Fresh off Rihanna's massive settlement from her former accountant Peter Gounis and his firm Berdon LLP, we have another story of a poor celebrity led wrong by his trust financial advisor. Colin buried it in ANR but here you go: McKnight has filed a lawsuit against Vernon Brown and Company, claiming Brown ruined his life […]
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 […]
Actually, Judge Madeline Cox Arleo knows that Ms. Hill is a person with "substantial assets" so she's not sure why it has taken so long to come up with the $504k that she owes in criminal tax liability. Nevertheless, Judge Arleo is giving her two weeks to cough it up and Hill's attorney, Nathan Hochman […]
When was the last time we heard a celebrity in tax trouble complain that the only reason they're being targeted by the IRS is because they are a celebrity? The defense of Lauryn Hill's failure to file for three years is really no different, except in this case Hill's attorney (who happens to be a […]
Last week, we learned that musician Lauryn Hill was a little behind on her taxes. Not unusual for a celebrity, many of whom are artists first and taxpaying citizens of the United States second. However, on her Tumblr, Ms. Hill set the record straight that her noncompliance was not willful and malicious, but rather 100% […]
Let’s be honest though, “decent” is probably pushing it. A “below average” accountant could have slapped some numbers on a 1040 and hit the button.
Ja got twenty-eight months for failing to file income tax returns and claims that “[I]n no way attempted to deceive the government or do anything illegal,” he said. “I didn’t know how to deal with these finances, and I didn’t have people to guide me, so I made mistakes.” Anyone near Oneida that’s looking for a new client should feel free to drop by the correctional facility to make a pitch. [HP]
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]
Academy-Award winning actress Marlee Matlin admits to People mag that she owes $50,000 to the IRS and isn’t at all embarrassed by this fact. ”I’m paying it back. I’m not shying away from it and I’m certainly not ashamed of it,” Matlin told the magazine. “It doesn’t mean I’m a bad person. It’s reality. It’s the reality that a lot of people in America are facing.” You tell ’em, girl!
The Celebrity Apprentice “star” (we use that term loosely, not being a huge fan of D-lister reality shows featuring hot messes such as Gary Busey and Lil’ Jon) tells People celebrity isn’t all it’s cracked up to be and, in fact, it’s her four kids and modest middle class life in the ‘burbs that is to blame. “Living modestly in a suburban neighborhood while trying to support four children through private school is not extravagant or living large,” Matlin said. “My husband is a Los Angeles area police officer and between the two of us we have always made ends meet in the past — and we will in this circumstance as well.”
To adjust to their new life as (probably accidental) tax protesters, the Matlin clan plans to make some important financial adjustments, like putting their poor children into public school. “At the end of the day, it’s about the best interests of the children,” she said. “Transitioning out of a private school environment will certainly relieve some of the financial pressures but hopefully this will not compromise the kids.”
Yes, hopefully it will not. Let the record reflect AG is a product of public school and we all know how horribly I turned out; someone pray for those kids.
Despite these hardships, Matlin seems upbeat and not at all worried about what this means for her reputation (let’s hope the IRS didn’t put her in the non-TIGTA-friendly “Tax Terrorist” category). “I’m not broke. Like everybody else, I owe money. My family is healthy and happy.”
It wouldn’t be tax day (in form, if not necessarily in substance) if the Raisin Bran™ of celebrity tax delinquents, Robert Snell, didn’t have a scoop today.
To make it even better, today’s edition is none other than perpetually tax-plagued Nicolas Cage.
In a storage locker last month, cops found Nicolas Cage’s rare $1.5 million, Superman comic book, which was stolen from the actor a decade ago. About the same time, the Oscar winner found kryptonite in his mailbox.
The IRS just sent the financially strapped screen star a $624,934 bill for delinquent federal taxes, according to public records.
If this level of irony doesn’t cause you to believe in some kind of benevolent god, then I feel sorry for you.
IRS hands Nicolas Cage pocket full of kryptonite [Tax Watchdog]
“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]
Celebrities suck at taxes. This is known. From Young Buck to Jaime Pressly, there are no shortage of talented-ish people that find themselves in a world of hurt when in comes to complying with the IRC. How any accountants to the stars manage to keep their clients from completely losing their shit this time of year is anyone’s guess.
Luckily for us (everyone out there seems to be suffering from a busy season hangover), a couple of videos we stumbled across more or less put this niche expertise into perspective:
The question over at TV.com, however, is whether or not SNL got its idea for Mort Mort Feingold, Celebrity Accountant from Alan Kaufman, rock star accountant. You can debate that if you feel so inclined but the realism of each is what’s noteworthy here. Anyone with firsthand experience in the A, B, C, or D celebrity clients is invited to share anecdotes at this time.
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.
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.
Sure, it could be shortened for reasons that can’t currently be foreseen but this is a huge blow to the culture…oh, to hell with it.
Judge Terrell Hodges was fed up with this circus and dude is going to jail.
Wesley Snipes was ordered on Friday to start serving a three-year prison sentence for a felony tax conviction after a Florida judge rejected his bid for a new trial.
“The Defendant Snipes had a fair trial … The time has come for the judgment to be enforced,” U.S. District Judge Terrell Hodges said in his ruling.
White House signals compromise on tax cuts [Reuters]
A conciliatory White House said on Thursday it was willing to negotiate with Republicans on tax cut extensions, but Senate Republican leader Mitch McConnell took a hard line against compromises with President Barack Obama in a new Congress.
In the first possible policy shift since Democrats suffered heavy election losses two days ago, White House spokesman Robert Gibbs signaled Obama was open to talks on a temporary extension for the wealthy of Bush-era tax cuts that expire at the end of the year.