Advocate Tax Solutions gives their views on the recent back tax problems of the rich and famous
“If we owed $4.5 million in ’08 then how could we owe this now, unless you’re saying that everybody just went to sleep on this and just gave us a pass, which is ridiculous,” Sharpton said in the CNN article.
This week Civil Rights Leader Al Sharpton blasted the extensive New York Times Report saying he owed $4.5 million in back taxes. Sharpton argued that it wasn’t possible for him to owe that much. “The MSNBC host said in a press conference Wednesday that the $4.5 million was the original figure he was ordered to pay back in 2008, but that he has been making regular payments since then and the amount is now less,” reports CNN.
“If we owed $4.5 million in ’08 then how could we owe this now, unless you’re saying that everybody just went to sleep on this and just gave us a pass, which is ridiculous,” Sharpton said in the CNN article.
The Times articles describes poor planning, with Mr. Sharpton’s entities paying for and owning everything. This could include his personal items. If Sharpton is trying to merge personal and business expenses he is not adhering to the fundamental tax law that separates them. While you can write off many things with a dual motive, your tax life will be easier if you avoid them and keep records.
The IRS keeps good records and so should you. Keeping records will help you in a tax dispute and can help you keep out of tax trouble. The IRS audits may reject your tax deductions unless you have records to validate them.
Despite the great amount Mr. Sharpton owes in tax liens, he is not alone in his problems and went through the same process as everyone with back tax problems. The process starts with notices. The IRS can only file a Notice of Federal Tax Lien after the IRS assesses the liability and sends a Notice and Demand for Payment, which states how much you owe. The IRS automatically has a tax lien if you don’t send the full payment within 10 days.
An IRS tax lien covers all of your property before and after the lien filing. IRS tax liens last 10 years, but it is better to remove them immediately. This involves paying the tax, interests, and penalties; or posting a bond guaranteeing payment.
Mr. Sharpton says he has been compliant to this process and is doing his best to pay his back taxes. The IRS still has not revealed how much Mr. Sharpton owes and Sharpton believes his name is being dragged through IRS-ruin because of politics. He told Business Insider the negative story by the New York Times comes just as a grand jury is about to release its findings in the shooting of Michael Brown by a white Ferguson, Mo., police officer.
“Every time there’s a Sean Bell or a Ferguson or a Trayvon Martin, we go through my taxes. It’s the same agreement y’all. It’s the same thing we announced in ’09. It is the same thing we’ve been paying every month,” he said.
That could be possible, but either way it is evident that the best way to get out of IRS debt is to keep records and be compliant and active with your payment agreement. Millions of American’s owe back taxes, and we hope Rev. Sharpton found the representation he needed to resolve his back tax debt. However, if we were his accountants he probably wouldn’t have had this problem in the first place! Tax per return is usually the result of either not making estimated tax payments or improperly filing your return. Al Sharpton, we are available if you are seeking new representation!
Do you owe over $10, 000 in back taxes? Call us today@: (888)737-0200
or visit www.AdvocateTaxSolutions.com to learn more about back tax resolutions and IRS debt help.
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