As we recover from tax season (unless of course you got an extension) many of us will wait patiently for our returns or write out checks in the hope that we crossed all our T’s and dotted our I’s correctly this year. It would seem the rich and famous should have little to worry about when it comes to having their taxes in order but as we see in the headlines each year, that is not always the case.
A recent report from USA Today discusses the phenomenon of some celebs who seem to have it all, except of course for a good accountant. Lionel Richie is the newest super star who reportedly owes $1.1 million dollars to the federal government. Richie responded in a statement, “I was recently made aware of the situation by my new team and it is being handled immediately.”
Other celebrities who have had tax troubles in the past include Lindsay Lohan, Willie Nelson, Roberta Flack, Pamela Anderson, Nicolas Cage, and more. Bankruptcy lawyer, Dennis McGoldrick, explains how some of the wealthiest people can end up getting themselves into tax trouble when they’re not careful. McGoldrick says, “Their income revs up, and their spending revs up. These people don't save any money. They get a big house. Then work dries up and they can't pay their taxes. It's a fairly common occurrence.”
Are you relieved tax season has come to an end?
What do you think the reason is that some celebrities face trouble come tax time?
I'm sure working in various states and countries probably complicates many things. Plus royalties, bonuses, percentages, etc is probably difficult, so many various people/depts/companies.