Martin Shkreli Not Exactly On Top of His Taxes
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 […]
Let’s Give Courtney Love Credit for Being Tax Compliant in 2008 and 2010, You Guys
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 […]
Form Letters Generated by Pesky Technology Spurred by BS Deadlines Are to Blame for Herman Cain’s Late Taxes: Spokesman
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]
Is It Impossible for a Dancing With the Stars Champion to Get A Decent CPA?
I only ask because Kelly Monaco could use one. Robert Snell reports that she owes about $68k to Feds which is odd considering she beat the likes of Evander Holyfield, J. Peterman, and Joey from New Kids on the Block. Can’t someone help the girl out? And not with the tango. [TW]
When It Rains, It Pours: R. Kelly Hit with Tax Lien
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]
Florida Mayor Relates to Constiuents By Getting Slapped with a Tax Lien
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.
Osbournes Pay Off Tax Lien, May Be on the Hunt for a New Accountant
It sounds like the Osbournes need to find themselves a new Mort Mort Feingold.
“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]
IRS Eases Up on the Tax Liens for the Little People; Celebrities Not So Lucky
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]
Doesn’t Anyone Want to Help Jaime Pressly with Her Tax Problem?
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.
The Miami Heat Bail Out Tim Hardaway
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.
Taxpayer Advocate Nina Olson Would Like the IRS to Quit Slapping Liens on People
Presumably this means celebrities too! That is, until the IRS can show that it’s actually an effective means of collection and not so ‘hard core.’
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.
IRS’s ‘hard-core’ collection tactics needlessly harm taxpayers, report says [WaPo]
Jacques Cousteau’s Son Owes IRS $3 Million
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]
The IRS Is Unlikely to Take Blood Diamonds as Payment for Naomi Campbell’s Tax Lien
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]
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.
Breaking: Requesting Huge Tax Refunds Based on Crackpot Theories Still Being Attempted
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]
Earlier:
Give It Up Tax Protesters, You’re Just Screwing Yourselves
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]
Filing a Bogus $1 Trillion Lien Against IRS Employees Proved To Be an Ineffective Intimidation Technique
Who knew!?
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 compl stice 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.
Oregon Attorney Convicted of Tax Fraud After Filing $1 Trillion Lien Against IRS [Web CPA via TaxProf]
Accounting News Roundup: UK Launches Probe of E&Y’s Final Lehman Audit; Revolving Door at SEC Scrutinized; Swiss Upper House Rejects Referendum | 06.16.10
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.”
SEC ‘Revolving Door’ Under Review [WSJ]
Currently, the SEC does not have a cooling off period for former staffers that take a position with a private firm. Former staffers (i.e. lower-level employees) need only to provide a written letter disclosing the fact that they will be representing their new employer in an investigation.
The Journal reports that Senator Charles Grassley (R-IA) announced on Tuesday that an investigation into the practice had recently been launched by the Inspector General David Kotz, “[W]e are currently conducting an investigation of allegations very recently brought to our attention that a prominent law firm’s significant ties with the SEC, specifically, the prevalence of SEC attorneys leaving the agency to join this particular law firm, led to the SEC’s failure to take appropriate actions in a matter involving the law firm,” Mr Kotz said.
The Journal reports that law firm in question “could not be determined.”
There have been several instances of quick transitions of former Commission staffers to new representing their new firms, including the most recent example of an attorney leaving the Division of Trading and Markets for the Chicago-based high frequency trading firm Getco, LLC and an accountant from the enforcement division who represented his new employer in a nonpublic investigation.
IRS hatches new assault on ‘Survivor’ [Tax Watchdog]
Thanks reality TV gods, Richard Hatch is still in our lives. He still owes $1.7 million in taxes from 2000 and 2001.
The CAE’s real challenge – ethics, courage, and complacency [IIA/Marks on Governance]
Norman Marks responds to a commenter that believes that a Chief Audit Executive need not focus on auditing and communicating those results and risks but instead “be conscious of and responsive to management expectations,” and basically substantiate that internal audit isn’t a giant waste of money.
Mr Marks questions this notion in its entirety, “It’s fine to supplement essential assurance activities with the tangible value-adding programs…But, the assurance work has to be covered or (in my opinion) internal audit is failing to do its job. When that is a conscious decision, I have to question the ethics – and the courage – of the individuals involved.”
