Royal Tax Evasion: Prince Owes More Than $500,000 In Back Taxes

Prince owes more than $500,000 in back taxes, interest and fines on a dozen properties, including $221,891.88 on Paisley Park Studios in Chanhassen, where the Minneapolis-born rock and film star also has a home. Prince is among dozens of other delinquent property taxes owed by property owners in the county who owe taxes due in 2009 and had their names and property information published in the Chaska Herald last week. Officials in the star’s hometown of Minneapolis, Minnesota claim Prince and his PRN Music Corp. owe more than $500,000 in taxes, fines and interest relating to the singer’s properties in the area. Prince has until May to pay up before officials take the matter to court.

The Royal Tax Evasion of Prince

The Royal Tax Evasion of Prince

No other property owner listed in the paper comes close to what the county says Prince owes in back property taxes to the Franchise Tax Board and the IRS. Prince’s home and other properties establish him as one of the largest property owners in the county; making the taxes he owes the city a significant amount. Asked to comment about the delinquencies, a Prince representative said the Purple One preferred to remain silent on the issue.

County officials also haven’t heard from him about his late payments. As required, the county sent Prince a notification letter on Feb. 15 about the delinquent tax bill. This is not the first time Prince has procrastinated in paying property taxes. He was late in paying on his studio in 2006 and 2008 as well. And he was late in 2008 paying on a 156-acre swath bordering his home.

The Property Tax Bill of Prince

The Property Tax Bill of Prince

Eventually, Prince made good on those bills before the county, as required by law. More renowned as an artist than businessman, Prince has had financial difficulties in the past with paying creditors on time or at all, according to published reports in 1995. But he has yet to have tax problems with the IRS, but those could be right around the corner.

Prince is also being sued in Ireland because he owes almost $3 million (damages accessed) to Dublin concert promoters. Prince canceled his 2008 concert at the last minute, costing the promoters a bundle of money. The Irish High Court Justice, Peter Kelly just made public that Prince owes the money and must make immediate payment arrangements. When Prince was informed by one of his agents that the Irish are pretty upset at him and that he owes them money, Prince reportedly said, “Tell the cat to chill. We will work something out.”

The scandal of Prince owing so much money to a small county in Minnesota and the IRS as well damages his reputation and blackens his name. When such a problem arises in California, the scandal is amplified times ten. As a result, celebrities and high profile individuals should come to the Tax Resolution Institute and receive help from a tax expert before their tax problem becomes a tax crisis.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

Patent Lawyer in Century City Fails To Pay Payroll Taxes and Income Taxes After Million Dollar Settlement

To begin with, the Tax Resolution Institute respects the privacy of our clients. As a result, certain details have been changed and specific information in regards to this piece has been obscured in order to maintain anonymity. A major patent lawyer in Century City found himself in major tax trouble with the Internal revenue Service after winning a huge settlement for a client inventor.

Century City Lawyer in Tax Crisis

Century City Lawyer in Tax Crisis

Since the settlement was delivered at the beginning of the summer, the patent lawyer figured he had plenty of time to cover his income taxes and the unpaid payroll taxes due on his percentage of the settlement. When tax time came around, he realized he could not cover the taxes on account of major cash outlays and a subsequent downturn in the economy. Caught in a bind with his income taxes pending and the 100% Trust Fund Recovery Penalty doubling the amount due in regards to the payroll taxes, the patent lawyer desperately needed help. His huge windfall suddenly had become a horrible nightmare. Luckily, reaching out to the tax experts at the Tax Resolution Institute, he was able to obtain constructive and positive tax relief.

The Tax Bill of a Patent Lawyer

The Tax Bill of a Patent Lawyer

Before we discuss the tax relief provided, let’s take a more in-depth look at some of the details of the case. Working in post-production in the film industry, the client had been directly involved in the invention of certain new special effects technology. When his so-called partners hijacked his stake in the invention, the inventor turned to the patent lawyer in Century City, a commercial and residential district in Los Angeles, California.

