TAX MASTERS NO HELP FOR TAX PROBLEMS – ABC NEWS

ABC News expose on Tax Masters

Lots of Big Stars Are in Big Trouble With the Tax Man

By Lindsay Carlton
Published March 21, 2011|FoxNews.com

March 26, 2010: Al Pacino poses for a portrait in Beverly Hills, Calif.
Despite their high-priced tax attorneys and mega-millions, big stars can find themselves in big trouble come tax time.

Take Hollywood director Martin Scorsese. He was recently nailed with a $2.85 million bill for unpaid taxes. Scorsese was charged for past-due tax and related interest penalties. Although Scorsese’s spokeswoman Leslee Dart says the entire amount is now paid in full and that he has no current IRS debts, sources say the Oscar-winning director’s tax woes are due to his dealings with celebrity accountant Kenneth Starr. Starr was jailed for seven and a half years for a $33 million ponzi scheme, and has duped other superstars in his corrupt plots. He scammed Hollywood heavyweights such as Uma Thurman, Lauren Bacall and Al Pacino, to name a few.

Pacino allegedly failed to pay taxes for two years, a bill for $169,143 in 2008 and $19,140 in 2009, totaling $188,283. Anyone who would stiff this “Godfather” star out of $200,000 might be sleeping with the fishes too, but luckily for Al Pacino, the IRS doesn’t handle their business the same way the mob does. Pacino poured the blame on Starr, his business manager and close friend for years. The money hungry financier apparently used a lot of his fraudulent earnings to play sugar-daddy to his younger wife, ex-pole dancer Diane Passage, who enjoyed a lavish lifestyle. “Managers can be very helpful, but many are not skilled in the area of tax planning and some are outright greedy when given control of celebrities finance,” said Ray Lucia, a certified financial planner.

A spokesperson for Pacino said the “Scarface” actor is working to resolve the situation as soon as possible with a new financial manager.

Another Hollywood cash cow who skipped his IRS bill is Jennifer Lopez’s husband, Marc Anthony. The Latin crooner owes $3.4 million for unpaid taxes on his Long Island mansion. Anthony has a history of running from the tax man. In 2007 he failed to pay taxes on his $15 million income over a five-year-period and ended up paying $2.5 million in back taxes. One might assume that such a power couple would have a better handle on their finances, but some tax attorneys aren’t surprised. “They live in a world where everyone gives them more and more leeway and slack — and they slowly develop an attitude of being above it all,” said Doug Burns, a federal prosecutor who has prosecuted dozens of tax fraud cases.

One pop star even sang a song about paying bills, the aptly titled “Bills Bills Bills,” but then forgot to fork up the cash herself. Former Destiny’s Child singer Kelly Rowland owes $98,634 in back taxes. The government filed a lien against her on Nov. 8, according to the Detroit News. The songstress hasn’t had much success since splitting from the Beyonce Knowles-led girl group. She also recently parted ways with her long-time manager and Beyonce’s father, Matthew Knowles. “Celebs who are attending to other details in their lives may brush taxes aside for later, but by then it’s too late,” said CelebTV.com host Kelli Zink.

“Survivor” winner Richard Hatch has had his fair share of tax trouble. The reality star spent three years in jail for failing to pay taxes on the $1 million prize money he won on the hit show. Hatch is heading back to the slammer for not settling a tax bill that is now reportedly up to $2 million. Hatch is currently starring in Donald Trump’s “Celebrity Apprentice” show. Although the episodes of the series have already been filmed, he will miss the live finale in May while he finishes his sentence behind bars. Along with his prison term, Hatch will remain under supervision for 26 months, and 25 percent of his wages will be garnished to pay back the IRS.

Joe Francis, founder of “Girls Gone Wild,” also spent some time behind bars for his tax tribulations and says the IRS targets celebrities every year around tax day. To avoid glitches in your taxes, Francis recommends Hollywood newcomers hire reputable business managers and get references from their other clients. “Good financial managers are helpful, ones like Bernie Madoff are awful. I was young, I was making a lot of money,” Francis said. “You trust people like lawyers and accountants. I didn’t even sign my own tax return. I didn’t even question it.”

No Pardon for Billy the Kid: What About YOUR Tax Problems?

New Mexico Governor Bill Richardson has just announced that he will not pardon Billy the Kid, citing a lack of conclusiveness and historical ambiguity surrounding the pardon allegedly promised to Billy by then governor Lee Wallace.   The value of a pardon to Billy is of some question, as he has been dead for quite a while now. If he was hoping for official state forgiveness from some spectral perspective, surely he is disappointed but not surprised — many commentators had said the pardon didn’t have a ghost of a chance.

Massachusetts Tax Help

Why did the effort to pardon Billy the Kid fall apart?  Some of the issue is the lack of clear documentation about what happened around Billy’s case.  A lack of documentation can be a big problem for tax payers as well: without the right records and proof of your income, expenses, and more, it’s difficult to defend yourself against allegations from the IRS and state tax authorities.  If they say you’re not in compliance, and you have no proof to the contrary, are you out of options?

Did you know that the IRS keeps records about every taxpayer?  The Freedom of Information Act, passed by Congress in 1966 and updated three times since, entitles you to a copy of the file the IRS has on you.  Getting a copy of this file can be essential in helping you determine the best way to resolve your tax issues.  Professionals such as a tax CPA or income tax attorney request and access these records all of the time to best protect their client’s interests.  You can request a copy of your file yourself, but that request from an individual taxpayer can attract unwanted attention.  Interpreting the IRS’s files is difficult and requires specialized knowledge.

You deserve qualified, experienced professional assistance with your tax problems.  You have a right to know the information the IRS keeps about you and your family!  There may be some unanswered questions about Billy the Kid’s history with the government — but you don’t need to have any unanswered questions yourself!

Terrified Couple Avoids Date With U.S. Marshall

Don and Alicia knew they were in serious trouble. They had not filed tax returns for several years and owed the IRS over $240,000. Unfortunately, they had ignored an IRS Summons demanding their appearance before IRS Revenue Officers with records relating to both their personal finances and Don’s business. As a result, IRS Revenue Officers referred the case to IRS attorneys who demanded Don and Alicia’s appearance and the production of their financial records or they would refer the case to the U.S. Department of Justice for prosecution by the U.S. Attorney’s Office. At this point they knew they were in BIG trouble. Fear set in and so did procrastination. Like a deer caught in the headlights of an oncoming car, Don and Alicia froze and did nothing. It was only a matter of time before things would erupt into an ugly situation. The case was soon referred to the Department of Justice to be prosecuted by the U.S. Attorney’s Office for failure to comply with the IRS Summons. The next step for failure to comply with the Summons would be a date with the U.S. Marshall’s Office. Don and Alicia called our office just two weeks before their scheduled court appearance in U.S. District Court. They met with our firm visibly shaken and extremely upset. Reality set in and they knew it was time to resolve their problem but were terrified of the possibility of a U.S. Marshall arriving at their home with a warrant for their arrest at an ungodly hour. Our firm helped Don and Alicia prepare the tax returns and financial information necessary to get to the negotiating table with the IRS. We then contacted the IRS and the U.S. Department of Justice and negotiated withdrawal of their suit to enforce the Summons, thus avoiding a date with the U.S. Marshall’s Office. With the imminent threat of danger gone, our firm could focus on resolving their overall tax problem.