IRS Socks TV Personality Montel Williams with $1 Million Tax Lien

Another celebrity has been hit with a massive tax bill.

From The Smoking Gun:

TV personality Montel Williams has been hit with a $1 million federal tax lien, according to Internal Revenue Service documents recorded this week in New York City.

Williams, who hosted his eponymous talk show for nearly twenty years, is being dunned in connection with his 2008 and 2009 individual tax returns. According to the lien (click here to view), the combined amount owed by Williams and his wife Tara for the two years totals $1,039,609.41.

The 54-year-old’s troubles this year have also included his January 5 detainment at the Milwaukee airport, where Transportation Security Administration agents discovered drug paraphernalia in his luggage. Williams was issued a $484 citation for possession of a pipe, and was allowed to continue on his way.

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Baseball's Best Playoff Players For The Buck

From Forbes.com:

High-performing bargain players like Joey Votto and Johnny Gomes are the reason the Reds are in the postseason.

A winning baseball roster isn't put together by money alone. Cash helps, but for most ball clubs, it's limited. And that requires a front office that's savvy enough to find bargains.

This year's eight-team playoff field includes payrolls from all over the spectrum: High (Yankees, Phillies), middle-high (Giants, Twins), middle-low (Braves, Reds, Rays) and low (Rangers). All but the Yankees and Phillies have one common ingredient: at least one player on our list of top performers for the buck among this year's playoff participants.

The most cost-efficient player in the postseason, Reds' first baseman Joey Votto, is a strong favorite for the National League Most Valuable Player Award after hitting .324 with 113 RBI, while leading the league in on-base percentage and slugging percentage. Votto's 2010 salary: $525,000.

To rate players' contributions on the field, we used a method popularized by Baseball Prospectus, Value Over Replacement Player (VORP), which calculates how many net runs a player is responsible for producing for his team relative to a hypothetical "replacement" player assumed to perform at an average rate for minimal cost. We then factored in salary to determine players' performance per dollar. Votto's VORP score of 78.2 was fourth-highest in the majors in 2010, and easily the best on a per-cost basis among postseason players.

Oprah: “I'll Pay the Taxes for My Aussie Giveaway”

According to TMZ.com, the Oprah Winfrey Show will take care of the tax liabilities of her recent Australian giveaway. Oprah made headlines a few years ago when she gave away automobiles to her audience members, and then left them high and dry when the enormous tax bills arrived.

TMZ spoke with Larry Edema from Michigan -- who was selected to be in the audience on Monday for Oprah's big giveaway -- and dude tells us Winfrey had a certified public accountant on hand to address the tax issue right after the taping.

Edema says the CPA informed the group that all taxes associated with the trip would be "handled by the Oprah show," so the trip would truly be 100% free.

The CPA also explained that O would cover all sightseeing costs and travel-related expenses -- including passport costs for people who can't afford them.

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Celebrities with the Worst Money Problems

We have all heard it said, “Mo’ money, Mo’ problems”. Although most of us associate celebrity status with money and fame, a lot of the so-called “rich and famous” are actually facing serious financial problems. WalletPop.com put together a great piece on which celebrities have the largest money issues. You can find a section or their list below, but checkout the full article at WalletPop.com.

Tiger Woods: $100 million

The $100 million that Woods owes to his ex-wife in a divorce settlement may not be a money problem to Woods, who has a net worth of $900 million and makes $85 million a year, according to CelebrityNetWorth.com. But $100 million is still a lot of money and it has to hurt to write a check that large to an ex. And with his golf game falling short lately, that annual salary may also be on the decline.

Jay-Z: $50 million

The rapper must be thankful he signed that $150 million music deal with concert promoter Live Nation. That money should come in handy as he tries to cover his $50 million loss on two Manhattan hotel projects that he bought in 2007, but has been unable to turn into J Hotels. Some reports have him spending $65 million on the property. Whatever the amount, it's been a losing proposition for Jay-Z. The housing market crashed, something even Jay-Z, born Shawn Carter, couldn't fix with the Midas touch he has had on his other businesses.

