What do Marion Barry, Rob Lowe, Wyclef Jean, Vera Wang and Lindsay Lohan have in common? IRS trouble!
No matter how famous, talented or connected, whether actor, designer, politician or musician, in the eyes of the Internal Revenue Service they are simply “taxpayers.”
The average taxpayer who chooses a withholding status and then turns tax collection over to the HR department for payroll withdrawal often scratches his or her head at the very wealthy who can’t seem to get a handle on paying their taxes.
Keep in mind that many of these famous tax delinquents are independent contractors or self-employed, making their taxes quite a bit more challenging; not to mention the difficulty of correctly reporting income earned in a variety of states. And while many in high income brackets employ a business manager, not all of those managers have tax expertise, especially when they are spouses or other family members.
Keep in mind that many of these famous tax delinquents are independent contractors or self-employed, making their taxes quite a bit more challenging; not to mention the difficulty of correctly reporting income earned in a variety of states. And while many in high income brackets employ a business manager, not all of those managers have tax expertise, especially when they are spouses or other family members.
Many celebs that are getting good tax advice to form a corporation in order to shield themselves from personal liability, and to protect personal assets from corporate creditors. In addition to lowering risk, there are numerous tax advantages to incorporation.
But it’s probably safe to say that most celebrities prefer not to spend a lot of time thinking about taxes (not unlike the majority of the American public).
But it’s probably safe to say that most celebrities prefer not to spend a lot of time thinking about taxes (not unlike the majority of the American public).
Celebrities and non-celebrities alike should contact a licensed tax practitioner or Tax Attorney to ensure they don’t wind up paying more than they need to or find themselves sharing a cell with Wesley Snipes!
Need Tax Advice?
Contact the Tax Lawyers at Marini & Associates, P.A.
or Toll Free at 888-8TaxAid (888 882-9243).
Source
NAEA
Read more at: Tax Times blog
