Friday, July 10, 2015

Celebrity Tax Cheats Just Aren’t Worth the Risk

Most people try to be model taxpayers. Nobody wants those dreaded tax audits, threatening notices, and the bad reputation you earn from them. On the other hand, there are also some who try to cheat their taxes or unknowingly commit errors. Unfortunately for public figures like celebrities, those cheats and errors are usually exposed to the public. Bad outcomes like being billed an obscene amount of money, getting properties seized, and doing prison time also circulate in the media.

The IRS will uncover tax deduction errors.

Some tax cheaters would claim personal expenses as business expenses. An actor previously tried to write off his private jet once, while a couple claimed that their million-dollar dance floor at home were basic and necessary to business.

The IRS will uncover what you omit.

Others will forget to include other sources of income, including prize money from gambling and other games or contests. One reality show winner did so and served jail time for it.

Knowing the consequences, you would realize that tax cheats just aren’t worth the risk. The IRS has been known to be meticulous and tough when it comes to delinquencies. Of course, other times, it could have been an honest mistake on your part or a repercussion caused by others, but you will still be held liable for the debt and the penalties. Be sure to explore your options to resolve the issue with a tax lawyer when that happens.

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