O.J. Simpson: $33 million

After being acquitted of murdering Nicole Brown Simpson and Ronald Goldman, a civil court found Simpson liable for $33.5 million to the Goldman family in a wrongful death suit. But then things got even worse. Simpson is now in a Nevada prison serving up to 33 years for robbery and kidnapping. Simpson tried to make money by writing a book entitled If I Did It, Here's How It Happened, but that project was quickly shelved.

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IRS Files $1.13M Tax Lien Against Lil Wayne

From WebCPA:

The Internal Revenue Service has filed a tax lien for $1,138,760 against rap singer Lil Wayne, who is currently in jail on weapons charges.

The lien covers taxes owed from 2004, 2005 and 2007. The 27-year-old performer, also known as Weezy but whose real name is Dwayne Michael Carter Jr., has had problems with the IRS in the past. The IRS filed a lien for $977,840 against him in 2008, but he paid the taxes he owed later that year, according to the Detroit News.

Carter was arrested in July 2007 for possessing a .40 caliber pistol and marijuana following a performance at New York’s Beacon Theatre. He pleaded guilty to the weapons charge and is currently serving a one-year sentence on Rikers Island in New York.

Wesley Snipes Loses Appeal in Tax Case

Last Friday it was reported that Actor Wesley Snipes would indeed have to serve jail time for tax evasion, after he lost his appeal. For those of you who might have forgotten, Snipes was sentenced to serve three years in prison for failing to file tax returns for 1999 through 2001.

A federal appeals court on Friday upheld the 47-year-old actor's 2008 conviction in an Ocala, Florida, court for three misdemeanors stemming from felony tax charges.

At his sentencing in April 2008, prosecutors said Snipes, a Florida native who has a residence in Windermere, had earned more than $38 million since 1999, but had filed no tax returns or paid any taxes.

John Mccain: I Would Never Tax Snooki's Tanning Bed

From CNN.com:

During the ten minute sneak peek of “Jersey Shore” season two, we see the effects the Obama administration has had on our dear friend Snooki’s lifestyle: the girl has been reduced to getting her faux glow with a spray tan.

Among the many revelations Schnickers made within those few minutes – she’s found love with an “amazing gorilla juicehead”; she gets crazy when handed "a bottle of freaking SoCo" – one of them was political.

“I don’t go tanning anymore, because Obama put a 10 percent tax on tanning,” Snooks said after her juicehead sprayed her face with one last coat of self-tanner, just to be on the safe side.

“I feel like he did that intentionally for us. McCain would never put a 10 percent tax on tanning. Because he’s pale and he would probably want to be tan," the pint-sized fist-pumper explained.

McCain confirmed Snooki's assertions in a tweet.

The Arizona Senator wrote, “@Sn00ki, u r right, I would never tax your tanning bed! Pres Obama’s tax/spend policy is quite The Situation but I do recommend wearing sunscreen!" To which Snooks responded: "Haha Yes!"

Prince & The Taxman

It looks like another celebrity may be in trouble with the IRS. According to Carver County, Minnesota famed musical artist Prince is delinquent on his state tax liabilities. As this Associated Press article explains Price’s business (PRN Music Corp.) owes over $227,000 to local tax agencies, on top of his personal tax obligations.

PRN Music houses Prince's Paisley Park Studios in Chanhassen. County records list several other properties under his full name, Prince R. Nelson, as delinquent.

County taxpayer services manager Laurie Engelen estimates PRN Music and Prince's other properties owe about $450,000 in taxes.

PRN and Prince's studios don't have listed phone numbers. A talent agency that has represented Prince didn't immediately respond to e-mail seeking comment.

The delinquency list was published last week in the Chaska Herald.

Snoop Dogg and Eve Owe Uncle Sam

Hip-hop artists Snoop Dogg and Eve have both reportedly joined the ever growing list of celebrities who owe tax debts to the IRS. According to DT News, the IRS “filed a $598,309 tax lien against Snoop Dogg last month. The new debt dwarfs a tax lien filed last year against the 38-year-old rapper, who showed up all over Detroit during the 2006 Super Bowl, holding a private concert and attending the game. He also was one of the headliners at the Rothbury Music and Art Festival in 2008.”

Just last week it was also reported that Eve “owes in excess of $357,000 in back state and federal taxes.”

• In January 2008, the IRS in LA filed two liens against her, one for $242,245 and another for $56,597.

