Tucker's IRS Jokes

Posted by Wetenkamp on
image via rottentomatoes.com

When tax relief seems like a distant dream, some people turn to humor . . . especially comedians.  Chris Tucker is still not out of the woods with the IRS, but he has NO problem laughing about his tax problems.  Follow the link below to a hilarious recent video:

Chris Tucker on Tom Joyner Morning Show

Tucker is back in the public eye these days touring around doing stand-up.  When asked what got him back, he jokes that it was the IRS.  He says the IRS told him he needed to get back out there and make some money.  “I made a lot of money in the past,” Tucker says, “and I thought it was all mine.”

Tax policy jokes?  He’s got those too.  Obama’s raising taxes (which he can’t afford to pay), but he will still be voting for him.  And he promises to pay his taxes “when Mitt Romney pays his.”

Tucker’s plan is to keep touring (a tour he has dubbed the “IRS Tour” or the “Help Your Brother Out Tour”) and making money to try to get his finances back in order.  He thinks the IRS might just show up at one of his shows in Dallas to collect the tax debt, so he has to be on his best behavior and continue to live within his means.  “I ain’t buying no more cars, no more houses.  Me, Jermaine Dupri, and Toni Braxton are getting a condo together.”

 

“it might so happen that you forget to pay your taxes”

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The tax man does not discriminate.  Tax problems do not follow any particular socio-economic group; those with back tax debt are as diverse a segment as any.  But it’s interesting how, as a society, we tend to make judgements as to who should be afforded tax relief and who should be required to pay.

We tend to show little mercy when it comes to celebrities.  This guy, for example:

photo via biography.com

Jose Canseco filed bankruptcy recently with intentions of wiping out his mountain of debts, including $500k owed to the IRS.  The web is rife with merciless comments about Canseco and his financial problems.  There is widespread contempt for this man, and even more so now that he’s filed bankruptcy and made some douchey comments recently:

The issue is very simple: If you’ve got friends and family, the more money you make the more you spend on them. So let’s say you spend half your money on them and the rest on yourself and the cost of living. It may so happen that during all of that you forget to pay your taxes.

and . . .

To me, it doesn’t make any sense: If the government prints its own money, why are we in debt?

Another example is Flavor Flav who owes the IRS over $900k.  Behind the oversized clock necklaces and bad reality show gigs is a feeling human being with real-life doubts and worries . . . and mounting tax bills.  However, many people have a hard time getting past the clocks and believe he just needs to pay up.

photo via theurbandaily.com

I don’t get too upset about these stories.  The IRS isn’t settling these tax debts through the Offer in Compromise program.  Even if they qualified for a tax settlement on paper, the IRS wouldn’t accept them as a matter of public policy.  And bankruptcy normally doesn’t wipe out the entire tax debt.  Believe me, these high-profile tax cases get worked very carefully and the IRS gets as much as possible, whether through liquidation of assets or a payment plan, or some combination of both.

May be Too Late to Score Some Young Buck Swag

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image via realtalkny.uproxx.com

If you are following the news stories concerning the financial woes of Rapper Young Buck, you probably know that his IRS situation has escalated to the point that his property is being sold at auction . . . right now.  The auction was to begin today at 10:00am in Nashville.

When a tax debt is not immediately paid, the IRS moves pretty quickly through its arsenal of ordinary collection tools like the wage garnishment and bank levy.  But when it comes to seizure and sale of personal property, the IRS wants to be absolutely sure it has tried every other less-intrusive alternative.  So in the case of Young Buck, and any other property seizure case, we can be fairly certain that the IRS has already tried, perhaps over the course of months or years, to collect what is owed “the nice way.”

The IRS provided a list of everything being sold at today’s auction and even pictures of most of the stuff.  It might be fun to take a look because I can assure you that all your stereotypes and assumptions about what might be sold at an IRS / rap star auction will be . . . well . . . confirmed.

Talk That (tax) Talk

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photo via rihannahairstyle.blogspot.com

Tax talk can be a little dull.  Any time a tax attorney is presented with an opportunity to blog about Rihanna, he takes it.