Swiss Upper House Rejects Call for Referendum on UBS Pact [WSJ]
The upper house in Swiss Parliament would like their counterparts in the lower house to leave their popular referendum idea wherever they found it. Presumably everyone understands that super secret Swiss banking as the world knows it is over and lower house is a little slow to catch on. They’re supposedly debating the referendum circa now.
Class Action Complaint against Amedisys uses Sarbanes-Oxley Act Corporate Governance Provisions to Battle Alleged Corporate Malfeasance [White Collar Fraud]
Amedisys got caught red-handed by the Wall St. Journal abusing the Medicare system and Sam Antar hopes that this is a sign of things to come:
The SEC rules under Sarbanes-Oxley for public company codes of ethics broadly define corporate malfeasance by senior financial officers, requires such companies to promptly report any misconduct, prohibits companies from ignoring any misconduct, and makes it relatively easy for investors to sue for misconduct.
…
Hopefully, more lawsuits will cite code of ethics violations by public company senior financial officers in the future.
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.
Dylan McKay Won’t Be Able to Save Brenda Walsh From Her Tax Problem
Yesterday we may shared with you the unfortunate news about the dude from Reading Rainbow having a little tax problem which may have taken you back to the days of still whining about the lack of Cocoa Puffs in your house.
This time around celebrity tax problems take a little bit of a different path down memory lane (and a different theme song to get stuck in your head) to those days where your hormones were in control and the feeling of awkwardness was constant. For those of you too young to be familiar or give a rat’s ass about 90210, we’ll kindly enlighten you by stating unequivocally that Gossip Girl WOULD NOT EXIST without 90210.
Yes, Brenda Walsh, er, Shannen Doherty seems to have run across some tax trouble (just about $250k, NBD really) and as is our wont, we’ll present some possible solutions.
A) Another run at DWTS (nobody really gets it the first time).
B) 90210 movie – May we suggest that old wardrobe and hair styles be incorporated and that they should definitely go for the R rating? (seriously, how many times do you wish Dylan would have said “Fuck you Brandon, you momma’s boy” right in his smug face?)
C) Call ex-boyfriend Rick Salomon and see if he’s interested in making another movie.
D) Serious suggestions welcome.
‘Dancing’ star trips over tax bills [Tax Watchdog]
The Guy From Reading Rainbow Has a Small Tax Problem
A refresher:
If that doesn’t mean anything to you, he’s also the dude with the bizarro shades from Star Trek, The Next Generation.
But back to the RR for a sec – many of you would be an illiterate waste of space if it wasn’t for LeVar Burton, so the least you could do is pitch in so the man can pay the $34,000 he owes California. Or at least ask your parents to help out. It’s the least they can do since LB probably bought them some much-needed private time back in the day while you were zoning out on the shower in the toilet.
Tax resistance futile for Star Trek actor [Tax Watchdog]
See also (if you want the RR theme song stuck in your head):
LeVar Burton Owes $34,000 in State Taxes… “But Don’t Take My Word For It” [Tax Docket]
Who Wants to Buy John Daly’s House (Sans Kegerator)?
If you feel like nothing in life is ever certain, know this – John Daly will always be a weight fluctuating, chain-smoking, boozehound. And every once in awhile, he’ll have some serious money trouble or just go completely broke.
This is usually followed up with a major win which is then followed up by a total blow-up at the next tournament that may or may not involve Big John ending up passed out pantless on the 18th green in the middle of the night.
The guy has managed to make $9 million throughout his career yet still owes the IRS over a $1 million in back taxes for ’07 and ’08, according to a lien filed with filed by the Service with Shelby County.
His house in Memphis is apparently for sale, for just a smidge under $700k. So if you’re in the market, help the guy out.
Judging by the pics, you’ll have to schlep in your own kegerator and you’ll likely have to replace the carpet due to the ubiquitous cigarette burns but it still looks like a pretty nice pad.
IRS grips, rips golfer John Daly [Tax Watchdog]
Wednesday Addams’ $180,000 Tax Trouble
Go figure, Christina Ricci has been hit with an IRS lien to the tune of $179,568.30 for unpaid 2008 taxes. Though the lien news seems to have taken her quite by surprise, Ricci’s rep told TMZ that she is taking “immediate action to address it in a responsible manner.”
That’s funny, I thought a responsible manner would have meant paying the IRS $179,568.30 before April 15th, 2009 when it was due but maybe that’s just me.
