Hip Hop Icon Doug E. Fresh Owes 2 Million to IRS

According to Hip Hop RX, music icon Doug E. Fresh (known as The Human Beat Box) is in debt to the IRS for more than $2 million. He has reportedly been dealing with financial problems for over two decades. Just one more in the long list of celebs with tax problems…

Doug E. Fresh, real name Douglas E. Davis, 44, has a lien against him for $2,276,848 dollars, according to the Detroit News. The tax lien against Doug E. Fresh was reportedly filed on October 20th.

This is not the first time Doug E. Fresh has had trouble with the IRS, as back in December of 2008, New York Post reported that the IRS filed a $367,000 tax lien against the hip hop pioneer plus over $40,000 in state taxes.

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Wesley Snipes Ordered To Surrender For 3-Year Prison Sentence

It looks like Wesley Snipes has reached the end of the road in his tax evasion case. The Judge just rejected his last appeal request and has ordered him to start serving his three year prison sentence. Reports are rolling in that Snipes surrendered to authorities on Friday and is in lockup as I write.

"The defendant Snipes had a fair trial; he has had a full, fair and thorough review of his conviction and sentence. ... The time has come for the judgment to be enforced," the judge wrote in his 16-page decision.

The 48-year-old star of the "Blade" trilogy and Spike Lee's "Jungle Fever" was convicted in 2008 on three misdemeanor counts of willful failure to file his income tax returns. He was acquitted of two more serious felony charges.

The Federal Bureau of Prisons would not say where Snipes was to surrender until he was in custody, though inmates generally are placed within 500 miles of their residence, said spokesman Edmond Ross.

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How Much Did Florida Tax Laws Factor Into LeBron James' Decision?

Although two-time MVP LeBron James has been praised by supporters for taking less money in pursuit of winning championships, as this article from AOL News explains, he actually stands to save money by moving to Florida. Why? Because the state of Florida does not have a personal income tax.

James looks to make an estimated $17 million next season by signing with the Miami Heat. Factor in endorsement deals with companies including Nike, Sprint and McDonald's totaling approximately $40 million, and James may find himself saving an estimated $25 million in state taxes over the next five years in Miami. Compare this with New York, where even if James signed a contract with the Knicks for an additional $1.5 million, he would be required to pay almost $1.7 million in state taxes, all on top of the additional income tax taken out of his endorsements.

Although the extra money alone was certainly not the only reason James is moving on from Cleveland -- he does have two friends named Bosh and Wade who will also live and work in the area -- public icons taking state income tax into account is actually nothing new to celebrity culture.

Rapper Method Man Pleads Guilty to Tax Evasion

Celebrity and rap star Method Man plead guilty in a New York court yesterday, for failing to pay State income taxes for years 2004 – 2007. After paying the State $106,000 in restitution and penalties, he will not have to go to jail. Read more on the story from E! Online below:

As part of a deal with prosecutors, the 39-year-old hip-hopster, real name Clifford Smith, was sentenced to a conditional discharge, which means he'll avoid jail time after paying approximately $106,000 in restitution, penalties and interest he owed to New York State. The arrest will also be expunged from his record if he stays out of trouble.

Method Man was busted Oct. 5, 2009 for failing to file returns and pay state income tax from 2004 to 2007.

"Failure to pay your taxes is not a victimless crime," said Richmond County District Attorney Daniel Donovan, Jr. "In these days of massive budget shortfalls and service cuts, tax evasion is a crime against all New Yorkers. Whether you are a celebrity or an 'Average Joe,' you will be investigated, arrested and prosecuted."

Judge Alan J. Meyer approved the plea arrangement on Monday. A rep for the How High rapper was unavailable for comment.

Wesley Snipes' Lawyers want to Adjust Appeal Request After Adviser's Arrest

From SF Gate.com:

Wesley Snipes' attorneys are requesting that judicial officials in Georgia dismiss their petition appealing the actor's tax evasion conviction following the arrest of his former financial adviser.

The "Blade" star was convicted of three misdemeanor counts of willful failure to file his income tax return in 2008. He is currently free pending an appeal to reduce a three-year prison sentence on U.S. federal tax charges.

Meanwhile, Snipes' one-time accountant, celebrity investor Kenneth Starr, was busted in May and accused of embezzling a massive $30 million from stars including the action star, Uma Thurman and Martin Scorsese.

Starr has been charged with wire fraud, investment adviser fraud and money laundering amid claims he used the stolen cash to buy a luxurious Manhattan apartment.

Snipes' lawyers are hoping Starr's arrest will help the actor's own case, and they filed papers in the 11th Circuit Court of Appeals in Atlanta on Wednesday, asking for judges to ignore their petition for an appeal.

Instead, Snipes' attorneys want to lodge a new petition asking to have the star's conviction dismissed, or set up a new trial on the grounds that the actor was the victim of a "miscarriage of justice."

Aretha Franklin Fails to Pay Tax Bill

It was less than 2 years ago when Aretha Franklin paid off a $190,000 delinquent tax bill, but she has found herself in trouble with Uncle Sam once again. It was reported that the state of Michigan filed a lien against Franklin in the amount of $11,076.

This is the latest in a string of late payments and debt that drew headlines two years ago. Franklin paid off those debts and took her lien-free pipes -- and hat -- to President Obama's inauguration last year.

But Franklin also owes 2009 delinquent taxes of $33,729 on her Bloomfield Hills home, according to the Oakland County Treasurer's Office. If unpaid, she would face foreclosure in 2012.

