Two more celebrities do battle with the taxman

 

There's nothing funny about comedian Sinbad's tax trouble
 
The news for comedian Sinbad seems to grow worse every day. So far, he owes the state of California $2.5 million, and his growing total debt to the federal government now stands at $8.15 million. According to federal court records his problems go back to 1998. The IRS says that Sinbad has filed tax returns for each of the years in question, but he failed to pay the taxes.
 
Here's a breakdown of his IRS debt:
 
·                     1998: $2,358,563
·                     1999: $1,136,002
·                     2000: $1,170,451
·                     2001: $953,758
·                     2002: $626,045
·                     2003: $542,942
·                     2004: $612,367
·                     2005: $157,934
·                     2006: $599,663
 
Now the U.S. Attorney General wants the comedian's house in order to pay part of the debt. On December 10, 2009 an assistant U.S. Attorney asked a federal judge to foreclose on several tax liens against Sinbad, and to determine who is the actual owner of a house in Hidden Hills, California. The house is held in the name of Sinbad's brother, Michael Adkins. But the mortgage and insurance on the house have been paid since 1998 either by Sinbad personally or through his company, Afros & Bellbottoms Productions, Inc. Just one day after the federal government filed its request, Sinbad filed for Chapter 7 bankruptcy in California. He listed his assets at less than $50,000 and his liabilities at somewhere between $10 million and $50 million.
 
The 53-year-old comedian, whose real name is David Adkins, is a native of Benton Harbor, Michigan. He rose to fame back in the '80s appearing on Star Search. Since then he has made several movies, including Houseguest and First Kid, and has had roles in various TV shows. This March he will part of the cast of Celebrity Apprentice. Recently he returned to Michigan to emcee the Motown Records 50th anniversary gala.
 
Famous mistress and author Amber Frey in hot water with the IRS
 
Amber Frey is not a movie or television celebrity, but her name became nationally known for her association with Scott Peterson. In 2004 Peterson was convicted of the 2002 murder of his pregnant wife Laci and their unborn child. His conviction came after a long period of leading authorities on a search for Laci, who he claimed disappeared while walking the family dog. He was sentenced to death and now waits on Death Row. Frey was Peterson's girlfriend at the time and was apparently unaware that he was married. She learned of his marital status and of Laci Peterson's disappearance when she saw Scott Peterson being interviewed on the news as he told the nation that his wife was missing. After the conviction, she wrote a book, entitled Witness, detailing what happened from her point of view.  
 
In September 2008 Frey lost her home to foreclosure and now faces tax debt of $225,000. According to records, a lien was filed in Fresno County by the state of California, on February 2, 2009, for $41,888. On November 23, 2009, the IRS also filed a lien in the amount of $183,109 in Fresno County.
 

Related articles:

Some California celebrities are in the public eye for owing taxes

O.J., Dionne, Sinbad among top tax scofflaws

You may like these other stories...

Being an accountant doesn't mean you're giving investment advice to clients. However, at tax time, accountants often have to deal with the results of any investment advice clients obtained during the year—the...
Anti Burger Kings: Seven US companies shrinking tax the old-fashioned wayBurger King’s decision to combine with Canadian donut shop Tim Hortons is renewing controversy over the lengths some US companies will go to...
A new report released on Tuesday found that the US airline industry receives nearly $1 billion in tax breaks annually from states for jet fuel.The study, conducted by UNITE HERE International Union, a labor union that...

Already a member? log in here.

Upcoming CPE Webinars

Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.