Oddly enough, if you’ve ever been hit with an IRS lien (hello, Nic Cage) you know that the Service doesn’t just one day decide to slap a lien on you without first attempting to give you a hint that the proverbial shit is preparing to hit the fan. Generally this comes in the form of correspondence (lots of it) indicating that there is an issue.
Helpful bunch that they are, the IRS will almost always work with tax delinquents as long as said delinquents return their letters and get in touch to say “Hey, sorry, totally forgot to give you that $180,000 that I owe you.” In the case of Christina Ricci, we’re pretty sure her IRS letters must have gotten lost in the fan mail and creepy stalker packages. Yeah, that must it.
Would Sarah Palin Consider Helping Pamela Anderson with Her Tax Problem?
When celebrities have tax trouble, the majority of reporting out there feels like schadenfreude. Being of the more helpful mindset (especially when it comes to America’s beloved rich [or not so much] and famous) we try to provide solutions for those celebs down on their luck.
In celeb-tax-trouble du jour, Pam Anderson has been named to the California’s Franchise Tax Board Top 250 Tax Delinquents. She owes the people of California nearly $500k.
Someone equally as famous but without the financial difficulties is former VP candidate Sarah Palin.
We’re not suggesting that SP spread the wealth around but just to help out a real American like herself. What’s $500k between two women that share the uncanny ability to seduce the American psyche? They’re a natural team – both have rabid fans; Pam is currently on a reality show, Sarah’s is in the works. Sarah Palin hates taxes; if Pam didn’t before, she certainly does now.
Sure, SP kills animals while Pam stumps for them but those a small issue like digesting animal flesh or wearing fur can surely be set aside for the good of the country. Plus, it would make for a great Sarah stump speech come 2012.
Pamela Anderson Owes $493,000 in Back Taxes [AP]
See also:
California’s Top 250 Tax Deadbeats [TaxProf]
What Do Pamela Anderson And Tim Geithner Have In Common? [DB]
It’s About Time a Race Car Driver with a Drug Problem Got in Trouble with IRS
Among the celebrity/athlete tax delinquents we get a decent variety – hip–hop artists, topless girl magnates/douches of the decade, juiced-up baseball players, washed-up actors, people stupid enough to have their picture taken in a Nazi visor and doing the “sieg heil.” It’s a potpourri.
Well, today we’re happy (not literally happy, tax delinquency is not a laughing matter) to report that tax troubles have now found their way into new area of the celebrity culture: race car drivers. And not just any race car driver, one that is rumored to have used meth! Lots of it!
We’re not too familiar with Jeremy Mayfield’s problems but after a quick glance at one article we’ve learned that A) he’s not crazy about NASCAR leadership B) dude has done a fair amount of crank in his day C) he’s not a fan of his “whore” stepmom who, he says, killed his Dad.
Between the work trouble, drug trouble and family trouble J May’s brain has to be mush; of course he’s going to forget to pay $300,000 in taxes. This is no different than the Snoop Dogg tax situation. Sure the drugs are different but the principle is the same. The guy just needs a solid CPA to take care of these things for him, preferably one that isn’t easily sketched out and can handle paranoid junkie types with money to throw around (assuming there’s money left).
Fans Help Thomas Hearns Pay Tax Debt By Purchasing Decades-Old, Sweat-Encrusted Items
Thomas Hearns has no doubt seen the embarrassment that some of his fellow celebrity/athletes have suffered as the result of their tax scofflaw ways and decided that he would only suffer minor embarrassment. Hearns made over $40 million during his career but managed to owe back taxes of $448k, not to mention over $500k in overdue mortgage payments.
Rather than drag the proceedings on further, Hearns decided to get proactive on this little obligation and decided to hold an auction of memorabilia and other personal items to satisfy his debt. And since the bulk of Hearns’ career existed when boxing was still somewhat legitimate, these particular items probably still had some semblance of value to collectors/hoarders of random shit.
Items sold included a robe from a bout with Sugar Ray Leonard for $1,100, to trunks, gloves, headgear, ATVs, boat, ’57 Chevy. Pretty much anything that touched Hearns body that had ever been stained by sweat, blood, and any other bodily secretions (and those of his opponents) were auctioned off to satisfy the debt.
