear why this is important:

Every year, about $345 billion in federal taxes are either late or unpaid, according to the IRS, ripping open holes in budgets and shortchanging schools and public safety. That forces taxpayers to cough up more than their fair share, tax experts say.

Unless you don’t think that’s a big deal. Besides, if he had Ted Danson’s business manager maybe this wouldn’t have happened.

Nicolas Cage Must Not Have Heard About the Fiscal Crisis in California

We really thought we had heard the last of Nicolas Cage and his tax problems. The man has eight films at various points in production including the next editions of both the National Treasure and Ghost Rider franchises.

With that kind of cinematic lineup, you’d think the State of California would give him the thumbs up and say, “Oh, it’s cool Nic. Just cut us a check as soon as you have the cash. NO worries.”


Then we remembered that this is California, home to the budget projection experts that misfired on their tax revenues by $3 billion, so you bet your repossessed-mansion ass they’ll take that $3.8 mil.

National Treasure’ actor Nicolas Cage owes another $3.8 million [Tax Watchdog]