2012 Ends with Tax Bang for Some Celebrities

By Teresa Ambord
 

Here are just a few of the celebrities who are wrapping up their year mired in tax debt.

Pamela Anderson, of Baywatch and Dancing with the Stars, owes back taxes of about $370,000 related to 2011 income. Two liens have been filed against her, one courtesy of the IRS, in the amount of $259,395. The other is for $112,118 from the state of California.
 
This is a second round of tax trouble for Anderson, the first one occurring in 2009. Back then, her California tax debt landed her a spot on California's Top 500 Delinquent Taxpayers list. So far, she hasn't made the 2012 list, but time will tell. 
 
Her recent stint on Dancing with the Stars didn't go well for her – she was the first one to bite the dust. In the last few years, Dancing with the Stars seems to have been a magnet for famous tax delinquents, including Anderson, actress Melissa Gilbert (Little House on the Prairie), singer Aaron Carter, actress Shannen Doherty, Green Bay Packer wide receiver Donald Driver, race car driver Helio Castroneves, and others. 
 
Gary Busey, of Point Break and a participant on Celebrity Apprentice, recently survived bankruptcy, clearing more than $57,000 in debts owed to creditors. But that pales in comparison to the nearly half a million ($451,297.33 to be exact) he owes in back state and federal taxes. When reporters asked him to comment about his debt he told them, "When you have too much, it's a good feeling to let go. My new hobby is just breaking even."
 
O.J. Simpson's various troubles seem to continue unchecked. He's in a Nevada prison now for kidnapping, armed robbery, and other charges from a 2007 incident in Las Vegas. And of course, in spite of his acquittal in the mid-90s, he lives under the shadow of suspicion surrounding the still-unsolved murder of his ex-wife and her boyfriend. Now he can add tax debt to his list of problems. By some estimates, his net worth is $750,000, but he owes the IRS $179,435. This debt accumulated from tax years 2007 to 2010 while he has been incarcerated at the Lovelock Correctional Center in Nevada. 
 
Simpson is serving a minimum of nine years without parole, out of a thirty-three-year sentence. There is one bright spot for him. A Nevada judge agreed in October 2012 to reopen the armed robbery and kidnapping case against him to determine if his conviction resulted from bad representation.
 
Bringing up the rear in terms of tax dollars owed is Britney Spears and her ex-husband Kevin Federline, who owe more than $37,000 to the state of California. Spears' representatives say the tax lien was filed in error. Compared to her 2012 earnings of $58 million, this is about two days of work. Spears is contesting the lien.

You may like these other stories...

Truckers and other owners of heavy highway vehicles take note: Your next federal highway use tax return is due on September 2.The September 2 due date, which was pushed back two days because the normal August 31 deadline...
The head of the IRS has a message for taxpayers and tax preparers who have endured long wait times while on the phone with the tax agency: Call your member of Congress.During his keynote speech at the 69th Annual Meeting of...
Regulators struggle with conflicts in credit ratings and auditsThe Public Company Accounting Oversight Board (PCAOB), which was created by the Sarbanes-Oxley Act in 2002, released its third annual report on audits of...

Already a member? log in here.

Upcoming CPE Webinars

Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.