Worst Celebrity Tax Mistakes
While it might seem that celebrities come with special treatment or privileges, the IRS would not agree.
Even some of the biggest stars have run into trouble when it comes to their taxes.
The Two and a Half Men star ran into his tax trouble back in 2018. It was uncovered in court documents that the star owed $4,967,376.41 in back taxes.
OUR TIP: For those who know they will owe the IRS at the end of the year, we suggest making estimated tax payments quarterly to avoid a large unpayable bill at the end of the year.
Mike “The Situation” Sorrentino
This celebrity certainly did run into a situation. Sorrentino did time in prison after pleading guilty to tax evasion. He owed the treasury nearly $9 million in income taxes.
Richard Hatch, winner of the first season of Survivor, failed to report nearly $1 million in earnings. He was required to serve three years in federal prison for his crime. Several years later he failed to file and pay his taxes again and landed himself back in prison.
Not only was she sentenced to prison for insider trading, but Stewart also owed nearly half a million dollars in back taxes. It’s been reported the taxes resulted from her failure to pay taxes on the sale of one of her homes.
After being charged with failure to file and pay taxes for a year, Cage was slapped with a bill of $6 million after interest and penalties accrued.
OUR TIP: Filing late is always better than not filing at all. Just realize that penalties and interest will add up until paid.