Five Of The Biggest Celebrity Tax Evaders
Five Of The Biggest Celebrity Tax Evaders, The IRS seized most of Willie Nelson’s assets at one point, but he managed to get them back this way. 5 of the Biggest Celebrity Tax Evaders, The IRS can impose a number of penalties and interest charges. It can even throw you in jail if you don’t file your tax returns. It doesn’t matter if you are a big Hollywood star or a country singer, you can get in trouble with the IRS. Here are five celebrities who found themselves on the wrong end of a tax audit.
Willie Nelson’s long history with the IRS began in 1984 when the agency chose to review his tax returns back to 1972. The extensive audit stretched out for years and the IRS presented him with a bill for more than $6 million in underpaid taxes. He also owed over $10 million in interest and penalties. Nelson’s accounting firm had filed for the singer every year, but it had claimed tax shelters that the IRS disallowed. The IRS seized most of Nelson’s assets and sold them at auction. Most were purchased by friends and supporters who gave them back to the singer. The settlement was negotiated down further and Nelson ended up paying it off. He later sued Price Waterhouse, now PricewaterhouseCoopers, and settled with the accounting firm for an undisclosed amount.
Wesley Snipes is currently contemplating his actions behind bars. Snipes was charged with felony tax evasion for not filing returns or reporting over $14 million in income earned between 1999 and 2001. He was also charged with filing false information to receive tax refunds. Snipes was connected to a group that contends that federal taxation is illegal and unconstitutional. Although Snipes was acquitted of the felony charges, he was convicted on three misdemeanor counts of failing to file tax returns. He was sentenced to three years in jail.
Annie Leibovitz, the American photographer famous for capturing celebrity moments, found herself in front of cameras in 2009 when she was at risk of losing all of her assets, including the rights to her photographs, because she could not repay a loan. Part of the need for the loan was a debt to the IRS of $1.4 million plus interest and penalties for not reporting income earned between 2004 and 2007. Leibovitz also struggled to pay the estate taxes on her home and other properties. Leibovitz has since restructured the loan and is no longer at risk of losing her assets.