Yes, More Celebrity Tax Debt: Kelly Rowland's Owes the IRS $100K

I'm actually getting tired of writing about celebrities owing the IRS. I can't keep caught up. Inexplicably, the latest offender to enter my radar is Kelly Rowland.

She was a member of Destiny's Child, the top-selling girl group of all-time. You'd think she'd have the cash and the resources to pay the IRS...

The Background: As a member of Destiny's Child Kelly Rowland had a share of the profits from four studio albums that sold over 40 million records worldwide, another 50 million including their solo album sales before the group split up.

The Tax Debt: The Detroit News revealed Kelly Rowland owes the IRS $98,634 in back taxes, prompting the government to file a lien against her lavish oceanfront property in Miami, Florida.

The Irony: Kelly Rowland once portrayed a Motown Legend Martha Reeves, who also current has some Tax Scandals of her own to resolve.

The Moral: You know the deal by now, the IRS doesn't make exceptions. Rich or poor, famous or not, you have to pay your taxes or else.

More Celebrity Tax Debt:

-File Your Taxes You'll Get Caught Just Like Beanie Sigel

-Pay Your Taxes Don't End Up Like the Rich and the Careless

-Crocodile Dundee Owes Multi-Million Tax Debt, Crikey!

- Armed IRS agents seized assets from Young Buck

- Billionaire Red McCombs is still fighting the IRS

- Alicia Keys just married into a multi-million tax debt

- Comedian Chris Tucker forgot to give the IRS his cut

- Khloe Kardashian owes the IRS thousands

- Hip Hop Artist & Haitian Presidential Candidate Wyclef Jean owes the IRS $2.1 million

- One Thing Your and Naomi Campbell have in Common with the Tax Man


- Princess Bride's Cary Elwes Owes the IRS

Billionaire Warren Buffet Says the IRS Should Raise Your Taxes!

Well...maybe not your taxes, unless your among the wealthy taxpayers (most of whom fully support the Bush Tax Cuts for obvious reasons). In contrast to most, Warren Buffet fully supports letting Bush Tax Cuts for upper-income taxpayers expire.

"If anything, taxes for the lower and middle class and maybe even the upper middle class should even probably be cut further," Buffett said. "But I think that people at the high end -- people like myself -- should be paying a lot more in taxes. We have it better than we've ever had it."

Watch the Video:

Funny Tax Videos for the Thanksgiving Weekend

Tomorrow is Thanksgiving- you can't be bothered with reading much about taxes this weekend, so I've provided some must-watch tax videos to make you laugh over the holiday.]

Cat Does Taxes



How to Bluff Your Way Through an IRS Audit



How to Survive a Tax Audit



How to File Your Taxes on the Last Day

Have a Happy Thanksgiving Weekend!

The Princess Bride's Cary Elwes Owes the IRS? Inconceivable!

Cary Elwes is famous for his roles in the classic films "The Princess Bride" and "Robin Hood" Men in Tights" (where he plays the same character, as far as I can tell). He was also in the hit comedy "Liar Liar". Ironically, I don't think he can lie his way out of a $68,648 tax debt!

British actor Ivan Simon Car Elwes hasn't commented on his new position on the long list of celebrities who owe the IRS, but with new movies like "Saw 3D" and "Psych 9" on the way; he's going better than most who owe the IRS.

More Celebrity Tax Debt:

-File Your Taxes You'll Get Caught Just Like Beanie Sigel

-Pay Your Taxes Don't End Up Like the Rich and the Careless

-Crocodile Dundee Owes Multi-Million Tax Debt, Crikey!

- Armed IRS agents seized assets from Young Buck

- Billionaire Red McCombs is still fighting the IRS

- Alicia Keys just married into a multi-million tax debt

- Comedian Chris Tucker forgot to give the IRS his cut

- Khloe Kardashian owes the IRS thousands

- Hip Hop Artist & Haitian Presidential Candidate Wyclef Jean owes the IRS $2.1 million

- One Thing Your and Naomi Campbell have in Common with the Tax Man

The Lesson is Clear: Pay your taxes! File your taxes! If you're working with an accountant or even a team of financial advisers (like some of these celebrities were) do your due diligence and check them out. If you end up owing the IRS, it won't be your accountant that gets slammed with a tax debt, you will!