Threatened with a lengthy travel, the corporate partners offered a multi-million dollar settlement in exchange for proprietary rights to the technology. Following the advice of the patent lawyer, the inventor took the settlement and walked away a multi-millionaire. For his efforts, the patent lawyer was paid handsomely, receiving a healthy percentage of the settlement.

Since it was still early in the year and major legal deals were in the works, the patent lawyer did not worry about paying his taxes. Since the settlement went directly to his own private corporation, he also was responsible to pay his payroll taxes as well. Rather than make these payments, he invested the money in major home and office renovations. In addition, right before the economy went sour, he made some risky investments that ultimately did not pay off. As a result, when tax time came around, the patent lawyer found himself in a real bind.

No Money for Income Taxes

No Money for Income Taxes

Although lawyers tend to be eagle-eyed when it comes to the intricacies of the law, they often seem a bit blind when it comes to paying their taxes, both from the perspective of income taxes and payroll taxes. When they receive major settlements, they fail to set the money aside to cover their tax bills. Always believing that more money is coming down the pike, they invest and spend without making tax safety and financial security a top priority. As a direct result, they find themselves in terrible financial binds come tax time, and many lawyers come to the tax experts at the Tax Resolution Institute for help.

When the patent lawyer came to the Tax Resolution Institute, we focused on handling the payroll tax problem first. After negotiating with the IRS Revenue Officer, TRI made sure the entire amount owed was paid without the burden of the penalties and the interest. In terms of the income tax, there simply was not enough cash leftover for the patent lawyer to cover that part of his tax bill.

In response, the Tax Resolution Institute negotiated a reasonable Installment Agreement that avoided the burden of tax liens or future asset seizures. Instead, the Patent Lawyer from Century City is paying off his delinquent tax debt and hopefully making sure that lightning does not strike twice. Then again, if the lightning means another huge settlement, he will walk in the fate storm with metal rod in hand. In this case, the lightning implies not making the same mistake twice and making sure all of his future tax bills are well covered.

If you are a lawyer or business owner in Century City and you are having a trouble paying your income taxes or covering the payroll taxes of your company, contact the Tax Resolution Institute. There is a solution if the action is taken and the idea of help from a tax professional is turned into a working reality.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

The Success of Irvine and Payroll Tax Problems

Irvine, California, is quickly becoming one of the most successful and envied cities in America. Located in the heart of Southern California’s “Technology Coast” and Orange County, Irvine is renowned for its dynamic business environment. As a result, in the past ten years, there has been an explosion of new companies of all sizes in Irvine. During the present economic crunch, many of these new companies may be finding it hard to make ends meet. If a new company starts skipping on covering their payroll taxes, it quickly can become a tax nightmare, placing the future of the company in real jeopardy. With tax experts in Irvine and offices across Southern California, the Tax Resolution Institute is designed to help such companies survive and return to their prosperous ways.

The Price of Irvine's Success

The Price of Irvine's Success

Because of its good schools, jobs and housing, Irvine was chosen in 2008 by CNNMoney.com as the fourth best place to live in the United States. In June 2009, the FBI reported that Irvine had the lowest violent crime rate among cities in the United States with populations of more than 100,000. Finally, in August 2008 the Census Bureau ranked Irvine as having the seventh highest median income among cities in the United States with populations of more than 65,000. Irvine is home to a number of corporations, particularly in the technology sector. Irvine is home to many technology coast industrial clusters including medical device manufacturers, bio-medical companies, computer software and hardware companies, and automotive design firms.

Such success comes with a price, and young companies often expand too quickly. When the economy suddenly worsens, a young company often will take from Peter to pay Paul, improperly withholding payroll taxes. The Tax Resolution Institute specializes in bargaining with the IRS to reduce payment terms, extending payments over a manageable timeframe, and making arrangements for business operations to continue once a settlement is arranged that installs a payment structure.