• In January 2009, that same branch filed two additional liens against Eve, one for $29,439 and other for $29,059.

Former N'Sync Member J.C.Chasez in Tax Trouble

From Examiner.com:

N'Sync was once one of the hottest boy bands around and J.C. Chasez was one-fifth of the members, which also included Justin Timberlake, Joey Fatone, Lance Bass and Chris Kirkpatrick. You would think the guys would've walked away from that deal without a financial worry in the world.

Apparently for J.C. Chasez, that is not the case. The America's Best Dance Crew judge just had a lien filed against him by the state of Mississippi accusing him of owing $206,965 in delinquent taxes.

Tiger Woods New Mistress Woe: Tax Evasion Charges

As the country continues to follow Tiger Woods, and the excessive media coverage of his transgressions, many financial experts are beginning to wonder what – if any – tax implications his affairs might lead to. According to reports, Tiger gave away thousands in “hush money” to different women, and as the Improper.com points out in this article it could result in a gift tax penalty.

Woods reportedly wired tens of thousands of dollars a month to his mistresses, according to MSNBC, quoting several unnamed women who were involved with the golfer. The dollar amounts range from $5,000 to $10,000 per month, and some of the women claimed to be getting as much as $20,000 per month.

“The money comes via a wire transfer,” one woman told MSNBC. “There’s no contract about it, there’s no discussion about what it’s for, but it’s implied that it’s in exchange for keeping quiet about his affair.”

If Woods is paying women to be quiet, he better have covered his tracks, a tax expert said. “The IRS regulations require that someone gifting in excess of $13,000 per year file a gift tax return,” John Fisher, a Pennsylvania-based tax attorney, told the New York Daily News.

In addition, any person who receives $10,000 or more in gifts must report the amount on their tax return, declare the money as income and pay taxes on it.

If the money was for “services rendered” it still must be reported as such, and Woods, or his corporation, would have had to issue 1099 tax forms to the women.

IRS Wants Sinbad to Walk Plank

From the Detroit News:

Comedian/actor Sinbad's financial problems just got a whole lot worse. The Benton Harbor native, who emceed Motown Records' 50th anniversary gala last month, owes more than $8.15 million in delinquent federal taxes and the U.S. Attorney General's office wants his house sold to help satisfy the debt, according to federal court records.

On Dec. 10, an assistant U.S. attorney asked a federal judge to foreclose on several tax liens and determine the 53-year-old comedian (full name Sinbad Adkins) is the true owner of a $1.5 million home in Hidden Hills, Calif.

The home's title is held by his brother, Michael Adkins, but since 1998 the federal government says mortgage interest and property taxes either have been paid by Sinbad's company Afros & Bellbottoms Productions Inc. or by the comedian's personal checking account.

Sinbad, who rose to fame on "Star Search" in the 1980s before starring in a string of movies like "Houseguest" and TV shows, really owns the property, the government claims. One possible hiccup, however. On Dec. 11, the day after the government filed the case, Sinbad filed Chapter 7 bankruptcy in California, listing between $10 million and $50 million in liabilities and less than $50,000 in assets.

The IRS claims Sinbad filed federal income tax returns for years 1998 through 2006 but failed to pay the reported taxes.

IRS & State Target Playmate Pam Anderson

From DET News.com:

Pam Anderson - the actress/Playmate/home movie star and ex-wife of Detroit native Kid Rock - owes more than $1.9 million in delinquent taxes, records show.

What's owed:

The IRS filed a $1,700,173 lien against Anderson on Oct. 19 with the Los Angeles County Recorder of Deeds.

The state of California filed a $252,360 lien April 7 in Los Angeles.

Her side:

Neither Anderson not her publicist could be reached for comment.

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The Two Newest Celebrity Tax Scandals

Celebrity and New York rap artist Nas has become the newest celebrity to get in trouble with the IRS, just 2 weeks after Method Man another New York music artist joined the list of celebrity tax evaders. The IRS has filed a lien against Nas for $2,584,206.31 in unpaid income taxes. Check out this article on Examiner.com that discusses both Nas’ and Method Man’s problems with the IRS.

