As you may have heard, everyone's favorite man-child villain, Martin Shrkeli, is having a bit of legal trouble. He sounds confident that everything will blow over, but now Gawker is reporting that he's also a little behind on his taxes: Last month, the Internal Revenue Service filed a federal tax lien against Martin Shkreli, alleging […]
In point of fact, I do not know if Ms. Love is in compliance in the tax years of 2008 and 2010, however it stands to reason that if she were not, the lien filed on July 11th by the IRS would have included amounts due in those years. The IRS filed a tax lien against the […]
Godfather of tax gimmicks Herman Cain has a bit of tax trouble in his past, reports the Daily Beast. In 2006, while Herm was undergoing treatment for cancer, taxes due to the state of Georgia were not paid in a timely fashion and this resulted in the GOP hopeful being served with a tax lien. It took a couple of years to sort everything which was probably longer than necessary since it sounds like extensions were filed on time but the campaign is using this non-issue to remind everyone that we need to fix this mess that is controlled by computers and deadlines and things that drive the system:
The Republican’s campaign late Tuesday confirmed the lien, portraying the unpaid taxes as an oversight while Cain was undergoing cancer treatment and the state’s lien as an excessive response that shows the need for tax reform.
“The experience serves as an example of how broken our federal and state bureaucracies are with respect to the collection of revenue,” Cain campaign spokesman J.D. Gordon told The Beast. “The entire process is driven by automated letters generated in response to deadlines.”
Right. Because allowing citizens to file taxes whenever it’s convenient, using hand-written letters delivered by carrier pigeon would be a much better way to administer our tax system.
Cain’s Tax Delinquency [TDB]
If you’ve been poking around the web the last couple of days, you probably heard that R&B singer R. Kelly is in danger of getting thrown out of his house. It’s an unfortunate turn of events for RK who stopped paying his mortgage payments trying to strongarm JP Morgan into modifying his loan.
Unfortunately for R., it appears he also has blown off the IRS. Delinquent celebrity taxpayer scoop artist Robert Snell reports:
Music industry bad boy R. Kelly has more than foreclosure to worry about. Kelly, the controversial R&B star owes more than $837,000 in delinquent federal taxes, records show.
Snell reports that the IRS released a $1 million lien just last month against RK, so it’s unclear if this little oversight is the result of his JPM negotiating strategy or he’s still getting caught up on things.
R. Kelly believes he can fly — from tax bill [Tax Watchdog]
A true man of the people:
The Internal Revenue Service has filed a lien against Miami Springs Mayor Zavier Garcia for nearly $200,000 in unpaid taxes. The lien, filed June 8, means the IRS would get paid before Garcia and his wife if they attempt to sell their home or other real estate. Garcia said the IRS issued the liens after his new accountant detected errors in previous years’ tax returns. Garcia said he voluntarily brought the errors to the agency’s attention, and plans to pay the money as soon as his finances permit.
“I […] contacted my accountant who said they knew nothing about any lien. The lien has been paid. I do intend to find out how this lien happened without the knowledge of myself or my accountants. I hope none of this reflects negatively on mine and Ozzy’s moral character.” […] “Just because you’re paying someone doesn’t mean they’re doing the job correctly,” she wrote on Friday. Three days later she added, “You can’t rely on anyone but yourself. You have to be on top of your own business affairs. My fault … lesson learned.”
Ozzy Osbourne pays off U.S. tax debts [Reuters]
Commissioner Doug Shulman said in a statement today that the agency would make it easier for taxpayers to seek withdrawal of liens when they pay a tax debt or make arrangements to pay in installments for debts of less than $25,000. The agency also raised the dollar thresholds before liens are typically filed. “We are making fundamental changes to our lien system and other collection tools that will help taxpayers and give them a fresh start,” Shulman said in the statement. “These steps are good for people facing tough times, and they reflect a responsible approach for the tax system.” [Bloomberg]
C’mon, guys. No one is willing to scrape together $700k to help this girl out?
Robert Snell’s latest scoop has Ms Pressly owing California $57k in addition to the $95k lien he reported on last month. The IRS is asking for a bit more – $542,069 to be exact. Maybe a couple partners could team up on this? Seems like a small price to pay to be a hero to Joy Turner.
