Celebrities Who Failed to Pay Taxes
Nicholas Cage, Burt Reynolds, Helio Castroneves all had run-ins with the IRS.
March 24, 2010 — -- Three things in life are certain, to riff on an old saying: death, taxes – and efforts by some to avoid both.
Americans owe about $290 billion in back taxes, according to the Internal Revenue Service. The number, which dates back to 2001, is the most recent estimate available. It includes not just those who purposefully fudged their taxes, but also those who may have underreported their income by mistake or who are late on payments.
Judging by news in the gossip rags and elsewhere, a good slice of this debt is owed by celebrities.
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"Many times celebrities are the victims of bad advice or incompetency of their tax advisor," says Robert Bernhoft, a lawyer who represents high-profile defendants in disputes with the IRS.
"Because there are fairly large numbers involved, when celebrities get entangled with the IRS it attracts a lot of attention."
With the April 15 tax deadline around the corner, we took a look at some of the most publicized recent celebrity run-ins with the IRS.
Wesley Snipes
Famous for his roles in films ranging from Spike Lee's "White Men Can't Jump" to action thrillers such as "Blade," Snipes was convicted of tax fraud in 2008. Jurors concluded that he failed to file taxes on "unreported" gross income of $13 million earned between 1999 and 2001. He was sentenced to three years in prison, but remains free while he appeals.
Nicolas Cage
As one of Hollywood's best-paid actors, with an Oscar for his starring role in "Leaving Las Vegas," Cage has managed to dig himself a pretty deep hole. Cage has been in trouble with the IRS for several years, after what he claims was mismanagement by a former business advisor.
In January Cage told People.com that he still owes the IRS $14 million. To help pay off his bills, Cage has reportedly sold off a wide range of assets, including a 14,300-square-foot Las Vegas mansion.
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