16 Oct The Story of Stephen Baldwin’s Tax Troubles and How He Avoided Jail
Stephen Baldwin is a member of the famous Baldwin family – the one from which you can rarely remember all the brothers! Let’s see, there’s Alec, Stephen obviously, then David or something…
However, the brothers are not at issue today. In this article, we will be looking at Stephen and his exciting tax evasion story. Luckily for him, he seems to have come out ahead, not counting all the money it cost him! Being a celebrity apparently won’t keep you safe from the IRS. You may not know much about the story, so let’s take a look.
Previous Money Issues
His big tax evasion story is not the only trouble he had with money. In 2009, he and his wife defaulted on more than $800,000 in mortgage payments for their 1.4-acre house.
Quickly afterward, the couple filed for bankruptcy as they were over $2 million in debt. The Usual Suspects actor owed more than a million dollars on two mortgages, and a similar amount in taxes. He also had credit card debt.
As time went by, he recuperated, but his money troubles were far from over. They escalated into tax evasion and an arrest.
Stephen Baldwin was arrested back in 2012 on tax evasion charges. He was charged for not paying taxes on his income from 2008 to 2010. At that point, it was estimated that he owed $350,000, which included taxes and penalties.
Naturally, Stephen pleaded not guilty and was subsequently released. However, it was stated that he would be sentenced to four years in prison if the authorities were to prove their case against him.
Stephen claimed that he never broke the law, and his older brother Alec defended him in public as well. What’s more, Stephen also claimed that he had already paid $100,000 to show that he was working on resolving this issue.
Pleading Guilty to the Charges
It seemed that Stephen was not guilty at first, at least that’s what he and his family stated.
However, a few months later in 2013, he ended up pleading guilty to the charges. He told the public that he was sorry for what happened, but that he received bad advice from his lawyers and accountants.
In all honesty, this is the usual story celebrities give when they are caught for tax evasion. It might be an excuse, or it could be the truth. Either way, we will probably never know. What we do know is that the authorities decided to reduce the amount he had to pay to $300,000. The court also ordered him to pay the amount within the year, or he would end up being sentenced to five years’ probation with five years to pay the remaining amount. No jail was mentioned.
He managed to pay off the money in time to avoid punishment and avoid having a criminal record of tax evasion. Also, he was lucky to avoid any jail time. The money he owed wasn’t a small sum, but he probably felt fortunate that he only had to pay and not serve time!
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