You might think being rich and famous would be the end of your tax woes, this certainly hasn’t been the case for celebrities from Al Pacino, Pamela Anderson and even the most highly paid model in the world, Gisele Bundchen.
Gisele Bundchen may have just been named number one in Forbes’ Top 10 Most Highly Paid Models list but the sought-after supermodel has been racked up quite the tax bill owing $72,003 to the IRS. But this is surely spare changed for the Bundchen-Brady power house whose annual salary is upwards of $26 million.
Lindsay Lohan is one starlet notable for her run-ins with the law, so it doesn’t come as a surprise that the actress, gearing up for her new role as Elizabeth Taylor is running up a nice tab with the IRS. The troubled star reportedly failed to pay $140,203.30 in federal income taxes for 2010 and allegedly still owes $93,000 from 2009. Let’s hope her new movie pays off!
But sometimes celebrity tax troubles are not all their fault. Uma Therman, Al Pacino and Martin Scorcese all fell at the hand of the notorious former certified public accountant and attorney, Kenneth Starr who was convicted of running a $33 million Ponzi scheme and has since been sentenced to 7 years in prison. The Oscar-winning actor Al Pacino was fined $188,283.50 for back taxes from 2008 and 2009 and Back in 2002, Oscar winning director Martin Scorsese was fined with three tax liens totalling nearly $1.8 million and has since been charged with a $2.85 million tax debt which he can thank Starr for.
On the other hand, National Treasure actor, Nicholas Cage blamed his financial manager, suing him for negligence and fraud when looked to be hiding his own national treasure with claims he owes over $13 million in taxes. His manager claimed that Cage was simply living above his means with a taste for fine art and pricey cars.
American crooner, father to Nicole Richie and father-in-law to the The Voice’s Joel Madden, Lionel Richie can add his own tax indiscretions to the list, accumulating a whopping $1.13 million in unpaid taxes dating back to 2010.
Pamela Anderson mostly hits the tabloids for her short-lived rocker marriages and being scantily clad rather then her tax issues. The former Playboy Playmate who already owed California $607,861, now owes another $524,241 after not filing the correct amount in annual taxes!
MC Hammer, the ‘Can’t touch this’ hit maker known for his questionable choice in pants, was forced to admit his frivolous spending. In 2011 US government filed a lawsuit against the artist for $779,585 owed in back taxes.
There was no such luck for the youngest of the Baldwin brothers, Stephen Baldwin who filed for bankruptcy in 2009. It was reported he owed over $1 million! Little help, Alec?
And to feel the biggest sting by the tax man is eight time Grammy award winning artist, Lauryn Hill. The soul singer has recently been accused of failing to pay taxes on more than $1.6 million dollars earned in 2005, 2006 and 2007 from recording and film royalties. The American singer-songwriter could face a penalty of up to a year in prison and a $100,000 fine on each of the three charges. Ouch!
Don’t get caught out like these celebs!
Check out Finance Expert, Anthony Bell’s tips for pre-tax time preparation.