Hearns admitted to the Detroit Free Press that this all seems a little ridiculous considering the money he made, “I made a lot of money in boxing. But as a man who had a large family, people looked at you as their savior. You tried to help them by giving. It doesn’t stop. I’m the big brother — I give and I give.”
Ahhh, yes. The free-loading relatives. The types that don’t pay you back for that grip you loaned them for a [insert luxury vehicle of choice]. Should have known. Luckily, true fans of the boxer are more than eager to own funky jock straps to help out the champ.
Thomas Hearns, at auction, rolls with punches [Detroit Free Press]
Boxing legend Thomas Hearns risks losing home [Tax Watchdog]
A Tax Lien Is a Much More Manageable Problem Than Say, Apologizing to Your Oscar Winning Wife
Since Jesse James’ tax lien is relatively small — $3,918 — you can probably chalk this up to a mistake. However, since the taxes are related to 2007, could it be that it was an oversight? A mistake? Poor judgment?
Poor judgment akin to say, inviting a tattoo model/stripper/rumored white supremacist into your bike shop to cheat on your wife? Is that sort of the same thing?
Tax debt adds to sex scandal for Sandra Bullock beau [Tax Watchdog]
Ludacris Should Be Giving Ving Rhames Tax Advice
In today’s celebrity tax scofflaw du jour, we learn that Ving “Why do people always have to bring up that scene in Pulp Fiction” Rhames owes the IRS over $800k from two liens, both filed by the IRS in Los Angeles.
Rhames has had trubs in the past, having liens filed against him last May as well.
It seems to that California, being in the fiscal trouble that’s it in, really needs to call on its other celebrity residents to hold some sort of Haiti-esque fundraiser for some of their fellow celebs.
Sure, it might not fix all the state’s budget problems but at least we could admire our celebrities for being financially responsible pillars of the community rather than pillars of the community when there’s an international crisis. Plus, maybe California wouldn’t have to fire more teachers.
In semi-related news, you will never, ever, EVER hear about Ludacris owing the IRS a damn thing. Not now, not ever.
“I pay more in taxes than most people would ever imagine. I guarantee you, I’m looking dead in the camera, you will never hear about Ludacris owing the damn IRS no damn money.”
Okay, financial celebrities f-ups, get on the horn and find out what the great financial mind-cum-rapper/actor of Ludacris has in store for you. Things haven’t worked out so far, so it can’t hurt to see what the man has to say.
Ving Rhames far from OK with Uncle Sam [Tax Watchdog]
Suge Knight Really Needs a 2Pac Comeback to Get Him Out of This Tax Lien
Suge Knight may be the heir apparent to Nicolas Cage for the King of celebrity tax trouble. There have been several minor liens thrown in here and there and Nas’ $3+ million tax lien was certainly impressive but Suge’s looks like a solid leader for the crown right now.
We should note that for the purposes of celebrity tax issues, Joe Francis does not qualify since he’s technically a “douche” and not a “celebrity”. Also, since the $33 million-ish lien just up and disappeared (we’re assuming that Lucifer is somehow involved) he’s off the hook.
Anyhoo, so being tardy on taxes seems to be a common occurrence but Suge seems to be going for the tardiest of the tardy. He has managed to avoid paying a tax lien, originally filed in 2003, for his 1996 tax return. TMZ is reporting that the lien was re-filed in January and that he owes $6,578,696.31.
TMZ is also reporting that in child support papers filed by Suge’s baby mama, it was revealed that his net income is only $1,207 so paying this lien is going to need some kind of resurrected 2Pac comeback somethingorother.
The blog Baller Status also reports that last month “several personal items he had tucked away in storage were auctioned off to the highest bidder after he failed to pay the storage fees. Belongings such as furniture, TVs, and even a large photo of himself with the late Tupac Shakur were sold.”
So whenever you’re feeling a little down about your own dire personal financial situation or think about your crappy pay, just remember that you could be Suge Knight.
Nas Slowly Approaching Nicolas Cage Tax Trouble Levels
Actually he has quite a ways to go to get to the nearly $14 million that NC agreed to pay the IRS and isn’t even close to the $33 million that “Douche of the Decade” Joe Francis owed (that has now been dropped we should add) but a $3 million tax lien is nothing to sneeze at.
On the other tax deadbeat hand, Nas easily eclipsed other recent tax scofflaws including Snoop Dogg’s lien of $600k, Jose Canseco’s $320k and Eve’s $357k. But actually, it’s not really that hard considering, “sources say Nas doesn’t have a clue he’s going under financially…He was at Sundance recently and raked in $50,000 for a performance, which, we’re told, he blew before he blew out of Sundance.”
