The IRS conducts more than a million audits every year. It takes months after the April 15 deadlines to complete these proceedings, and when they are done, the notices for tax code violations start coming. Likewise, news about celebrities having tax problems also come out.
Most recently, celebrity tax news featured Fantasia Barrino, the R&B singer behind “Get It Right”, and Melissa Gilbert, known for starring in Little House on the Prairie. There are certain lessons to be learned from the stories of unpaid taxes of these stars.
Peaks and Problems
Celebrity tax debt usually accumulate together with major expenses in the past, unpaid loans, and other financial struggles after the height of their careers. Gilbert went through divorce and had a stalling career in Hollywood. Barrino, on the other hand, lost her home in North Carolina after defaulting on a loan. Alongside these money troubles, they raked thousands of dollars in unpaid taxes ($360,551 for Gilbert and $92,837 for Barrino).
Second Chances before Seizures
Tax liens were issued on each of their properties. They can pay off their liabilities before their assets get seized. If you experience a similar struggle, a tax lawyer that’s experienced in handling IRS issues can help out.
If you accumulated hefty tax debt when you still earned a healthy income and you are now facing sums of debt, penalties, and interests with not enough means to pay them off, your tax law professional can help you apply for an offer in compromise.