Sinbad's Mountain of Tax Debt: It Ain't So Funny

By Teresa Ambord
 
For comedian Sinbad – real name David Adkins – life hasn't been all that fun for the last several years. Right now he's in debt to the tune of nearly $11 million. Of this amount, more than $8 million is owed to the IRS and another $2.3 million to the state of California. Now he's filing bankruptcy, for the second time. 
 
Adkins' federal tax debt relates to income earned in 1998 through 2006. That's in addition to his state tax debt and other federal debt for the years 2009 through 2012. His other debts include about $375,000 to American Express and over $32,000 to Bank of America.
 
The fifty-six-year-old comedian reports assets of roughly $131,000. According to court documents, he pulls down about $16,000 a month. That's not a bad income for most people. But given his tax situation, it looks like it will take a financial miracle for him to dig himself out from under his mountain of debt. Nevertheless, he remains optimistic, telling talk show host Oprah Winfrey he will eventually rebound. "It's never over. There is no one defining moment that kills you or makes you," he said.
 
Was he a spend thrift? He told Winfrey he didn't get to this point by living an extravagant life. "I didn't buy Bentleys. I didn't live large. I invested in me. I invested in a lot of other people. I would not change it; I would not go back." 
 
His possessions include:
  • 2007 BMW 750i
  • 2006 VW Beetle
  • 2010 Ford F150
  • 2010 Lincoln Navigator
  • $5,000 in-home office equipment
  • Two hundred copies of Sinbad's Guide to Life (Because I Know Everything), selling used for $0.01 to $3.99 on Amazon
Back in 2009, Adkins filed for bankruptcy the first time, however, his case was dismissed when it was determined he lacked the right documents. Now he's taking another stab at it, having recently filed for Chapter 13 to try to get some measure of relief.
 
Sinbad appeared in the movies Houseguest and Jingle All the Way, TV movies, and a season of Celebrity Apprentice
 
Related articles: 
 
 

You may like these other stories...

Federal judge tosses IRS lawsuitsBernie Becker of The Hill reported that a federal judge sided with the IRS on Thursday, tossing out two lawsuits filed against the tax agency over its improper scrutiny of Tea Party groups...
Amidst the dark clouds hovering over the IRS this year—ranging from the lingering Tea Party scandal to other improprieties to damaging budget cuts—at least there's a ray of sunshine in a new report from the...
SEC, Big Four Chinese affiliates make progress in talks over audit documentsMichael Rapoport of the Wall Street Journal reported that the US Securities and Exchange Commission (SEC) and the Chinese affiliates of the Big Four...

Already a member? log in here.

Upcoming CPE Webinars

Oct 30Many Excel users have a love-hate relationship with workbook links.
Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.
Nov 12This webcast presents basic principles of revenue recognition, including new ASU 2014-09 for the contract method. Also, CPAs in industries who want a refresher on revenue accounting standards will benefit.
Nov 18In this session Excel expert David Ringstrom, CPA tackles what to do when bad things happen to good spreadsheets.