Check out this new press release to find out my advice to the rich and famous on staying out of trouble with the IRS. No one, not even actors, musicians, or reality stars are exempt from paying taxes!
Do not place total trust in your accountant. Every taxpayer is ultimately responsible for paying their own taxes. Make sure you know what your accountant is reporting on your tax returns, and make sure every deduction or credit listed on your returns is permitted given your situation.
Review your tax return it before you sign it! Once you sign your tax return, you are fully responsible for every item on that return. Remember, the IRS will not come after your accountant to collect unpaid taxes, they will come after you. You might even consider having your tax returns reviewed by more than one tax professional to ensure that your tax obligations are met.
Do not ignore tax issues when they arise. The sooner you deal with your tax problems, the easier and cheaper it will be. Penalties and interest can quickly double and triple your original tax bill. In addition, if you wait until liens are filed, those liens are public record, and will be uncovered quickly by the press. If you do not want to hear or read about your tax bills in the news, handle them immediately.