Blonde Bombshell Owes CA More Than Half-Million

Blonde bombshell Pamela Anderson may have been living the good life as a model and actress for several years, but those times are coming to an end as the taxman comes after her.

The Canadian-born model, actress and Playboy playmate owes California tax authorities $524,241 in back taxes. In fact, the state put her on the list of its 500 biggest income tax scofflaws. State law requires tax authorities to publish the list of 500 twice a year.

But don’t expect California’s Franchise Tax Board to throw her a life preserver. Without the help of a tax attorney she’ll have to be her own lifeguard when it comes to swimming with tax agents.

Anderson’s no stranger to the good life. Just a few years out of high school, Anderson was put into the spotlight as a model for Playboy magazine in October 1989. A couple years later, she donned the trademark red one-piece bathing suit as lifeguard C.J. Parker in Baywatch.

But Anderson’s $524,241 in personal income tax debt won’t be saved by her current or former rock star boyfriends. States are stepping up their collection efforts against millionaires and other high-income earners to recoup tax revenue lost during the recession. That puts Anderson in the taxman’s cross heirs.

Chances are that California’s tax agents know who Pamela Anderson is. But even if they don’t, she’ll be taken more seriously if she hires a tax attorney.

Going head to head with someone like an IRS agent can be tough. But whether you’re a blonde bombshell or a plain Jane, hiring a tax attorney is one way to make sure the IRS treats you like a beauty queen.

Divorce Court Filings Say Frank, Jamie McCourt Paid No Taxes Over Five Years

If any couple in the city of Angels sits at the center of the media spotlight, it’s Frank and Jamie McCourt.

The two have been a focus of the media as they battle over ownership of the Los Angeles Dodgers in divorce court. At the same time, Frank’s battling with Major League Baseball to retain ownership of the team after the Dodgers filed for bankruptcy

Enmeshed in controversy over Frank’s business practices, Dodger Stadium is now the scene of slumping attendance that’s costing the franchise millions of dollars in revenue.

But while Frank and Jamie McCourt battle over their multiple homes and ownership of one of baseball’s most storied franchises, they saved a pretty penny over the last five years of their marriage. One of Jamie’s divorce court filings said the couple paid no state or federal income taxes from 2004 to 2009, leading MLB Commissioner Bud Selig to state that Frank was being investigated by the IRS.

How Frank could dodge the taxman for so long can probably be due to the tricky legal work of a few – and expensive – tax attorneys. Indeed, Frank has received criticism for dividing the franchise into 26 different entities.

In a town seduced by glitz, glamour and good fortune, the McCourts’ high-profile divorce case put them in a league of their own. But while Frank reaps the potential benefits of his tax attorneys (let’s see what the IRS has to say first), those with back tax debt don’t always have to strike out with the IRS.  With a little luck and a good tax attorney, you too can hit one out of the ballpark.

Time limit removed for taxpayers cheated during marriage

Frank Sinatra used to sing that marriage was an institute you can’t disparage. But if you’re liable for your ex’s shady finances, you probably want to tell the Chairman to get out of the Boardroom.

When the IRS holds you financially responsible because your wife under-reported her income or because your husband made a mistake on your joint return, it’s not fun. So the IRS made life a little bit easier for those seeking innocent spouse relief.

The old rule for innocent spouse relief was that you had just two years from the date the IRS began collection action to file for IRS form 8857. The IRS announced in late-July that they’re ditching that rule, giving affected taxpayers greater time to file for certain innocent spouse requests.

Now, the two-year rule won’t apply toward new requests or those currently considered by the IRS. For a taxpayer whose request was denied solely due to the two-year limit, they get another chance to file form 8857.

If you do file for innocent spouse relief, you may be relieved of the responsibility for paying the taxes, interest and penalties as a result of your spouse’s including fraudulent tax info in your joint returns. You’ll have to meet certain conditions, and a tax attorney can help guide you through the process.

Like marriage, your tax debt can turn out messy and complicated. When the IRS goes after you with a wage garnishment or bank levy because of something your spouse did, a tax attorney is a good choice to give you ‘High Hopes‘.

US Companies Urge Tax Haven for Foreign Cash

With $1.5 trillion in cash sitting in foreign bank accounts, Corporate America wants Congress to create another holiday just for them.

After one was created by Congress in 2004, American companies are urging another tax repatriation holiday, where corporate profits sitting in foreign banks would be taxed at a rate much lower than the 35% corporate tax rate. Taxing the cash at just over 5% instead would spur investment, create jobs and inject a dose of adrenaline into a slumping economy, they say.

But this idea isn’t supported by everyone. Small businesses don’t get to store their profits overseas, and even if such a holiday induced an infusion of lower-taxed cash into the US, that money could come out in the form of stock buybacks or dividends with hiring workers just an afterthought.

Some in Washington are floating the idea of regulating how that money can be spent – namely hiring workers and capital investment. How to make the rewards for Corporate America trickle down to middle America can be a tricky task.

But while big companies work the system to pay less in taxes, we work the system for you to resolve your back tax debt. So if the IRS has begun collection action against you, do what the big corporations do: hire a good tax attorney. Maybe one day you might get your own tax holiday.

Jennifer Lopez might owe millions in tax debt as well!

Marc Anthony and Jennifer Lopez may be in the headlines lately for their highly publicized split, but he made his own headlines last year due to tax troubles when he was hit with a $3.4 million lien on his Long Island home. In 2007 he owed $2.5 million in back taxes to federal & state for not filing tax returns on almost $15.5 million in income over five years. We’re not sure if he and J-Lo filed jointly, but if they did, she would be liable for the taxes owed as well!

Many married taxpayers choose to file a joint tax return because of certain benefits this filing status allows. However, both taxpayers are jointly and individually responsible for the tax and any interest or penalty due on the joint return even if they later divorce. This is true even if a divorce decree states that a former spouse will be responsible for any amounts due on previously filed joint returns. One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse.

In some cases, a spouse will be relieved of the tax, interest, and penalties on a joint tax return. Three types of relief are available.

1. Innocent spouse relief
2. Separation of liability
3. Equitable relief

Marriage has it’s ups and downs. Make sure and protect yourself from its pitfalls and consult with a tax attorney before your spouse leaves you with more than your fair share of tax debt. That’s one post-wedding gift no one wants.