If you have back tax issues, a New Year’s tax resolution should top the list. As I mentioned in a previous post, the IRS is getting more aggressive with consumers including celebrities who may be hiding income, cheating on taxes or ignoring their back tax debt.
The latest celebrity who should be considering New Year’s tax resolution is rapper Joseph Cartagena, aka Fat Joe. Accounting Today reports in their article: Rapper Fat Joe Failed to file for $700k that Fat Joe pleaded guilty to two counts of failing to file tax returns for 2007 and 2008. For those tax years, he owes taxes of $713,038 for approximately $3.7 million in income.
The musician has been released on $250 thousand dollars bail, but still could face up to two years in prison and a fine of $200,000 plus court costs. Failing to file income tax returns is very serious, and I use this case as an example because without the right tax representation, Fat Joe could wind up behind bars-like actor Wesley Snipes who is serving three years in prison for not filing his.
Here’s hoping Fat Joe rings in the New Year with an IRS tax settlement that gets him back into tax compliance and keeps him out of prison.
Lindsay Lohan’s New Year’s Tax Resolution: Paying Tax Debt
For some celebrities, finding tax debt relief means taking their IRS tax problems very seriously. An example is Lindsay Lohan and her chronic tax problems with the IRS. As I wrote about not so long ago, Ms. Lohan ignored her massive tax liens, causing the IRS to levy her bank accounts for payment. However, it appears the 26 year old actress may have finally begun her “tax resolution“ with Uncle Sam by paying off portions of her enormous tax bill.
According to an exclusive TMZ article titled: Lindsay Lohan: Proof I’m Paying Taxes with Charlie Sheen’s Money, it appears the actress paid off a tax lien using money Charlie Sheen gave her. TMZ found the “official” lien release revealing the actress paid her 2009 tax debt of $93,701 in full.
Also, according to TMZ, sources close to Lindsay have said she taking serious steps to free herself from IRS debt by doing the following:
- Applying the remaining $6,300 (from Charlie Sheen’s $100k contribution) to pay down her 2010 IRS debt of $140,203.
- Actively attempting to raise money so she can get out of the red as soon as possible.
With the New Year just days away, it is a great time to make your News Year’s tax resolution to put your tax debt issues behind you and get into tax compliance. Contact a seasoned qualified tax professional who can discuss tax relief options with you to help resolve your tax problems once and for all. Get a fresh start today!
More Tax Help, IRS News and Tax Relief Tips:
- Rapper Nas and His Giant IRS Tax Issues
- Tax Relief Weekly News Round Up
- Ask the Certified Tax Specialist – Small Business Back Taxes
- Delinquent and Unfiled Tax Returns? 8 Steps to Resolving Them
- Tax Resolution Expert-Five Reasons to Hire One