Presumably the IRS won’t let it get too much further out of hand. After planes and bulldozers, we’re thinking they’ll stay on the offensive with regards to resistance.
Reality to Nas — ‘Memba Me? [TMZ]
Recent Celebrity Tax Scofflaws:
Tax Deadbeat of the Day: Jose Canseco
Why Snoop Dogg’s Latest Tax Problem Isn’t a Surprise
The IRS Wants a Piece of Eve
Joe Francis Continues to Get Hassled by the IRS
Nicolas Cage’s Catastrophic Financial Situation May be Coming to End
Tax Deadbeat of the Day: Jose Canseco
Try to make sense of this: J Can made $45 million playing baseball, “wrote” two books that essentially ruined the juicing party in MLB, has been on countless reality shows, tried his hand at mixed martial arts and he can’t scrape together $320,000 for the IRS and the state of California?
Okay, can’t undo what’s done and unfortunately, Canseco has limited options. He can’t really call McGwire, Bonds, A-Rod, Jason Giambi for a loan. That’s just awkward, plus he doesn’t strike us as the type of guy who would pay you back if he could.
If the MMA doesn’t work out, then we’re thinking he’s still got plenty of options:
• Working outside an Abercrombie & Fitch
• Bouncer on a porn movie set
• Jersey Shore cameos
Other possibilities? Sure they’d have to garnish his wages but dude needs to get the ball rolling.
Slugger Jose Canseco strikes out with tax agencies [Tax Watchdog]
Why Snoop Dogg’s Latest Tax Problem Isn’t a Surprise
Seriously. Does anyone think that Snoop Dogg forgetting about his taxes is that much of a stretch? He’s got to have the money; the Starsky & Hutch royalties alone should be able to settle the $598-odd thousand lien that the IRS slapped on him.
So the only plausible explanation is that he forget to pay the taxes. He’s got the regular day-to-day celebrity issue that Nicolas Cage or Eve may have but come on people. His daily ritual consists of choosing between White Widow, Hollands Hope or Northern Lights (or whatever strain he wants, really); has it occurred to anyone that it may have slipped his mind?
D-O-Double G got hit with a lien last year too so isn’t this the kind of tax compliance we’ve come to expect anyway? It’s basically like you scrounging around for your keys every morning. It’s the routine.
Yes, we suppose that he could hire a CPA to take care of his business affairs but we’re guessing that may have escaped the mental to-do list too. NBD, really. See you next year Snoop.
Today in IRS Resistance: Ohio Man Bulldozes His Own House
What’s the saying about trends? We can’t remember it but after the suicide attack on the IRS last week, we now bring you a less violent but equally ineffective middle finger to the IRS.
Terry Hoskins, of Moscow, Ohio had IRS liens slapped on his carpeting store and other properties. Apparently he used his personal residence as collateral on the business and these other properties, leading his bank to foreclose on his home. Hoskins wasn’t okay with that:
Whether Terry the Bulldozer was looking to get a Facebook following out of this, isn’t entirely clear. But we will give the guy credit; even if he did this to himself by putting up his personal residence for some bad business deals, he’s got pretty creative for the sake of making a point.
“I made a bad business decision. Fuck you IRS! Up yours, RiverHills Bank! You think I’m not serious? I will rent heavy machinery to prove my point. I will make my loved ones temporarily homeless. I will go on a local NBC affiliate to talk about it. How do you like me now?”
Unfortunately, the timing couldn’t be worse. If that attention whore Joe Stack hadn’t gone on his little flight, Terry could be enjoying Joe the Plumber-esque fame right now. Next time, Terry.
The IRS Wants a Piece of Eve
Don’t we all. But seriously, what the hell is wrong with celebrities that can’t manage to pay their taxes? CPAs aren’t that expensive.
Eve isn’t in Nicolas Cage tax trouble with her little bill to the IRS but then again, who is?
The hip-hop star/actress/Who Wants to be a Millionaire contestant (charity, we hope?) owes around $357k from four different liens, two filed by the IRS and two by the state of California from ’08 and ’09.