The Demands of Payroll Taxes

The Demands of Payroll Taxes

If you are a company in Irvine with Payroll Tax Problems, you must remember that the IRS has the authority to place a federal tax lien on your company. Your creditors and clients are often either notified of the lien or learn about it through their working networks. As a direct result, your business will suffer, your credit rating will be affected, and your ability to obtain loans and working capital can vanish overnight. Before real trouble strikes, maintain the successful history of the Irvine business community by contacting the Tax Resolution Institute and addressing payroll tax problems.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

Notorious: The IRS Files Three Tax Liens Against Rap Star Faith Evans For A Total of $360,000 in Back Taxes

Faith Evans is the latest celebrity added to the growing list of people with big tax debts and delinquent tax problems with the IRS. The ex-wife of the late rap superstar Christopher “Notorious Big” Wallace and the former first lady of Bad Boy records, Evans is facing a total of $360,000 in back taxes owed to the IRS.

Faith Evan's IRS Tax Debt

Faith Evan's IRS Tax Debt

The delinquent tax debt owed stems from tax liens filed against Evans in Los Angeles, New York and New Jersey. According to The Detroit Press and public records, the IRS filed a $36,360 lien against Faith March 4 in New York. Before that the IRS filed an $119,821 lien against her on Feb. 16 with the Los Angeles County Recorder of Deeds for her home. There is also a previous infraction for $204,000 filed against her by the state of New Jersey on Oct. 30, 2008.

As previously reported, Faith was also named in a million dollar lawsuit for breach of contract in early 2010. Kaushi Entertainment LLC and Dro-Entertainment Inc. filed the lawsuit against Faith and the estate of the late Christopher “Notorious B.I.G.” Wallace for not providing promised footage of the rap legend. The two companies were set to make a documentary on Biggie, but claim the breach of contract put their plans on hold.

However, although that lawsuit is for a greater amount, it is not nearly as serious as the three separate tax liens filed against Faith Evans by the IRS. Since the IRS is the biggest collection agency in the world, they will not stop until the tax liens have been paid. The IRS methods of collection include wage garnishments, asset seizures and bank levies.

Faith Evans Needs Tax Relief

Faith Evans Needs Tax Relief

If Faith Evans had taken action when the first tax lien was filed and contacted a tax professional, her tax crisis could have been averted. The Tax Resolution Institute have helped numerous celebrities, who always remain anonymous to protect their privacy, to resolve major tax problems by negotiating Offers in Compromise and Installment Agreements. Faith Evans needs such help today. If you need tax resolution services, feel free to call the Tax Resolution Institute at 800-401-5926 or fill out our  tax resolution form.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

The California Franchise Tax Board Is Coming After You To Cover $18.9 Billion In Wasted Your Tax Dollars

If you have a tax debt in California, you should be ready to take action. With the state treasury nearly bankrupt, the California Franchise Tax Board has been directed to go after delinquent tax bills. Why is this modern witch-hunt taking place today? The state government of California squandered $18.9 billion over the past 10 years due to government waste, fraud and mismanagement. The $18.9 billion figure comes from a new California Taxpayers’ Association Research Bulletin, “A Decade of Waste, Fraud and Mismanagement,” which is based on the media’s investigative reporting, government audits, court documents and other sources of information.

California Tax Dollars Wasted

California Tax Dollars Wasted

Here are some glaring examples of the extreme waste of your tax dollars in California. The state auditor actually discovered that more than 400 state workers were improperly receiving free parking, costing the taxpayers $2.1 million. The Department of Health Services made $2.5 million worth of incorrect payments to pharmacies. In addition, they also paid $1.2 million more than it should have in Medi-Cal claims for wheelchairs and other medical equipment.

In total, the report includes 127 specific examples – and this is just the tip of the iceberg. There were another 138 cases of waste that cannot be quantified in dollars and cents. As a result, they were not included in the report.

The California state government needs to actively address the bevy of problems pointed out by auditors and investigative reporters. Every penny wasted is a penny of revenue that could be used to pay for education, public safety, improved roads and other government services that taxpayers expect.