They aren’t exactly the U.S. Treasury and don’t foresee any populist outrage but Miami Heat Limited Partnership did Tim a fave and bought his 7,500 square foot manse for $1.985 million, according to Tax Watchdog Robert Snell:
The Miami Heat, one of the NBA’s hottest teams, bailed out former star Tim Hardaway, whose namesake son plays for the University of Michigan basketball team, by buying his Miami mansion and clearing up a $120,000 federal tax debt.
Hardaway, 44, ran into tax trouble in June despite being paid more than $46.6 million during his NBA career. The IRS filed a tax lien against his property and the bill listed his 7,542-square-foot mansion in suburban Miami.
For whatever reason, Tim is still crashing there but the Heat are trying to flip the pad for $2.5 mil, so if you’re in the market for 5bed/5.5bath with a full basketball court, make them an offer.
Olson has accused the agency of relying too heavily on an automated “one-size-fits-all approach.” She said the agency misguidedly files liens against people who have no money and no assets.
“Absent data that show liens make a meaningful contribution to revenue collection and especially in this economy, I find it unacceptable that the IRS continues to torment financially struggling taxpayers in this way,” Olson wrote in a news release accompanying the report.
Perhaps Olson has a point but then Robert Snell over at Tax Watchdog might not have a job and we’d hate to see that happen. The guy is like Raisin Bran™ on the celebrity tax deadbeat.
Robert Snell over at the Tax Watchdog has another tax delinquent scoop and for the first time – as far as we can remember – it involves a dashing adventurous type as opposed to your run-of-the-mill hip-hop artist or Nicolas Cage.
Jean-Michel Cousteau (whose beard has to be the inspiration for Steve Zissou, even though the film is a parody of the old man) owes the IRS and the State of California around $3 million from a slew of liens:
• The IRS filed a $109,768 lien against him July 20.
• The IRS filed a $480,061 lien June 22.
• The IRS filed a $600,076 lien June 15.
• The state of California filed a $60,198 lien against him April 29.
• The IRS filed a $212,748 lien Dec. 16, 2009.
• The IRS filed a $238,852 lien Oct. 15, 2009.
• The state of California filed a $41,860 lien Oct. 8, 2009.
• The IRS filed a $193,496 lien April 14, 2009.
• The IRS filed a $187,423 lien April 14, 2009.
• The IRS filed a $518,227 lien April 6, 2009.
• The IRS filed a $396,586 lien Feb. 1, 2008.
Jesus, man. No room for a CPA on your boats? We realize that some have weight issues which could cause a problem but just throw them in the water regularly and they’ll shed the extra pounds in no time.
Ocean explorer underwater on taxes [Tax Watchdog]
Where’s a Liberian warlord when you actually need one?
NC owes the Treasury around $60k which is really NBD seeing how that’s probably what she spends on antique torture tools to use on her assistants. In a weekend.
Plus, her boyfriend is the so-called “Donald Trump of Moscow,” which could mean a lot of things but it for sure means that dude is rich.
IRS slaps tax lien on model Naomi Campbell [Tax Watchdog]
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.
Presumably, because the IRS wouldn’t possibly think to question liens taken out against government employees:
Thanh Viet Jeremy Cao, 28, of Rancho Santa Margarita and Las Vegas, is accused of taking out 22 false liens ranging from $25 million to $300 million against employees of the Securities and Exchange Commission, the U.S. Attorney’s Office, the Secret Service and the Internal Revenue Service, as well as false liens against four federal judges, the Department of Justice announced Wednesday.
Young Mr Cao wasn’t just doing this out of spite. Oh my lord, no. He had a theory behind his request for $20 billion in refunds:
Cao, whose business was Phoenix Financial Management Group in Lake Forest, filed fraudulent forms with the IRS on behalf of six clients “that grossly overstate his customers income and withholding to get grossly inflated tax refund checks,” according to a complaint filed Tuesday in U.S. District Court in Los Angeles.
