Tax Problems Not Limited: Celebrities in Tax Trouble
Not Limited To Average Joes
Getting into tax debt is no laughing matter, but it’s not limited to average people.
When it comes to celebrities in tax trouble, there’s the usual suspects of Wesley Snipes and Nicolas Cage. Financial problem can lead famous actors and musicians to ask themselves one simple question: “How can I settle my tax debt with the IRS?”
Maybe the old adage of “more money, more problems” rings true. Or, it can be celebrities’ busy schedules and all their seemingly fun lives that cause their back tax debt.
Whatever the cause, even celebrities get into tax debt with the IRS. Here’s a few of them and how big their tax hole got.
Perhaps the biggest tax debtor celebrity was Joe Francis. If you haven’t heard of him, it’s because he’s not an actor or musician. He’s the guy behind the ‘Girls Gone Wild’ video series. He ended up owing the IRS nearly $30 million because he made dishonest tax deductions. While his video series faded away, his tax debt probably didn’t.
If there’s one thing that actor Robert Downey Jr. is happy about, it’s probably the fact that he’s consistently been rated Hollywood’s highest-paid actor over the past few years.
But before he played Iron Man and Sherlock Holmes, his past was haunted with drugs and tax trouble. He owed more than $2 million in state and federal taxes before his career saw a reboot.
Willie Nelson is another celebrity who got into tax debt. Nelson’s tax debt got so big that the IRS auctioned off his property in 1997. He owed $6 million in back tax debt and had to hide his guitar from IRS agents who wanted to seize it. He also ended up owing $10 million in penalties.
Rapper 50 Cent made news for filing for bankruptcy in 2015, but he’s not the only rapper with money problems. Nas owed the IRS $6.46 million in 2011, including liens of $3 million, $2.5 million, and $514,298.
If you listened to rock ‘n’ roll in the 1980’s, you probably heard Vince Neil’s voice on the radio.
He rocked the microphone as Motle Crue’s singer and probably had a great time singing and making a whole bunch of money.
But his vocal chords weren’t enough to keep him out of tax debt. He ended up owing more than $370,000 to the IRS and had to fight an IRS lien.
Motley Crue is now in its final tour, but Vince Neil probably regrets not saving a bit of money to pay the taxman.
As these examples show, tax problems aren’t limited to average people. Even those with abundant resources and celebrity fame fall subject to tax debt.
But with a little help from a tax professional, a tax lien or bank levy can be set-aside with some proper financial management and IRS intervention. Whether you’re a celebrity or average Joe, give us a call to see how we can help your tax situation.