All Articles Tagged "IRS"
So Mc Hammer looks to be having money troubles again and this time, the IRS is on his back over taxes from over 15 years ago.
According to TMZ, “Uncle Sam” has filed a lawsuit against Hammer (real name Stanley Burrell) for close to $800,000 in unpaid taxes.
If you can believe it, the lawsuit is based on his unpaid taxes from 1996 and 1997. If memory serves correctly, he’d already had huge financial problems years before the mid-90s, so to be that far in debt with the IRS shows that he still hadn’t really gotten it together.
According the documents leaked to TMZ, the IRS now wants every dollar Hammer makes in order to pay the $798, 033.48 bill. We haven’t heard much from him over the last few years; for years, he’s been trying to make different web based projects work but none have seemingly been overly successful in recent times.
We’re not quite sure what he’ll do to pay the IRS back but make no mistake, they will get their money. Perhaps his team can talk to someone who produces celebrity reality shows and he can get on there to not only make a check, but also to become visible again. Hmmm, Dancing With the Stars, anyone?
So far, no comment from Hammer.
Maybe you’re thinking that you don’t have enough capital or connections to making the world a better place for your children and grandchildren. Think again! In all worthwhile endeavors, one must start small to reap big rewards in the future. If you have ever dreamed of creating your own nonprofit charity or philanthropic foundation, read on for our nine tips to push you on your way.
As we approach the month of November, you’re going to spend your days soon thinking about holiday shopping, decorations, and dinner table place cards. But, don’t forget about your taxes. In fact, it would be best to go ahead and not only start thinking about them, but to begin organizing your paperwork now for early filing.
Because of this year’s government shutdown, the IRS will not begin to process tax returns until one to two weeks after the originally planned January 21st date. If you’e expecting a return and need that money ASAP, you should act in advance. Just because the government is behind schedule does not mean that you should be. Tax season officially starts in December and you will still be able to send your tax returns at any time. Keep ahead of the game and continue to prepare on time — or early — so you’re not pulling your hair out when we’re talking about how close we are to April.
Taxing a dead man? Well, kind of. The Internal Revenue Service is trying to figure out just how much the image of Michael Jackson is worth.
“There’s a big disparity over Jackson’s image, as well as his recording legacy. The late singer’s estate said the taxable value of his image and likeness was $2,105 — while the IRS says it’s more like $434 million. The estate’s stake in Jackson’s recording assets was valued at $469 million by the IRS, but was not even included in a 2009 estate filing,” reports CNBC.
And get this, the IRS claims the Michael Jackson estate owes $702 million in federal taxes, plus penalties, according to charges the agency brought in U.S. Tax Court.
The agency claims the estate has undervalued the late “King of Pop’s” assets, amounts they charge were not disclosed in a court challenge the estate filed in July, as a response to a bill from the IRS.
But according to Alex Raskolnikov, a professor at Columbia Law School, who specializes in tax law, there is no exact formula the IRS uses to determine the value of assets. “When there is an audit and a valuation of substantial assets (over $50,000), they will use a panel of experts,” he told NBCNews.com.
When Jackson died on June 25, 2009, he left his estate to his mother Katherine, his three children and various charities. At the time, his estate was valued at $7 million, for tax purposes. The IRS disagrees. It said that was deficient by $505.1 million, plus penalties of $196.9 million.
A spokesperson for the Jackson estate told Reuters that the IRS figures were “based on speculative and erroneous assumptions unsupported by the facts or law.”
Thus far, the Jackson estate has covered $100 million in taxes.
This is not good news for small business owners. The Internal Revenue Service is cracking down on small firms. Since fall 2012, the IRS has been sending out letters to 20,000 small businesses notifying them of “possible income under-reporting.”
The reason: purchases made with card swipes. The IRS is suspicious that a lot of cash transactions might be going unreported. ”The IRS says it is trying to identify businesses that get ‘an unusually high portion’ of their reported sales through credit card transactions,” reports CNNMoney.
Before issuing a letter, the IRS compares a business’s credit card and cash receipts with industry averages. Which sounds a bit arbitrary.
An unnamed owner of a baking equipment supply company received such a letter, reports CNNMoney. The letter claimed that “80% of her $549,955 in annual revenue came from credit card swipes.”
In response her accountant, Steve Schneider, answered the IRS explaining that the numbers were correct, but the agency’s assumptions were wrong.
“Over the years, the business model has switched to more online sales,” Schneider told CNNMoney. “These types of customers tend to pay with credit cards.” He doesn’t agree with the IRS’s methods. He feels by relying on industry averages, the agency isn’t accounting for how a particular business operates.
“I just don’t think that the data they have is sufficient for them to send these letters out,” Schneider said.
There are other cases as well. But the IRS says it has reason. The agency found that some $450 billion is owed in taxes that goes uncollected. “Under-reporting by small businesses accounts for about $140 billion of that tax gap,” the story reports.
Some accountants say the IRS has always been stricter with small business. “This is nothing new,” Van Ballantyne, a small business accountant in Greenland, New Hampshire, told CNNMoney. “I think it’s another attempt to try to get us all to sit a little straighter in our chairs and be more honest in our reporting. It is fairly innocuous.”
I’m betting Jermaine Dupri can’t wait for Mariah Carey’s new album to come out and surely, he’s praying for major record sales.
Jermaine Dupri is, once again, in trouble with the IRS. This time, Uncle Sam is looking for Dupri his outstanding tax bill that currently stands at about $800,000, according to TMZ.