Cao used a theory called “redemption” or “commercial redemption” – which prosecutors called a “rejected tax defier theory.” This theory claims that the U.S. Treasury keeps millions in a secret treasury account for each taxpayer. The secret account can be used to pay a taxpayer’s debts and tax liabilities if a taxpayer sends the IRS and banks certain documents, the theory goes.
“Cao’s theory is complete fiction,” the complaint reads.
Jesus, man. Not even an original crackpot theory. Spend some of those 223 possible years working on developing something new.
Man accused of $20 billion tax fraud [OC Register]
California Man Indicted in Las Vegas for Filing False Liens Against Federal Employees & Filing False Tax Forms [DOJ]
Give It Up Tax Protesters, You’re Just Screwing Yourselves
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]
Oregon attorney Micaela Renee Dutson and her husband Tony Dutson were convicted of defrauding the U.S. Government of over $7 million but not before doing their damnedest to stave off the IRS and DOJ investigating them.
The Dutsons were a creative couple, selling “pure trust” packages to their clients who were told that their income would be tax free if it were placed in trust. They sold these products despite “several warning letters from the IRS, articles in the Oregonian newspaper warning the public against tax shelter scams, and a complstice Department on behalf of the IRS in an effort to stop them from selling their tax shelters.”
The IRS started auditing the Dutsons’ clients who, prior to engaging the dynamic tax duo, were seemingly compliant taxpayers. The IRS informed these clients that the “trusts” were actually illegal tax shelters and that they were being bamboozled.
This was, of course, unacceptable to the Mr and Mrs and they went on a serious offensive:
[T]he Dutsons began a campaign to obstruct the IRS’s audits and investigation, and to harass and intimidate the individual IRS employees who were auditing or investigating them. First, they created and presented dozens of fictitious financial instruments to the IRS purporting to pay off back taxes for themselves and a number of their clients.
Even though they knew the bogus instruments had no financial value and had never been accepted by a creditor, they continued to sell them to their clients with false promises they would pay off their tax liability. The Dutsons also advised clients to use them to pay off commercial debts, including mortgages and court-ordered obligations. Together, the Dutsons and their clients presented over $44 million worth of these bogus financial instruments over a four-and-a-half-year period.
To further obstruct the IRS, and harass and intimidate its employees, the Dutsons advised clients to file frivolous lawsuits against the IRS employees. The Dutsons charged their clients $3,500 each to prepare court documents and help their clients file them. They continued to advise clients to file these lawsuits — even after a federal court had dismissed the first of these suits as frivolous and without merit — without telling their clients about the dismissal.
After the Justice Department filed the complaint for a permanent injunction, and IRS special agents had notified the Dutsons in person that they were under criminal investigation, the Dutsons filed a $1 trillion lien in California against several IRS employees who had attempted to audit or investigate the Dutsons, as well as the DOJ attorneys who filed the complaint. A federal court later ruled that the lien was null, void and without legal basis, but one week later, the Dutsons prepared a $108 million lien for a client against John Snow, who was then Secretary of the Treasury.
The Dutson probably figured the jig was up and since $1 trillion is a nice round number the figured “why the hell not?!?” Back in the early ’00s a trillion was fantastical number (for the most part), not tossed willy-nilly like it is these days. The Dutsons could have filed the lien for $1 gabizillion and it would have made as much sense.
Oh and while they were at it, just file another one against the Secretary of the Treasury. If it was Tim Geithner, sure we can see that happening for a whole host of reasons but John Snow? Wasn’t he one of the most harmless cabinet members of the Bush Administration? If they would have filed the lien against Dick Cheney they could have garnered a little popular support at least.
UK watchdog launches Lehman audit probe [Reuters]
The UK’s Accountancy and Actuarial Discipline Board (AADB), investigative and disciplinary body for accountants, has started an investigation into the Ernst & Young’s final audit of Lehman Brothers’ UK operations for the year ending November 30, 2007.
E&Y, completely familiar with this drill, is sticking to their guns, “Ernst & Young’s audit opinion stated that Lehman’s financial statements for that year were fairly presented in accordance with the relevant accounting standards, and we remain of that view.”