What's owed

The state of Michigan filed an $11,076 lien against Franklin on March 23 with the Oakland County Register of Deeds. According to the lien, the income taxes were assessed Dec. 11, 2009.

Cage Owes $6,617,550.84 in Tax Debts

Earlier in the year I put together list of the 5 biggest celebrity tax evaders of 2009, and although Nicolas Cage was already at the top of my list, recent reports have emerged claiming that he owes more then everyone had originally thought. According to TMZ, in addition to the $6,257,005 he owed in unpaid taxes from 2007, he also owed for the following tax years.

2002 -- $70,190.05

2003 -- $179,738.23

2004 -- $110,617.56

That brings his total tax debt to an astounding $6,617,550.84. Associated Content also claims that Cage owes another $2 million to the East West Bank. With all the money he makes form his films, many are wondering how Cage could get into such a financial mess. Well, blame the real estate industry. He reportedly owns dozens of properties across the United States and Europe, including an 11th century German castle called Schloss Neidstein that he recently sold. However, with real estate values down all across the world Cage is reportedly having difficulty selling his properties to repay his debts.

Full House Star Dave Coulier Owes Back Taxes

According to WalletPop.com there is a new addition to the list of 2009’s biggest celebrity tax evaders. Earlier in the week it was discovered that 90’s sitcom star Dave Coulier is in serious debt to the IRS. His debts reportedly total over $50,000 and the both the IRS and his home state of California have both issued liens against Coulier to collect the unpaid tax debts.

The state of California filed an $11,793 lien against him on May 4 in the Los Angeles County Recorder of Deeds office. The IRS filed a $37,063 lien against him on March 17, 2008, in Los Angeles County.

Checking up on Dave Coulier's Official website, I found no mention of his little tiff with the taxing authorities. He does however, indicate that he'll be visiting close to my home in Wisconsin next month. I also checked Dave's Twitter feed to see if he tweeted about the situation. He hasn't yet mentioned his back taxes on Twitter, but he does indicate that becoming a senator may be one way to pick your nose in peace - or not.

This much I can tell you for certain; It's better to pay our taxes when they are due, than it is to try retrospectively prying the IRS off our backs. I always suggest leaving tax form preparation to a professional tax accountant, because being able to talk in comical voices won't make a tax audit one bit funnier.

Foxy Brown Owes the IRS Too

It seems like nearly every week I come across a new story about a celebrity or professional athlete who some how forgot to pay their full tax bill. Well it seems like the latest addition to the list is pop music artist Foxy Brown, who has been charged with evading taxes for over 6 years. According to Contact Music Brown owes the IRS over $640,000. Check out a clip of their story below.

Rapper Foxy Brown has been hit with a lawsuit from U.S. tax officials after running up debts of $641,558 (£427,705). The star is accused of failing to keep up with her taxes since 2003, and Internal Revenue Service (IRS) agents have taken their case to a court in New York to try to recoup the cash. IRS officials have filed tax lien documents against Brown for allegedly missing payments between 2003 and 2006, reports AllHipHop.com.

K-Fed's Company Dodges Tax Bill

From DET News:

A company owned by Britney Spears' ex-husband Kevin Federline, a ridiculed rapper and former background dancer, owes $14,371 in federal taxes, records show.

Federline's company, Gooseneck Productions Inc., was set up to handle his "artistic" endeavors, which included the much-maligned tune "PopoZao" and the poor-selling 2006 CD "Playing with Fire."

Federline's finances came into focus last year during a custody battle with Spears. Aside from strip club bills and fancy clothes, court records showed his production company spent $841,129 and made only $544,075.

What's owed:

The IRS filed a $14,371 lien against the company on May 18 in the Los Angeles County Recorder of Deeds office.

His side:

Federline's accountant, Laurence Kantor, could not be reached for comment.

Another Celebrity Tax Issue: Britney Spears

Wesley Snipes isn’t the only celebrity dealing with tax problems. Everyone’s favorite fallen pop star has also gotten into some tax trouble, but with the state of California. According to Access Hollywood, the state tax board has put a lien on one of Ms. Spears’ businesses, Britney On Line Inc. According to reports the company owes almost $24,000 in back taxes from the 2004 tax year.

Wesley Snipes Gets Maximum Sentence

As many of you have probably already heard, yesterday actor Wesley Snipes was sentenced to serve three years behind bards for not paying his federal tax liabilities. The case against Snipes has gained a lot of media attention in this country, and when he was acquitted of the felony charges facing him many people assumed he was receiving the “celebrity treatment” from the courts. However, this strict sentence sends out a clear message: you must pay your taxes or face jail time.

"We think it sends a real message," claimed U.S. Attorney Robert O'Neill. "Again, you have to pay your taxes. If you dispute the taxes you owe, contact the IRS and go through the formal process. To continually just say, 'I don't owe taxes, you must show me why I owe taxes,' it seemed his position was ludicrous."

I agree with Mr. O’Neill’s statement 100%. All Americans must be compliant with the IRS, or you can face serious penalties including incarceration. Just sitting around pretending the IRS does not exist is a crime. If you cannot afford to pay your taxes you can negotiate a settlement with the IRS, but you cannot ignore them. Fortunately, it seems Mr. Snipes learned his lesson.

"I asked this court to show me mercy and the opportunity to set things right," Snipes said after the trial. "This will never happen again. I am very sorry for my mistakes or my errors."