IRS to MC Hammer: We Can Touch This
by AccountingWEB on
By Ken Berry
It's Hammer time: The Internal Revenue Service (IRS) is going after MC Hammer for $779,585 it claims he owes in back taxes dating back to 1996 and 1997. According to entertainment news outlet TMZ, the federal government has initiated a lawsuit to recover the tax debt from Hammer (real name Stanley Kirk Burrell).
The forty-nine-year-old Oakland native, best known for his hits songs U Can't Touch This and Too Legit to Quit, filed for bankruptcy in 1996 after piling up debts of approximately $13 million. In his heyday in the early nineties, Forbes magazine had estimated Hammer's net worth to be more than $33 million. But apparently, his spending habits were even larger than the oversized pants he was famous for wearing in his performances and videos.
"I didn't just take money and say, 'I want to be a blessing to myself,'" Hammer said. "I took my money and employed 200 people in my community. I had a payroll of $1 million a month at times."
Hammer has been out of the limelight for most of the past decade but has tried to bounce back from bankruptcy with new album releases, a career as an ordained preacher, and a gig as a TV show host. He also created a stir last year over a reference to a line by Jay-Z in the song So Appalled that goes, "I lost 30 mil' so I spent another 30, 'cause unlike Hammer, 30 million can't hurt me."
Most recently, Hammer made news for attempting to create a new search engine called WireDoo that's intended to compete with Google and others. The concept is still in the start-up phase.
Hammer isn't the first, nor will he be the last, celebrity who's landed in hot water with the IRS. Less than a week earlier, the agency filed a tax lien against Christie Brinkley for $531,000 allegedly owed in back taxes. The former supermodel has vowed to repay the lien.
You may like these other stories...
Lois Lerner isn’t a Superwoman, but she’s showing at least as much resilience as Lois Lane.A new report released on March 11 by the House Committee on Oversight and Government Reform, one of several government...
Each tax-filing season poses different challenges for small business owners – from understanding the new tax laws and regulations to preparing new forms and disclosures.But according to Kevin Anderson and Doug Bekker,...
In Denver, state legislators are probably thinking, "Why didn't we think of this earlier?" The state of Colorado's retail marijuana sales (separate from medical marijuana sales) in January alone generated...
Upcoming CPE Webinars
BAR is an acronym for: Boundaries, Authority and Role. This simple tool will provide participants with a solid understanding of leadership essentials to improve their performance.
This material is designed to provide a start-to-finish overview of how to plan and complete high-quality small audits efficiently.
In this session Excel expert David H. Ringstrom, CPA shares numerous techniques that you can use to work with charts more efficiently.
Key Accounting and Reporting Issues for Nonprofits No. 1: Overview and Statement of Financial Position
This material focuses on non-profit organizations organization, accounting and reporting.