The Philadelphia rapper pleaded guilty this week to failing to file federal income tax returns for 2003, 2004 and 2005. The IRS believes that Sigel failed to pay nearly $350,000 in federal income taxes over that time period on more than $1 million in income. This is just the latest in his fairly long history of legal troubles. He beat an attempted murder charge for which he was tried twice. And he pleaded guilty to gun and drug charges back in 2004. Apparently Sigel was earning money while in prison, and failing to report that income. Sentencing is set for November 18th and he could face up to three more years prison time for his tax issues. Click here for the complete story and some interesting background information on the career of Beanie Sigel.

Have you noticed that the celebrities who find themselves in hot water with the IRS are usually those aging stars whose careers seem to be going downhill? It’s no coincidence. Something similar tends to happen with business owners whose businesses are suffering. Income drops, but they tend to hold out hope that things will improve.  And by “hold out hope” I mean that they do not change their standard of living or their celebrity lifestyle.