Will Arnold Schwarzenegger address these problems by refusing to allow such wasteful spending to continue? Such spending has placed California in the current budget crisis and increased the pressure for higher state taxes. In addition, it has led to the California Franchise Tax Board removing the gloves and going after delinquent tax bills like a Salem witch hunt.

California Franchise Tax Board Witch Hunt

California Franchise Tax Board Witch Hunt

If you have a large delinquent tax bill owed to the state of California, contact the Tax Resolution Institute. It is time to take action today before that dreaded knock comes to your door in the form of a tax lien. Such tax problems with the ruthless collection officers at the California FTB will lead directly to wage garnishments and asset seizures. On account of years of wasteful spending, California is coming after you with a vengeance. Protect yourself and your financial future before it is too late.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

10 Mistakes To Avoid When Doing Your Taxes

With tax right around the corner, the Tax Resolution Institute is happy to provide you with a list of 10 common mistakes to avoid when preparing your taxes. If you owe over $50,000 in taxes this year or a back tax bill and you cannot pay, please contact TRI so we can find a solution for you.

1. Forgetting of not knowing about the “making work pay” credit. This was President Obama’s tax-cutting pledge on the campaign trail. It is now a reality, worth up to $400 per worker. People haven not learned how to claim the credit properly. As a result, it pops up as the most common mistake cited by the IRS this year. (As of April 2, the agency had notified more than 575,000 Americans of this error.) Open up “Schedule M” and grab those savings.

2. Rushing to “get it over with.” If you’re uncertain about a tax issue, it is better to file for an extension than to rush your taxes into the mail with the thought that you can amend it later if it is wrong.

3. Thinking that filing for an extension exempts you from paying. You still have to pay your taxes by April 15 (or you’ll owe a penalty). It is just the tax forms that can wait.

April 15 is Tax Day

April 15 is Tax Day

4. Not attaching W-2 forms. Staple the forms to the front of your return, if you are a wage earner.

5. Not taking the home buyer tax credit. The housing market has been tough. It is even tougher if you bought your first home in 2009 and don’t take advantage of a tax credit worth up to $8,000.

6. Passing up the opportunity for tax-free retirement savings. April 15 is not just tax day; it is also the deadline for making contributions to an IRA (individual retirement account) for 2009. Build that nest egg if you can – and also report those IRA contributions as required by the IRS.

7. Letting your refund go astray. Double-check the routing numbers if you are seeking direct deposit of a tax refund. An incorrect account number or financial institution routing number can cause your refund to be delayed and even deposited into the wrong account.

The Tax Day Mouse Trap

The Tax Day Mouse Trap

8. Not adding enough paperwork with your state income-tax return. Some forms from your federal return may be required as add-ons. If you had capital gains, for example, you may need to enclose the federal Schedule D with your state return.

9. Mixing up where things are deductible. Income from US Treasury securities, such as Treasury bonds, is tax-exempt at the state level, but not at the federal level. Municipal bonds are exempt from federal taxes.

10. Failing to sign and date the return. If you file jointly, both individuals must sign. And if you owe money, remember to enclose payment. (If you pay by check, adding a memo “For Form 1040, tax year 2009″ can help ensure that your payment gets properly credited.)

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

Thomas “Hitman” Hearns Forced to Auction His Personal Property to Pay IRS Tax Debt

Thomas “Hitman” Hearns was forced to auction his personal belongings and memorabilia to help him pay off a $448,000 IRS tax debt. Hearns held WBA, WBC, and IBO titles in multiple divisions between 1980 and 1999. His three-round loss to Marvin Hagler for the middleweight title in 1985 is considered one of the best bouts in boxing history. The tax troubles faced by Hearns are all too common for high profile celebrity athletes and actors on account of the expense of entourages and poor business management.

Thomas Hearns in a Tax Crisis

Thomas Hearns in a Tax Crisis

Although the 51-year-old Hearns said he did not yet know how much last Saturday’s auction had raised, he said it “went well” and people were “very kind” to come out for the event, billed as the “Battle of His Life”. The event at the Auction Block in Detroit featured a 1957 Chevy, three boats, a three-wheeled motorcycle and boxing memorabilia. Obie Moore, the owner of the Auction Block, said the tax authorities from the Internal Revenue Service were on hand and were given the profit from the auction.

