10 Jul Top 5 Reasons Why Celebrities End Up in Trouble with the IRS
We all know that many celebrities have had tax problems in the past and have gotten in trouble with the IRS. Each of these stories has always been very interesting to us ordinary folk that we can’t miss reading up on it.
We post some compelling cases of celebrities getting in trouble with the IRS, and you can read these stories on our blog; we have several!
However, we’ve never discussed why these things happen! You’d be surprised at the limited number of reasons behind most of these cases where celebrities try to cheat on the IRS.
Let’s take a look at the top five!
1. It’s the IRS Itself That’s Looking to Create the Trouble
Oh that IRS! So often do they put their noses wherever they can. That’s especially true with celebrities that lead some lavish lifestyles, which tend to attract the attention of many curious eyes.
The IRS will always look to investigate these types of celebrities because it often happens that they turn up being right in their assumptions.
2. It’s the Advisor’s Fault!
Most celebrities are wealthy enough that they don’t have to worry about their finances, so they hire a professional to do it and leave it all up to them. However, many of these celebrities make the mistake of trusting the wrong professionals, and then they end up stealing from them or even worse, doing a terrible job which results in stars ending up in a lot of trouble with the law!
The most famous cases are those of Nicolas Cage and Wesley Snipes.
3. It’s Not Automatic as It Is with the Rest of Us
One significant similarity between celebrities, business owners, and entrepreneurs, is the fact that their taxes are not automatically deducted with each paycheck – because they don’t get paychecks as we do.
They get much larger amounts (which on its own is a reason why they end up in trouble as you’ll soon see) or get them irregularly and in varying amounts, all of which means that they have to calculate all the taxes on their own and can easily make mistakes. Or they might try to make a ‘mistake’ intentionally!
4. It’s the Fault of Irregular Paychecks
Celebrities are just like us – they don’t know how to handle vast amounts of money that come to them suddenly. The only difference between them and us is the fact that we rarely get any such sizeable paychecks!
However, the fact still remains – they often don’t know how to handle those vast amounts of money, and they end up doing something wrong. It usually results in the trouble eventually passing because IRS still knows how to forgive from time to time.
5. It’s the System’s Fault!
This might sound like a conspiracy theory, but it’s in fact, very true. The system has essentially been made to work against high-income earners. This kind of makes sense because they earn much more money, so they can afford to pay more taxes than we mortals can.
Unlike celebrities, we usually ‘fly under the radar’ of the IRS. However, sometimes we do get noticed if something is not right, so we end up having trouble with the IRS! Maybe you can’t hire some fancy lawyer like wealthy celebrities, but you can certainly hire us to help you. Contact us to find out more about how!