It's a two for one deal, I just learned that two double-time IRS offenders owe the IRS. This time it's movie star Val Kilmer (Batman/Iceman) and Marc Anthony (I Need to Know hit singer)owe the IRS...again.
This is the second time in less than 5 years that Marc Anthony has owed the IRS a cool couple million bucks.
The Debt: New York authorities filed a demand for $1.8 million in back taxes against Marc Anthony on March 29, 2010 in Nassau County, Long Island. Just three months earlier, a federal tax lien for $1.6 million was placed on the same property owned by Marc Anthony.
Val Kilmer settled his first issue wiht the IRS, but this second one looks like it's going to be ever more of a challenge.
The Debt: Kilmer owes the IRS $530,000 in federal taxes, has a 6,000 acre ranch in New Mexico for sale. The asking price? $18.5 million. (Good luck with that!) The tax lien was filed in November by the county clerk in Santa Fe.
Recently, the website Free Wesley Snipes was bought to my attention. Their goal? To free Wesley Snipes from his imprisonment, which they believe is unrighteous.
The Claim: The website goes through several reasons why Wesley Snipes should not have been sentenced three years on his "Tax Evasion" charges. Most notably, that he was never charged with tax evasion.
The Truth: It's true, Wesley Snipes was never charged with tax evasion. Wesley snipes was convicted of misdemeanor charges on willful failure to file tax returns. He was given the maximum sentence for this misdemeanors.
The Free Snipes Now website does raise some interesting points:
- Wesley Snipes paid $30 million in taxes over the past 10 years
- Wesley Snipes was ready to product multiple films which could have generated billions in revenue and created hundreds of job opportunities
- Speculation won't die down on this: Is the government using Wesley Snipe's high profile case to "set an example"?
In the end:
The argument about whether or not Wesley Snipe's imprisonment is lawful or not is invalid. If we want to be pedantic about the terminology, then yes, it is true he was not charged with tax evasion. However, he was convicted of the midemeaner of failure to file taxes and is serving the maximum sentance.
What do you think? Should we "Free Wesley Snipes"?
One debt quickly leads to another. When I worked at the IRS nearly every person I talked to owed not only the IRS, but a multitude of creditors. Once you go out of whack, it's hard to gain control on your finances.
What was the advice I offered those who owed credit card debt and IRS debt? Shred up your credit cards, because the IRS will not count your credit card debt as a necessary expense to pay. They want their money first.
Credit cards arenot vital for living (though many pleaded for me to believe otherwise). If you're the type that can get out of control with spending, a credit card is not for you. Shred it up, pay it off, and move on free from one more debt.
Today personal finance blog Free From Broke wrote about a Shred Your Credit Card contest:
From December 15th, 2010 through January 29th, 2011, can can enter a video of yourself destroying your credit card(s) or why you are done with credit in 2011. Upload the video to ShredYourCreditCard.com and you can be entered to win.
More info on entering in this video:
If you're going to destroy your credit cards anyway (great way to start a new year) you can win cash and other prizes if you upload a video of yourself destroying the plastic.
Here is what you can win:
- One (1) GRAND PRIZE of a $1000 Visa(R) Gift Card will be selected and awarded on January 31, 2011 to the submission that receives the most votes during the entire Period of Eligibility.
- One (1) weekly prize of a $50 Visa Gift Card will be selected and awarded each Wednesday beginning on December 22, 2010 and continuing through the duration of the Period of Eligibility to the submission that receives the most votes during the course of the preceding seven day period.
- Two (2) Most Creative Shred Awards totaling $600 in Visa Gift Cards be awarded on January 31, 2011 to the two submissions that are deemed to be the most unique, effective and edifying credit card destructions as determined by PerkStreet and The Lending Club.
- At least $125 and up to a maximum of $300 in Editorial Consolation Prizes paid in the form of Visa Gift Cards will be awarded on January 31, 2011 to submissions selected by personal finance bloggers selected by PerkStreet and The Lending Club.
I realize the irony of a Visa Gift Card being distributed as a prize, but it's just that, a gift card, not a credit card.
Free From Broke writer Craig will select one winner to receive a $25 gift card, so make sure when you upload your video, select Freefrombroke.com in the drop-down list for the question “How did you hear about this contest?“ so he knows which videos to look at.
Disclaimer: Don't worry, I'm not paid to write about this. I just thought it was a nifty offer. If you're going to destroy your credit cards to reduce your debts, why not try to get some cash out of it?
As the end of the year approaches, it's time to take advantage of your last chance to claim charitable deductions. Below are some end of the year charitable deduction tips that should keep you out of trouble with the IRS.
Always get a receipt: Always get a receipt for anything you donate. No excuses.
Make sure your receipt has the right information:
If you make a donation of cash (or cash equivalent) you need to make sure your receipt from the charitable organization has:
• The charity name • The date the donation was given • The charity's location • A detailed description of the property donated
What if they don't offer a receipt?
Ask for a receipt anyway. The charity is obligated to give you a receipt if you are donated cash or items to them. The IRS isn't going to buy your "the charity didn't offer me a receipt" excuse. Do your due diligence and make sure the charity provides you with this important validation.
Keep GOOD tax records and receipts
Scan and copy your records for prosperity. Keep your records filed away in a "charitable deductions" folder or file. You want these files to be accessible and importantly, readable, in the event of an audit.
Be Specific with Charitable Deductions
The Tax Court will not be amused if you stretch the truth about what you've donated. Don't be vague and do not self-assign estimates of the value of items you donate. It's especially important to estimate the proper value of items donated if they're worth a lot of money.
Always Side with Caution
The bottom line: be honest and keep your receipts to avoid IRS issues. If you exaggerate or bend the truth, the IRS will find out. Err on the side of caution and you can prevent big trouble from small mistakes when it comes to charitable deductions.
[Run your mouse over the green bars above for detailed information the wealthiest Americans...ever.]
The informative graphic above provides a detailed look at the billionaire entrepreneurs who shaped this nation into what it is today. Whether that's a good thing or not is subjective, but it's still inspiring to see these men succeed against the odds and achieve the American Dream. (And become filthy rich bastards along the way!)
The Top 5 Wealthiest Americans...Ever
These blasts from the past make Bill Gate's billions look like chump change. For visual reference, he's worth $55 billion. Chump change compared to these old pros.