Does the IRS Have YOUR Money? IRS Seeks to Return $164.6 Million in Checks

Does the IRS have your money? The IRS has announced they have $164.6 million in undelivered refund checks. The checks average $1,471 and one of them could be yours.

Wrong Address? According to the IRS, 111,893 taxpayers miss out on their refunds because of mailing address errors. If the IRS does have your current address, quickly update the info and get your money!

Retrieve Your Refund: Using the IRS's "Where's My Refund" service is the best way to check on the status of your late or missing refund check. You can call them at 1-800-829-1954. Or you can visit "Where's My Refund" on The IRS Website.

In order to Retrieve Your Refund info You'll Need:

• Your Social Security Number
• Filing Status
• The amount of the refund shown on your 2009 tax return

The Scam Alert: Many taxpayers are desperate, they don't know where their money is but they don't want to contact the IRS.

There are many online scammers using this to their advantage. If you see e-mails requesting personal information like your social security number or bank account information for your tax return, beware. This e-mail is not from the IRS. 

Do YOU Want To Pay More to the IRS? Learn About the AMT

Do You Want to Pay More to the IRS?

The alternative minimum tax, or AMT, is still up in the air. It's a matter congress hasn't addressed yet, and it's an important one that could save your tax dollars.

I think the info graphic below perfectly illustrates what could happen if the current legislation on the AMT is not extended:

[Click here to see the original version]

To Summarize: Without the alternative Minimum Tax patch, middle-class taxpayers could owe a greater amount of alternative tax to the IRS. Congress needs to take action and save taxpayer's money A.S.A.P!

Steven Colbert Weighs in on Bush Tax Cuts

Watch this hilarious video as Steven Colbert takes on the Bush Tax Cuts and addresses the following question:

If a poor person falls on hard times in the woods...and no one cares...did it really happen?

The Colbert Report	Mon - Thurs 11:30pm / 10:30c
The Word - Nothingness
www.colbertnation.com
Colbert Report Full Episodes 2010 Election March to Keep Fear Alive

What Happens When I Can't Pay the IRS in Full?

You'd pay the IRS if you could...but you can't. Bills are piling up. Finances are suffering. You have other priorities and the IRS is not on the list. Luckily, there are plenty of solutions when you can't pay the IRS in full.

Make the Choice: Protect your assets by paying the IRS voluntarily. Really, your first step is to get proactive and face your debt before the IRS forces you to!

Pay the IRS Monthly: If you can't pay in full but can pay the IRS monthly, an Installment Agreement is the best payment plan for you, but you can't miss a payment until your debt is paid in full.

You Can't Pay the IRS: Those in serious financial trouble might be able to settle their tax debt with an Offer in Compromise. It's incredibly difficult to settle tax debt, so check with an expert before you attempt it.

Don't Slip Up: Once you're making monthly payments you cannot miss a single payment if you want to protect the funds in your band and your assets!

The IRS Loophole: The IRS will try to set the monthly payments as high as possible, if you can't work it down to an affordable amount you should consider hiring a professional to represent your case before the IRS.

What about my Refunds?: If you are still paying down a debt from back taxes, any money coming to you via refund will be applied as payment on the debt. You won't see returns until your debt is repaid in full.

Pick Something! Don't procrastinate. Don't give the IRS an excuse to go after your wages, bank accounts, or assets. Get proactive, pick an option, and work from here to satisfy your debt.

What's the Craziest Thing You Ever Did to Save on Taxes?

It's confession time. I know from personal experience as a former IRS Revenue Officer that taxpayers do some incredibly crazy stunts to save money on taxes.

I've seen taxpayers:

- deduct children that don't exist
- claim pets as children
- claim other family member's children
- try to write-off personal vacations as business deductions
- try to justify every expense under the sun!

This list could go on and on. I have several blog posts on the subject that cover the wacky things taxpayers attempt to get away with in detail:

Strangest Tax Write Offs Ever

Is Your Dog a Tax Write Off? Use Pet Tax Deductions and Reap Huge Savings

Tax Fraud: Top 3 Ways You'll Go Straight to Jail

What are some the craziest things you've done to reduce your tax bill?