The other celebrity in trouble with the taxman is Anna Nicole Smith, who passed away well over 2 years ago. According to TMZ the IRS has filed a $125,112.86 federal tax lien against her estate in Los Angeles earlier this month.

Professional Athletes with Tax Problems

Over the past week two professional athletes have had their IRS tax problems splashed across the headlines. First on the list is professional golfer Jim Thorpe, who has pleaded guilty to failing avoiding over $2 million in federal income taxes.

According to the Associated Press, Thorpe was charged in February with seven counts of failing to pay federal taxes on income he earned in 2002, 2003 and 2004. He will face a maximum of two years in prison and a $4.1 million fine when sentenced.

The other was famed boxer Floyd Mayweather Jr. who recently agreed to pay $5.6 million in back taxes after the IRS threatened to take the money from winnings that resulted from his victory Juan Manuel Marquez. Check out the following article on Mayweather’s tax problems from Google News.

The IRS sent the Nevada Athletic Commission a levy notice on Sept. 4 ordering Mayweather's unpaid taxes from 2007 to be deducted from his $10 million fight purse, commission executive director Keith Kizer told The Associated Press.

Kizer said the IRS backed off one week later, after Mayweather agreed to pay the money. Mayweather won the fight in a unanimous decision.

Mayweather's tax attorney, Jeffrey Morse, told the AP on Tuesday that federal officials never intended to take Mayweather's purse, and the five-division champion has satisfied all his IRS debts.

"Floyd has — and I will absolutely attest to it — more than satisfied every tax obligation that he has," Morse said. "As of today, as of some time ago, which I can't tell you when, he owes zero to the IRS."

The 5 Biggest Celebrity Tax Scandals of 2009

So far in 2009 there have already been a dozen or so celebrities who have made headlines for their tax problems. I have covered a couple of them on my blog so far, but since there have been so many I wanted to put together a list of the biggest celebrity tax scandals. The individuals listed below may be rich and famous, but that does not mean anything to the Federal government. If you do not pay your taxes then the IRS will come after you, even if you are a celebrity.

5. David Brenner

Best known for his stand up comedy, Brenner is also and established author, actor, and filmmaker. He has made over a hundred television documentaries, one of which was even honored with an Emmy award. Brenner also holds the record for the most appearances on "The Tonight Show", with over 158 in his career. Currently, he is working on a new comedy website that will reportedly be known as The Funny Deli.

Earlier this year it was announced that Brenner owed the IRS over $68,222 in unpaid tax liabilities. Although he avoids discussing his finances in interviews, public records show that Brenner filed Chapter 7 bankruptcy in 2004, listing more than $1.73 million in liabilities and only $78,324 in assets. Unfortunately that did not seem to fix his financial troubles, as the IRS filed a lien against his property on June 25^th of this year. Reports claim that Brenner has already negotiated an Installment Agreement with the IRS to repay his debts through monthly payments. For more information on IRS Installment Agreements, check out this page on my law firm’s website.

4. Stephen Baldwin

Nearly everyone in the country has heard of the famous Baldwin brothers. Nearly all four siblings work in the entertainment industry and Stephen is no exception. He first showed interest in entertainment while attending high school where he was active in choir and theater. Although he starred in films such as "The Beast of War", his first break-through role was in the 1995 hit movie "Usual Suspects”. Recently, he appeared in a handful of reality shows including "Celebrity Apprentice" and “I’m a Celebrity … Get Me Out of Here.”

Although he has been on a number of shows over the past few years, Stephen and his wife Kennya were forced to file chapter 11 bankruptcy earlier this year. In addition to millions of dollars in mortgage debt, the couple also owes the IRS a reported $749,974 in Federal tax debts stretching from 1999 to 2008. Their filing also cited another $194,527 in state tax debts owed to New York.

3. Sinbad

Although Sinbad was once a popular comic, these days his financial troubles are getting more attention than his comedy. Since the beginning of his career in the early 80’s, Sinbad has appeared in several motion pictures including "Jingle All The Way" and "The First Kid." Unfortunately, he has not had a hit project in nearly a decade.