So let’s brainstorm to help get this girl out of trouble. Is Barbershop 3 in the works? The Glee thing seems to have gone okay but do TV gigs pay enough? She’s not making Seinfeld money after all. Is WWTBAM still a series? Maybe they’re running it in the old Soviet Bloc and she can get on it there…
Hip-hop star Eve hops over tax bill [Tax Watchdog]
Arnold is Probably Thinking That This Is One of Those Situations Where a Cyborg from the Future Would Have Come in Handy
It just doesn’t seem possible that his Govinatorness would have a tax lien slapped on him because A) he’s married to a Kennedy and B) his annual Kindergarten Cop royalties alone should be enough to cover $79k.
Despite those two advantages, the IRS did file a lien in May for $79,064 that relates to 2004 and 2005, according to TMZ.
The claim by the Governor’s minions is about what you would expect them to come up with: a ‘paperwork snafu.’ In all fairness, the code section cited on the lien is 6721 which, as Tax Girl notes, is informational in nature:
Section 6721 deals with information returns, not taxes owed…Information returns would include such ordinary forms W-2, W-3, 1099, 1096, etc. If that’s the case, it could likely be related to household employee payroll taxes (household employees would include workers such as housekeepers and nannies). However, Schwarzenegger’s office is strongly hinting at the fact that it’s more removed than that – but then, they are politicians.
The other possibility that’s being floated around is that Ahnuld is “listed as a ‘responsible person’ by a business in which he is involved, possibly with a group of partners, and that the IRS might file liens against all of the business’s designated agents,” and thus, “might explain why Schwarzenegger may not have been aware a lien had been filed.”
So, as usual, no one really knows anything for sure and nobody is talking. The man has been a failed state to run people, he can’t be expected to be on top of everything.
Schwarzenegger’s Office Blames $79,000 Tax Lien on ‘Paperwork’ Snafu [Mercury News]
The Governator Blames Tax Lien On “Snafu” [Tax Girl]
See also: IRS Files $79k Tax Lien Against Gov. Schwarzenegger [TaxProf Blog]
Joe Francis to Declare Bankruptcy, Owes IRS $34 Million
Tragic news from the world of wholesome entertainment as Joe “Back to the business at hand of slapping women” Francis is allegedly going to declare bankruptcy tomorrow after receiving liens for nearly $34 mil.
Not such a good thing for Francis since he just hammered out a plea deal two months ago.
According to Tax Girl, that plea agreement, “requires him to resolve his outstanding tax issues. I mean, it is a resolution – but I’m guessing not so much what IRS had in mind.”
They certainly aren’t apologizing for this one.
Girls Gone Wild Founder To File Bankruptcy, Blames IRS [Tax Girl]
Other GC Coverage of Joe Francis:
SHOCKER: Joe Francis May Have Attracted Slimy Business People
Joe Francis Plans to Argue That Anything Related to Topless Girls is Deductible
Hungarian Actresses Are Not Immune from Tax Troubles
The last thing you want if you’re a celebrity is money troubles. Whether you’re punching your shiesty accountant, simply spacing your tax liabilites, or just spending too much, it’s downright embarrassing. You’re a celebrity, for crissakes!
What’s worse if you’ve got money trubs because you lost scratch to Bernie Madoff. Sure if you’re Kevin Bacon, you can get by on the Footloose royalties but what about people who seem to be famous for no discernible reason? Unless being a “Hungarian actress” and “socialite” qualify as reasons.
Tax Girl has the details on Zsa Zsa Gabor’s trubs because of Berns:
The 92 year old actress has been liened by the Internal Revenue Service for $118,000 for the years 2001 and 2002; the lien has been filed against one of Gabor’s mansions in California. Gabor’s lawyer, Chris Fields, says that the tax bill is part of the fallout from the Madoff scheme.
Luckily for Zsa Zsa, her ninth husband, Frederic von Anhalt, whored out his own name: “Anhalt has reportedly received millions of dollars by selling the Anhalt name by adopting, along with Zsa Zsa, several men.” There’s no cause for concern, as he’ll be picking up the bill. Celebrity embarrassment has been avoided!
Why FvA gets paid to adopt his own wife and a bunch of dudes isn’t entirely clear. Annnnnd in case that’s not weird enough for you, TG points out that Fred also claimed to be the father of Anna Nicole Smith’s baby. So now an asston of pharmaceuticals are likely relevant in some way. The awesomeness has reached a new level.
It’s a Tax Lien, Dahling [Tax Girl]