What's are the Income Requirements for an Offer in Compromise?

I received the following e-mail yesterday:

I'm going to file a Chapter 7 in the next few weeks (real estate issues). IRS debt to new (2008/2009)and doesn't qualify for discharge. Is an offer in compromise my only option and what are income requirements for successful Offer...Thanks.

I receive a lot of questions about Offer in Compromise "Income Requirements". This is the answer:

- First, it's incredibly difficult to settle your tax debt with an offer in compromise, I've said it before and I'll continue to say it.

- There are no income requirements per se. The IRS calculates your ability to repay the tax debt before the statute of limitations on the debt (10 years) has expired.

- This means even if you are facing tough financial times and have filed for bankruptcy, the IRS will still look to the future at your recovery and your ability to repay them in years to come.

Yes, it's a trap! But there could be a chance for you to be approved for this plan or similar plans. You have to really analyze your situation. What is your financial situation? Why are you unable to pay the IRS? Why should the IRS allow you to settle your debt?

The IRS Says "Hell No!" to Breast Pumps

I've been asked for my opinion on the IRS decision to exclude the cost of breast pumps and related supplies from their tax-sheltered accounts.

 The IRS ruled that breast-feeding doesn't have enough health benefits to qualify as medical care. You asked my opinion, and my option is; that's bull and I'm glad I no longer work for the IRS!

I agree with this feedback from Cheryl on the matter:

"It's absurd! Even if breastfeeding is a nutrition issue, from good nutrition leads to better health. Yeah, good nutrition is “mandatory” and goes without saying, but the incentive here is the health benefits that breastfeeding provides on long-term studies.


Breastfeeding isn’t easy, and sometimes you need the help to get going, and even keep going. Medical necessity. There’s a reason why it is preferred to than formula."

There is scientific evidence and studies that prove breast-feeding prevents health risks in children, but the IRS doesn't care.

The IRS claims breast milk is a food that promotes good health, not unlike eating citrus fruit prevents scurvy. They say the costs of breast pumps, bottles, and pads don't deserve a tax break anymore than an orange juicer (Did I already mention I'm glad I don't work for these people any more?)

Final Words: You'd be surprised what is considered tax deductible as a medical expense. Acne cream, denture adhesive, contact lens solution, even replacing grass with artificial turf (because of allergies) could qualify for a deduction. Why shouldn't breast pumps?

What's your opinion? Do you think breast pumps and accessories should be tax deductible?

November's Important IRS Dates

A new month is upon us, along with a new set of IRS Deadlines. We're entering the IRS's fourth and final quarter. Here's the important IRS dates you need to know:

Click the image above to enlarge

November 1
File Form 720 for the third quarter of 2010. File Form 730 and pay tax on wagers accepted during Sep. File Form 2290 and pay the tax for vehicles first used during Sep. File Form 941 for the third quarter of 2010. Deposit FUTA owed through Sep if more than $500.

November 3
Deposit payroll tax for payments on Oct 27–29 if the semiweekly deposit rule applies.

November 5
Deposit payroll tax for payments on Oct 30–Nov 2 if the semiweekly deposit rule applies.

November 10
Employers: Employees are required to report to you tips of $20 ore more earned during Oct. File Form 941 for the third quarter of 2010 if you timely deposited all required payments. Deposit payroll tax for payments on Nov 3–5 if the semiweekly deposit rule applies.

November 15
Deposit payroll tax for payments on Nov 6–9 if the semiweekly deposit rule applies. Deposit payroll tax for Oct if the monthly deposit rule applies

November 17
Deposit payroll tax for payments on Nov 10–12 if the semiweekly deposit rule applies.

November 19
Deposit payroll tax for payments on Nov 13-16 if the semiweekly deposit rule applies

November 24
Deposit payroll tax for payments on Nov 17–19 if the semiweekly deposit rule applies.

November 29
Deposit payroll tax for payments on Nov 20–23 if the semiweekly deposit rule applies.

November 30
File Form 730 and pay tax on wagers accepted during Oct. File Form 2290 and pay the tax for vehicles first used during Oct.

See the November IRS Calendar here
Download a PDF of the IRS Calendar here

Mark your dates and don't miss an IRS payment during this crucial time of year!