In 2007, it was announced that Sinbad topped California’s list of delinquent taxpayers, with a state tax debt totaling over $2.1 million. At that time it was reported that the debts dated back to 1993. Two years later, Sinbad has apparently still has not settled his tax problems. He once again made California’s list of the top 10 delinquent taxpayers, but this time it is reported that he now owes the state over $2.5 million.

2. Chris Tucker

Comedian and actor Chris Tucker became famous in the early 1990’s because of films such as "Friday,” "The Fifth Element," "House Party 3" "Money Talks," and the “Rush Hour” trilogy. In fact, for the third Rush Hour movie, Tucker was reportedly paid over $20 million, something only a few elite actors can claim. In addition to his films, Tucker is also known for being friends with other celebrities including Bill Clinton, Jackie Chan, and the late Michael Jackson.

Considering the fact that Tucker earned millions of dollars in the past decade, it surprised me to learn that he owes the State of California nearly $3.6 million in unpaid taxes. The state recently slapped Tucker with a lien for the debts stemming from the years 2001-2002 and 2004-2007. Unfortunately, little is known as to the reason for his tax delinquency since his publicist has refused to make any statements on the issue.

1. Nicolas Cage

Nicolas Cage took the number one spot on my list of the 5 biggest celebrity tax scandals for a number of reasons. First of all, he is probably one of the most famous actors to wind up in trouble with the IRS. He has appeared in dozens of hit movies including “Moonstruck" and "Lord of War", Ghost Rider." Most recently he was seen in the "National Treasure" films, which ironically featured a character that had to go back to work because of IRS tax debts.

Just a few weeks ago, the IRS issued a lien against Cage in the in Orleans District Court in Louisiana. The lien cited delinquent IRS tax liabilities from 2007 totaling over $6.2 million, which is higher than any other celebrity on my list. The address listed on the lien is Cage’s $3.55 million haunted mansion in New Orleans, which was initially built for French royalty. Unfortunately, Cage has not spoken out regarding his debt, so there are no details on whether he has attempted to settle with the IRS or not.

Cage & Diamond: Two More Celebrity Tax Offenders

The IRS must be getting more aggressive in their collection of taxes from celebrities. Last week I made two posts about half a dozen new celebrities who had their tax delinquencies made public, and over the weekend two more offenders were identified.

Nicholas Cage

Cage, who ironically starred in a movie where unpaid taxes was a major part of the plotline (National Treasure: Book of Secrets), reportedly owes the IRS more then $6.2 million in unpaid taxes 2007. The IRS even issued a lien on Cage's $3.55 million haunted mansion in New Orleans.

Dustin Diamond

Saved by the Bell star Dustin Diamond has also been accused of neglecting to pay his taxes. According to gossip site TMZ, Diamond owes $21,015.62 in unpaid taxes to the state of Wisconsin. Apparently a lien was filed against his property, and the courts claim that no settlement has been reached.

Even More Celebrity Tax Evasion

Just the other day, I posted this entry about three new celebrities who owe taxes either to the IRS or the state of California. Now, according to new reports, another handful of famous taxpayers can be added to the list of celebrities with tax problems.

Steve Austin

Retired wrestler Steve Austin, known as “Stone Cold” Steve Austin to his fans, reportedly owes the State of California over $22,000 in unpaid taxes. The state even filed a lien against his property last month. Austin’s agent could not be reached for comment, so the reason for his tax debt is still unknown.

David Brenner

Famed comedian David Brenner owes the IRS a staggering $68,222 in delinquent taxes. Brenner, who filed for bankruptcy in 2004, does not deny that he owes the taxes, and states that he has already negotiated a payment plan to pay his debts off over time. When asked how he incurred the debt, Brenner jokingly explained, "I lost a bet that President Bush would learn how to pronounce the word 'nuclear,'"

Anna Kournikova

Although her total tax debts are less than the rest of the celebrities on the list, I was especially surprised to see that tennis star Anna Kournikova has tax problems with the state of California. Just last week the filed a $6,381 tax lien against her for unpaid tax debts. When reached, the athlete’s agent could not comment as to where the tax debt came from.

Lea Thompson

Lea Thompson, famous for her role playing Marty McFly’s Mom in the popular “Back to the Future” films probably wishes she could go back to the future and pay her taxes correctly. Earlier in the week it was revealed the actress owes $8,691 in unpaid state taxes.