O.J. Simpson Hit with Tax Debt and Foreclosure
by Terri Eyden on
By Teresa Ambord
In prison for a total of thirty-three years, and he's still drawing fire from multiple sources.
Currently, O.J. Simpson is being targeted by the IRS, and it's not the first time. The tax agency just filed a second lien on him, this one for 2011 income, in the amount of $17,015.99 (couldn't they have rounded up a penny?). Last year, the IRS filed a lien in the amount of $179,437 that relates to income from 2007 to 2010. That lien encumbers Simpson's home in Kendall, Florida, which is soon to be auctioned off.
Meanwhile, Simpson is incarcerated at the Lovelock Correctional Center in Nevada after being convicted on charges of kidnapping and robbery in 2008. He has a good excuse for ignoring his tax situation, considering that he has been locked up, but in spite of being incarcerated, Simpson continues to have a healthy income. The former Buffalo Bills runner and Heisman Trophy winner still receives an NFL pension of $19,000 a month, and the IRS wants a piece of it.
The state of California is also feeling miffed, it seems. Last November, the Golden State – which is facing its own heavy financial burdens and growing more aggressive every day – hit Simpson with a lien of $318,566.06 for unpaid taxes going back twelve years.
If all that isn't enough, on January 30, 2013, a foreclosure action against Simpson will go to trial in a Miami-Dade County court. Although Simpson's original mortgage was with Washington Mutual, now defunct, JPMorgan Chase bank is pursuing foreclosure on Simpson's $575,000 home for nonpayment. Simpson stopped making payments on the home back in 2010, about two years after he went to prison. Yet court records show that JPMorgan continued to send a process server to his home at 9450 SW 112th Street in Kendall, Florida, every day, in a futile effort to serve him papers relating to the foreclosure. Simpson is reportedly fighting the sale of the home through his attorney, who said in his pleadings that the bank's filing is "ambiguous and vague."
After Simpson was tried and ultimately acquitted for the murder of his ex-wife, Nicole Brown Simpson, and her friend, Ron Goldman, in 1994, he was still found liable in a civil trial. Based on that verdict, he was ordered to pay the Goldman family a civil judgment for $33.5 million. His move to Florida was seen by some as an attempt to escape paying that judgment.
Unfortunately, finding new digs was not as easy as it might have been. In spite of being acquitted of the murders, the stain of the charges followed him in his house-hunting efforts. Several gated communities reportedly shut the gates when they saw Simpson coming. With few options, he ultimately purchased the four-bedroom Kendall home for much more than it was worth.
The proceeds of the home sale will presumably clear much of his tax debt.
Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked
1 week 6 days ago by mucar1990