They say he hasn’t paid his taxes for the years 2008, 2010 and 2011 where the bills were $646.47, $140,889.76 and $657.156.12, respectively.
So far, it looks like he’s in the clear for 2009.
Here’s the thing: this isn’t the first time, or second for that matter, he’s owed big dollars to the IRS. Back in 2009, he paid a $500,000 tax bill he owed the state of Georgia and in January he paid off a $5 million dollar tax lien.
I mean, do rich people (or the supposedly rich) not get embarrassed or ashamed? How many times do you have to be hit – and hit hard, no less – by someone like the IRS before you realize you need to take care of your own business? It doesn’t even matter whether or not they have the money to pay it back; why even get caught up in all those penalty and interest fees? It’s really ridiculous.
So far, no word from JD on this…situation. Hopefully, he can get this rectified.
Lois Lerner, the head of the Internal Revenue Service department that closely scrutinized conservative groups and caused a firestorm in Washington, is still getting her $180,000 salary, despite being put on leave. According to the TODAY show this morning, Lerner is on administrative leave with pay. All the while, there are five investigations into what was going on with her division.
Lerner was put on leave on Thursday, after she took the fifth before a Congressional committee, refusing to incriminate herself when questioned over the scandal. She had been asked to resign, but refused that too. According to The New York Times, Lerner issued an apology for the extra examinations that conservative groups had been subject to back on May 10, but evidence revealed in the days following showed she had known about the practice.
Senators now want to see her cut off from her pay. And Lisa Meyers, reporting for the TODAY show, points out that firing Lerner would be a lengthy process.
Still, there are some who say that the groups that were singled out were political groups that should’ve gotten extra attention. While the screening process should be more neutral, there are some that think enhanced screening to ensure that they’re eligible for the nonprofit status they sought was justified.
And we shouldn’t forget that Lerner has yet to be found guilty of doing anything wrong, though there’s evidence that something screwy was happening.
So should Lois Lerner, or anyone who is put on leave from their job, be cut off from their pay during the ongoing investigation?
“You Are A A**hole”: Kendu Isaacs Goes In On Mary J. Blige Fan Who Blamed Him For Mary’s Tax Troubles
You’ve probably already heard about Mary J. Blige’s current tax woes. As we reported last week, the Queen of Hip-Hop Soul owes the IRS more than $3,000,000, claiming she neglected to pay taxes for three consecutive years: 2009, 2010, and 2011. We haven’t heard from Blige as of yet, but her husband sure has a lot to say. Well, at least on Twitter. When a fan of his wife tried to blame Kendu Isaacs for Mary’s money trouble after Isaacs claimed it was all a lie (Isaacs is reportedly her manager and has been since the early 00s), he fired back, and it got a little ugly:
@Kenduisaacs Go home & raise your kids, Mary needs a professional team. And being quite don’t make anything better.
@iNewYorker get ur own life and live it! My wife & I are fine & u believe that stupid Isht if U want to, because u have nothing else to do.
@Kenduisaacs Who’s gonna lie about an IRS lien? ( @TMZ) I never came for y’all relationship, dummy. You a bad manager. @iNewYorker you are a asshole. You do nothing but sit online and watch others lives and think you know what your talking about.
Clearly this is a very touchy subject for everyone in Mary’s circle. But honestly, I can’t understand how celebrities and the people who manage their finances find themselves going YEARS without giving the IRS their money. Anywho, as for Isaacs, it probably would have been best to ignore the Twitter follower. Isaacs has bigger fish to fry…like figuring out his family is going to pay back the IRS ASAP so that Mary doesn’t end up in a situation like Wesley Snipes or Lauryn Hill…
What do you think of his back and forth with the follower on Twitter?
The IRS is lending a hand to taxpayers affected by the Boston Marathon explosions. The agency announced that Bostonians will get a three-month tax filing extension due to the tragic event.
“Our hearts go out to the people affected by this tragic event,” said acting IRS Commissioner Steven Miller in a press statement (via USA Today). “We want victims and others affected by this terrible tragedy to have the time they need to finish their individual tax returns.”
All individual taxpayers residing in Massachusetts’ Suffolk County, including the city of Boston, will automically receive the extension. This applies to the bombing victims and their families, first responders, and others affected even if they live outside Suffolk County. According to the newspaper, “Eligible taxpayers who live elsewhere may claim the relief by contacting the IRS at 866-562-5227 beginning Tuesday, April 23, and identifying themselves before filing a return or making a payment.”
The extension also applies to those whose tax preparers were affected by the bombing, which took place on the annual April 15 federal tax-filing deadline.
There will be no filing or payment penalties due as long as federal returns are filed and tax payments made by the new deadline of July 15, 2013. “But, by law, interest at the annual rate of 3%, compounded daily, will still apply to any payments made after the April 15 deadline, the IRS said,” reports USA Today.
This is not the first time the IRS has made extensions available following a tragic event. It did the same following Hurricane Katrina in 2006.
Today is April 15th Tax Day. This is an important financial day for most people. But now that you have filed your taxes, what should you do next?
1.) Understand what happened. If you ended up owing taxes, understand why. You obviously did not have enough taxes withheld throughout the year. Plan so that this does not happen again next year. Talk with your tax preparer about this and set up a plan to make sure more taxes are withheld. Also, if you received a big tax refund this year, you should plan better for next year too.
For more on this and other tips for staying organized and keeping your information safe, click through to Black Enterprise.