IRS Problems: They Can Happen to Anyone
Over my years in this business, I’ve observed an interesting phenomenon: most taxpayers view IRS problems as something that could never happen to them. They often think that getting into IRS trouble requires dishonesty or incompetence.
Nothing could be farther from the truth. The reality is that a simple oversight or honest misunderstanding can be enough to trigger an IRS nightmare. And it can happen to anyone—rich, poor, or middle class. As if to reinforce this point, celebrity singer R. Kelly has been in the news recently for his personal tax issues. Complex.com reports:
R.Kelly’s tax problems keep getting worse. Last June, we found out that he owed about $4.8 million to the IRS in back taxes from 2005 to 2010. Now, his tax bill has increased to another one million.
TMZ reports that documents filed in Illinois show that the R&B singer owes the IRS $1,379,695.11 in unpaid taxes for 2011. Adding his already owed amount of $4,848,072.71, the grand total is over 6 million to the IRS.
Here’s what a rep told TMZ: “He takes this very seriously and is already communicating with the IRS about the payment process to quickly resolve the issue.”
Now, R. Kelly is FAR from the only celebrity to run afoul of the IRS. At first glance, most people consider it outrageous that any celebrity would get into tax trouble. After all, they have more than enough money to pay their tax bill, right? Maybe so—but given the complexity of today’s tax code, it’s incredibly easy to make a mistake. And once that happens, and penalties and interest begin to accrue, it becomes a vicious cycle that results in an impossibly large bill from the IRS.
So here’s the point: if you’re currently free of any IRS problems, consider yourself fortunate. Continue to work with trusted professionals to prepare your tax returns each year so that you stay out of trouble. On the other hand, if you’re in the midst of a dispute, don’t despair! I’ve personally worked with many taxpayers and business owners just like you to resolve their IRS disputes. Contact us today to learn more!