03 Nov Keeping Up with Khloe Kardashian’s Tax Troubles
At only 37 years old, media personality and socialite Khloe Kardashian has a reported net worth of $50 million. Famous for starring in the reality TV series, Keeping Up with the Kardashians and its spin-off series, Khloe has been a public personality for over a decade. Apart from television, Khloe is also involved in retail and fashion, launching fragrances and apparel. She’s even released a book.
However, since Khloe rose to fame, she’s been involved in several legal disputes, including an arrest for drunk driving. Having violated her probation, Khloe was to serve a 30-day jail sentence and attend a 3-week alcohol treatment program. However, she was released a mere three hours after the arrest due to overcrowding and never served time. Other legal issues that Khloe faced over the years include a class-action lawsuit and an allegation that she and her sisters, Kourtney and Kim, had committed deceptive marketing.
Hit with a Tax Lien
Just three years after her rise to fame in 2007, the State of California hit Khloe with a tax lien for unpaid back taxes, collection fees, and penalties. Khloe quickly resolved her tax issues, claiming that she had paid the lien ages ago, but her accountant never filed it.
Khloe isn’t the only member of her famous family that has faced tax problems. Just recently, her sister, Kylie Jenner, was hit with allegations that she had forged her tax returns. Interestingly, Kylie allegedly forged her tax returns not to avoid paying taxes but to prove that she had reached billionaire status. And Khloe’s sister, Kim, was also under fire recently for allegedly withholding taxes from her staff’s wages.
To date, Khloe has not been accused of any more tax-related wrongdoings. However, recently, Khloe and her sister Kim made the news for winning a $13.5 million lawsuit, ending a 5-year legal battle. The lawsuit resulted from $11.5 million in royalties owed by a beauty company that had licensed their beauty line. And when they were shorted millions, the Kardashian sisters sued.
What’s interesting is that because the lawsuit was due to a royalty dispute, the IRS came to collect after the ruling. This is because royalties from copyrights, such as the Kardashian case, are taxable as ordinary income.
The Lessons Learned from Khloe Kardashian
The tax lien that Khloe Kardashian was hit with amounted to $18,490.74, a mere fraction of what Khloe is worth today. However comparatively small her tax troubles were, it has still impacted her reputation, and Khloe’s name continues to be added to the list of other celebrities who have faced tax issues.
As a taxpayer, it is your responsibility to ensure your tax liabilities are being paid. Many celebrities who have been investigated by the IRS or slapped with tax liens often go on to deny the charges and claim that their manager or accountant was at fault. Ultimately, it is still up to you as the taxpayer whose name is on the tax accounts to be responsible for your tax liabilities.
At Golden Tax Relief, we know how tax liabilities can escalate. We know the workings of the tax system and can help you resolve the tax problems you may be facing. If you’ve been hit with a tax lien or are worried that your tax liabilities will catch up to you, click here to request a consultation or call 844 229 8936.