The year is ending, and this is the time for tax cheats and debtors to come clean.
Charlie Sheen spent some time recently with Lindsay Lohan.
The two actors, both controversial and sources of tabloid fodder, were on the set of Scary Movie 5.
According to news reports, Lohan told Sheen about her tax problem. She owes, according to previous reports, as much as a quarter of a million dollars in back taxes for 2009 and 2010.
And she couldn’t pay the bill.
That’s how bad tax problems can get. A famous actress was underwater with her tax bill.
Sheen, apparently taking pity on the actress, sent her a check for $100,000 for her to use to pay down the tax debt.
And that’s what Lohan did, using the money to help get out from under her debt to Uncle Sam.
But this isn’t intended to be a celebrity story. Instead, it’s meant to be an instructive one.
If Lindsay Lohan, the former Disney TV star-turned-Hollywood bad girl, can dig a tax hole so deep she has trouble climbing out of it, doesn’t that mean average Americans can find themselves in big IRS trouble — so much so they might not be able to get out of it?
Just this month, in fact, there were reminders of this truth.
A Florida dentist, who over three years diverted business income to a personal account in an attempt to hide it from the IRS, is now facing three years in prison. Read story here.
Across the country, in Colorado, a former Air Force pilot asked the aviation companies he worked for to make payments to him in the name of a corporation. He then funneled those payments through another corporation before he took possession of the money personally, hoping this would allow him to hide the income from the IRS. It didn’t work. He’s now facing up to five years in prison. Read story here.
You might be asking yourself:
Why’s he telling me all this?
The answer is simple. In case you haven’t noticed, the IRS is more aggressive than ever on consumers who are hiding income or otherwise cheating on taxes or not paying their back taxes.
With the economy down, there’s even more pressure on the IRS to bring in revenue.
IRS audits and enforcement have been the key areas of IRS investment, and this is plainly evident through cases including Lindsay Lohan’s as well as those of the Florida dentist and Colorado pilot.
Truth be told, the chances of getting away with cheating on your taxes have never been slimmer and the penalties, including possible prison time and hefty fines, have rarely been higher.
That’s why, with the year coming to a close, now is perhaps the best time to consider whether it’s worth coming into compliance with the IRS.
If you’re cheating on your taxes or have large tax debt, you have options for coming forward. A qualified tax professional can help you navigate these options and represent your interest as you negotiate with the IRS.
This article was written by Michael Rozbruch. I am a Certified Tax Resolution Specialist, a member of the American Society of IRS Problem Solvers and a Maryland CPA. You can contact my office – Tax Resolution Services – at 866-477-7762 to obtain a free subscription to our newsletter titled The IRS Times & Inquirer.
More Tax Help, IRS News and Tax Relief Tips:
- Michael Rozbruch Interviewed in Opportunist Magazine
- IRS Tax Relief News: Tax Case Convictions on the Rise For Americans with IRS Problems
- Tax Resolution News: In 2010, IRS to Put Even More Heat on Tax Cheats
- Tax Relief Weekly News Round Up
- IRS Tax Enforcement Described As Harsh
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