“I’m very sad today, but I’m going to fulfill my obligations to the IRS,” said Hearns, 51, the once-skinny kid from the Kronk Gym who helped revive boxing in the Motor City with his devastating second-round TKO over Pipino Cuevas at Joe Louis Arena on Aug. 2, 1980. “Some of my robes were from my fights with Ray Leonard, Roberto Duran and Marvin Hagler. I have to do what I can.”

The Tax Battle of His Life

The Tax Battle of His Life

Hearns signed autographs at $50 a pop and auctioned off several of his ATVs, boats and other vehicles to pay down his debt. A satin robe he wore in the ring went for $1,000 and a terrycloth robe drew a $200 bid. Although Hearns earned $40 million in his boxing career, his vast wealth vanished on account of poor business choices and lavish luxury spending. “He sure had a lot of toys,” Gregory Fields of Farmington Hills said while checking out a small four-wheeled ATV he thought his grandson would love. “He has some nice stuff.”

The Robe of Thomas "Hitman" Hearns

The Robe of Thomas "Hitman" Hearns

What is essential to understand is that individuals with seemingly insurmountable delinquent tax debts do not have to throw up their arms and surrender to the IRS. By contacting a tax professional at the Tax Resolution Institute, a middle ground can be achieved with the negotiation of an Offer in Compromise or an Installment Agreement. In addition, the majority of the interest and the penalties often can be wiped away once a real payment plan is in place.

The business of the IRS as the largest collection agency in the world is to collect the money. As a result, they would have been willing to make a deal and Thomas Hearns could have avoided selling his possessions if he had contacted a tax professional before his tax problem became a tax crisis. It is so important to take action when you have a tax debt and not to ignore the notifications and the phone calls. If you become stuck in fear and worry, your inactivity could lead to the same place where Thomas Hearns ended up: In the battle for your life as you watch your possessions sold.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

Celebrity Chef Gordon Ramsay Is Listed As One Of New York City’s Worst Delinquent Tax Payers

Like celebrity comic Sinbad and singer Dionne Warwick with the California Franchise Tax Board, British celebrity chef Gordon Ramsay has been named one of the city’s worst “delinquent tax payers” by officials in New York. Ramsay’s business empire has suffered in the recent economic downturn. In fact, in 2009, he was advised to file for bankruptcy because of his debt that was spiraling out of control.

The reality star of the hit Fox television show Hell’s Kitchen, managed to stave off the tax man by pumping $8 million of his own money into his businesses. Nevertheless, it seems like a last ditch bid to keep afloat the company afloat that has been hit with a series of bills and legal issues. In fact, his tax problems have become transcontinental and multi-national. Last year. British tax officials ordered the TV star to pay off a series of outstanding debts in relation to two of his restaurants in London.

Tax debts of Gordon Ramsay

Tax debts of Gordon Ramsay

Now tax officials in New York are chasing the chef for over $250,000 of tax debts after he allegedly fell behind with payments. Gordon Ramsay New York, the celebrity chef’s company, has been listed by the New York State Department of Taxation and Finance (DTF) as one of the Big Apple’s top 250 business “delinquent tax payers.” A DTF spokesperson says, “New York loses billions of dollars each year in tax revenues owed, but not collected, known as the tax gap. We aggressively address the tax gap.” A rep for Ramsay’s company responded by admitting, “There is an amount still outstanding to the New York State regarding Sales Tax. We are negotiating through our New York advisors to discharge this debt.”

If you are a successful restaurateur in Southern California and your business has been hit hard in the tough economic climate, there is a good chance that a tax crisis is just around the bend. Before you find yourself in serious trouble with a flood of bad publicity like poor Gordon Ramsay, please contact the Tax Resolution Institute. There are answers to your problems of delinquent payroll taxes and other tax issues. Unlike Gordon Ramsay, do not wait until your company’s future is placed in real jeopardy.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.