This last week Rihanna was in the news for suing her accounting firm (as well as two accountants personally) for mishandling her fortunes, failing to advise her properly regarding her finances, failing to file tax returns which put her in the middle of an IRS audit, and for taking excessive commissions.  The actual legal grounds for her suit are breach of contract and negligence.

Rihanna hired the Berdon accounting firm when she was just 16 years old (that’s 7 years ago, if you’re not keeping track).  What I don’t understand is why it took her until September 2010 to fire these guys, knowing they were taking advantage of her celebrity and her wealth.  If what she says is true, this accounting firm was paying itself commissions on gross revenues she earned from lucrative tours.  For example, Berdon took 22% of the revenues from Rihanna’s “Last Girl on Earth” tour, leaving the diva with a 6% pittance.  See full story here.

This litigation will be interesting to follow.

 

"The Misprosecution of Lauryn Hill"

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photo via escobar300.wordpress.com

Taxpayers often call us in a panic because they have received a threatening letter from the IRS and they are one step away from a wage garnishment or a bank levy.  Our clients come from a variety of experiences and backgrounds, but they all have one thing in common: they owe the IRS and can’t pay what they owe.  And many, if not most of our clients, also have missing tax returns.

What are the typical repercussions for failing to file a tax return?  The IRS will send notices asking the taxpayer to file, maybe assign a Revenue Officer to secure the return, possibly file a Substitute for Return, assess a failure to file penalty, etc.  As for criminal prosecution, I’d say it is pretty uncommon.  In fact, failing to file on its own is not criminal; there must be some additional affirmative act to elevate the misconduct to a felony.

I was surprised to hear about Lauryn Hill’s tax troubles today.  She has been charged with failing to file her 2005, 2006, and 2007 tax returns. None of the reports say what the “extra something” was in Hill’s case. My best guess for now is that she simply fits the profile of people they like to prosecute as a public spectacle (i.e., a downward trending musician with an extra large tax bill) and the IRS isn’t about to let her get away with it.

www.mwattorneys.com

Chris Tucker Sheds Assets to Pay Back IRS

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Chris Tucker, the actor best known for his work in the Rush Hour series of films, has been selling his properties in Florida to pay back what he owes to the IRS.

Mr. Tucker owes $11.5 million in back taxes (perhaps somewhat less now that he has sold off some assets). Reports indicate that he sold his Florida properties for much less than fair market value, which indicates to me that he was in a big hurry to raise some cash under pressure from the IRS.

We don’t have the complete details, but with a $11.5 million tax bill, certainly the IRS has already threatened to seize his property. Why else would he take less than it’s worth? The dilemma for Mr. Tucker is if he had not sold the property, the IRS would have seize it and auctioned it off to the top bidder. A taxpayer can normally get a much better price in a private sale than what can be fetched in a public IRS auction. But the IRS doesn’t allow the taxpayer to put a property on the market and wait until he gets his asking price. Pressure from the IRS usually forces the seller to accept less — in this case, less than fair market value.

www.mwattorneys.com

Christie Brinkley Owes Taxes

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A wise person once told me that the best way to make this blog visually appealing is to post pictures of models.  I always liked the idea, but I couldn’t figure out how I would get away with it on a tax relief blog . . . until now.  Of course, now that I have an opportunity to follow through on that advice, it’s a 57-year-old model!

Christie Brinkley owes $531,000 in back taxes.  She says it was an innocent oversight and she is going to pay it right away.  There.  End of story.

www.mwattorneys.com

Beanie Sigel Needs Tax Relief

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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.

Not Playing by Ja Rules

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Who: Recording Artist, Ja Rule (name in IRS records is Jeffrey Atkins).

What: Sentenced to over 2 years in prison.

How much: Failure to report over $3 million in income from 2004-2006.

More info: Ja Rule is currently serving a two-year sentence in a federal prison on a gun charge stemming from his 2007 arrest in New York City.