The only people Hollywood stars hate more than movie critics are IRS agents! George Harrison even hated the tax collector so much he wrote a song about it!!!!
As you rush off to the post office to beat the April 15 deadline (and write that check out to the Department of Treasury, because anyone who had a refund coming already filed), consider these 5 to have some of the biggest tax woes in Hollywood history.
Some brought the troubles onto themselves, while others were victims of circumstance and employees who didn't do their jobs correctly.
5. Judy GarlandThe Background - Judy Garland was the Lindsay Lohan of your grandparents' generation (but she had more talent). Almost everyone has seen her in The Wizard of Oz, but Garland was a massive star with such hits as Meet Me In St. Louis, Easter Parade and A Star Is Born.
However, Garland was tormented by stupid Hollywood studio execs who told her she was ugly and overweight. She became addicted to prescription pills to control her weight and increase her productivity. The drugs took their toll as she married five times, was dumped by MGM and tried to commit suicide more than once.
The Problem - Garland's big comeback vehicle was A Star Is Born, a 1954 film that brought her critical acclaim, but didn't bring her as much financial return as hoped for. The film originally ran almost three hours long, but was considered to be one of the greatest of the day, and Garland was nominated for an Academy Award.
However, the film was chopped to a shorter length, so theater owners could run the movie 5 or 6 times in a day, instead of 3, which removed some key dramatic moments and songs. The movie flopped, and Garland, who owed a few hundred thousand in taxes, after failing to file in 1951 and 1952, found herself falling further behind.
The IRS Comes Calling - In 1962, CBS signed Garland to a massive deal to host her own TV show, The Judy Garland Show. She never wanted to do TV, but Garland needed the money. Of course, the show was canceled after one year and she was left owing even more to the IRS.
By 1964, the amount she owed the IRS ballooned to $4 Million and they seized her home. Garland bounced from rented homes to hotels and back, then died of a drug overdose in 1969 (possibly intentional).
4. O.J. SimpsonThe Background - It's hard to make a living when you are spending your time looking for the real killers.
The Problem - After famously being acquitted of murder, O.J. Simpson lost a civil suit filed by the parents of Ronald Goldman in 1997 and was ordered to pay $33.7 Million. However, state law prevents any money from his NFL pension to be seized to cover the debt, and Simpson claimed he never made any other income. The state of California disagreed.
The IRS Comes Calling - In this case, it's not the IRS, but the California Franchise Tax Board that filed a $1.44 Million tax lien against Simpson for taxes owed. It has been reported Simpson was making income from autograph and memorabilia sales, which Simpson denied. Then, his lawyer claimed he was a resident of Florida, even though some of the tax issues date back to 1996, when he lived in California. Worst of all, Florida law bars creditors from seizing his home to rectify the lien! Now that O.J. is in jail, it's doubtful that money will ever be paid.
3. Nicolas Cage The Background - He's one of the richest men in Hollywood, and he used to buy houses and comic books like I buy pints of Ben & Jerry's Ice Cream.
Cage owned properties in California, Rhode Island, Louisiana, and The Bahamas. He even owned CASTLES in Germany and England, along with a $1.6 Million comic book collection.
Don't even get me started on the cars, like the record purchase of a rare Lamborghini in 1997. But, you know what they say. If you have got it, flaunt it. And, Cage is entitled to spend his money any way he wants, as long as he doesn't break the law. Oh yeah. About that ...
The Problem - In 2001, Cage hired Samuel J. Levin to oversee his financial investments, planning and management, and Mr. Levin didn't quite keep his eyes on the prize, according to a lawsuit filed by Cage. In the suit, the movie star claims Levin took millions in fees to manage Cage's financial life, but didn't take care of business, leaving him with catastrophic losses, and unpaid bills.
The IRS Comes Calling - It also looks like Levin, allegedly, didn't take care of Cage's tax filings either, and the IRS has charged the star with failing to pay $14.7 Million. To his credit, Cage is making good on what he owes.
He has been selling private possessions and property at massive losses due to the economic climate, but Cage is paying the bill (and I have a feeling he is getting ready to exact a painful revenge on Levin once the case is heard in court). Hopefully, the IRS will take some pity on the guy before he is forced to make Ghost Rider 2. No one deserves that kind of agony, actor nor audience.
2. Randy QuaidThe Background - Randy Quaid has been known for playing goofy characters in his career, but one has to wonder if he and his wife have gone completely insane over the past few years.
It started in the fall of 2007, when Quaid was in Seattle working on a stage production of Lone Star Love. Everyone involved was hoping the show would make its way to Broadway, but Quaid was so out of hand THE ENTIRE CAST filed grievances against him with the Actors' Equity Association (a theater union) when the show was halted.
Allegedly, Quaid was acting so weird, he threatened to have an actor fired if he looked Quaid directly in the eyes, the star hit one actor in the back of the head several times during a performance, and he was accused of making many inappropriate comments to a female member of the cast. It was very easy for Actors Equity to fine Quaid over $81,000 and BAN HIM FOR LIFE, especially after his wife, Evi, (allegedly) attacked the Equity's 76-year old receptionist during the hearing.
In September of 2009, the Quaids were arrested in Texas for (allegedly) staying at a hotel, running up a bill of about $1000, and leaving without paying. They claim they paid, but missed court dates when the charges were brought up before a judge. Additionally, it is alleged they have stayed at hotels in LA and Santa Barbara, and dashed when it was time to pay the bill.
As all of this was happening, Evi Quaid sent explicit and strange photos of herself and Randy to a Seattle newspaper. Yep, she was naked. Yep, they are on the Internet.
The Problem - When you (allegedly) are running out on hotel bills, you probably are having difficulty paying other bills, like your tax bill.
The IRS Comes Calling - Known for being delinquent on many payments, the IRS filed tax liens in the amount of $1.16 Million against Quaid. He's out on bail for the hotel problems, and one has to wonder what might happen next. I just hope his wife keeps her clothes on.
1. Wesley SnipesThe Background - Some will argue Willie Nelson should be on the list and take the top spot, but Wesley Snipes MIGHT GO TO JAIL!!!!
The Problem - Many of you know Snipes has tax issues, but the charges and story behind it all is fascinating. Snipes was charged with willfully failing to file tax returns from 1999 - 2004, and falsely filing amended tax returns calling for refunds of $4 Million in 1996 and $7.3 Million in 1997. Now, here is where it gets ugly.
The government wasn't just upset with failing to file. They charged Snipes intentionally was using accountants known for filing false returns to obtain fraudulent refunds, and tried to obtain refunds using what is referred to as the 861 Argument, which is used by tax protesters to argue that certain income is not taxable (the IRS and the law do not agree, so don't try it).
Then, they got VERY angry and accused Snipes of filing three Bills of Exchange totaling $14 Million with his payment vouchers in 200, 2001 and 2002. What's a Bill of Exchange? As far as I can tell based on my research, it's a phony check that bounces harder than any basketball used on the set of White Men Can't Jump.
At one point, Snipes went as far to argue he is a non-resident alien working in the US, even though he is a US citizen born in Florida. Yikes!
The IRS Comes Calling - Snipes and two conspirators went to trial in February 2008, and Snipes was found guilty on three counts of willfully failing to file Federal income tax returns. All three counts are misdemeanors. While the lawyer for Snipes called for leniency, prosecutors wanted to make an example of Snipes and called for harsh penalties.
In April 2008, Snipes was sentenced to three years in prison, but, in a move I have never heard of, was allowed to remain free while the case is on appeal.
