Celebrity Tax Troubles: Scandals & Stories of Famous Tax Evasion

When actor Wesley Snipes and stand-up comedian Sinbad were accused of owing millions in overdue taxes, they became some of the most high-profile celebrities in recent years to run afoul of the Internal Revenue Service.

But Snipes and Sinbad are hardly alone. There is actually a long history of actors, singers, athletes, entertainers and celebrities of all kinds getting chased by the tax man.

Here is a list of some high-rollers currently making news for having major tax headaches – along with a few celebrities from the past who have also endured tax troubles.

Actor Red Foxx
His parents named him John Elroy Sanford, but most of us knew him by his stage name: Redd Foxx. He was also famous for playing the lead role in the 1970s hit sitcom "Sanford and Son." In his later life, though, Foxx battled the IRS and even saw his Las Vegas home, furniture and household belongings seized by IRS agents in 1989 because of unpaid debts. When Foxx died of a heart attack in 1991 he still owed the IRS, which had been after him for $755,000 in back taxes.

Singer Otis Williams
We all remember The Temptations, right? Well, Williams was the tenor who co-founded this famous Motown group. He's also the last surviving member of the original group. It's a shame that after 50-plus years of having his records heard all over the world, Williams presently owes the IRS an estimated $176,000.

Singer Martha Reeves
Here's another big name from the Motown era. Martha and the Vandellas certainly made a name for themselves back in the day, especially with the hit song "Nowhere to Run." Sadly, it looks like Reeves couldn't outrun her tax issues either. She was a Detroit City Councilwoman from 2005 to 2009. But that hasn't stopped her from currently being in tax debt to the tune of about $280,000.


Rapper Flavor Flav
What time is it?! For this rapper-turned-actor, it's apparent time to pay the piper. Despite his renewed popularity on several VH1 reality television series, Flavor Flav still apparently has to get his money right. He's being chased to fork over $183,000 in past due taxes.

Comedian Eddie Griffin
The State of California came after this famous funnyman, claiming he owes roughly $142,000 in back taxes. At least Griffin is keeping his sense of humor. You may remember that he actually did a VH1 series, appropriately called "Going for Broke."

Boxer Evander Holyfield
The one-time heavyweight boxing champ reportedly owes the IRS more than $145,000 in back taxes for several years dating back to 2000. Additionally, the "Real Deal" Holyfield was slapped in 2009 with a tax lien against his home in Fayetteville, GA.

Actor/Comedian David Alan Grier
He's awfully funny. But his awful tax problems are no laughing matter. Best known for his work on "In Living Color," Grier is said to owe $50,000 in back taxes.

Singer Tony Braxton
Braxton has filed for bankruptcy in the past and weathered her share of financial woes. The songstress makes this list, however, for failing to pony up $79,000 in taxes owed to Uncle Sam.

Gospel Singer BeBe Winans
He's a brother to CeCe, and best known for being part of the famous and talented Winans family. Success seems to have come at a price, however: in this case, a $1.2 million price tag in terms of taxes owed.

Author Terry McMillan
We all read the book. Then we saw the movie. I'm talking, of course, about "Waiting to Exhale," the popular novel that was transformed into a big screen hit. In fact, two other McMillan books were also made into movies, including "How Stella Got Her Groove Back." Despite all her success, McMillian is said to owe $253,446 in back taxes. With another movie "Getting to Happy" due out in late 2010, here's hoping McMillan herself gets her groove back – financially, that is – along with all the rest of the people mentioned above.

This list, of course, if just the tip of the iceberg when it comes to celebrities and their tax issues. And needless to say, African American celebrities are far from alone in facing financial woes. Ten other well-known names with tax problems include:

• Olympic swimmer Michael Phelps: $23,000 owed
• Hockey star Darren McCarty: $62,000 owed
• Model Gisele Bundchen: $72,000 owed
• Actress Zsa Zsa Gabor: $118,000 owed
• Actor Burt Reynolds: $225,000 owed
• Actor Stephen Baldwin: $1,084,000 owed
• Photographer Annie Liebovitz: $1,500,000 owed
• Actress Pamela Anderson: $1,952,000 owed
• Golfer Jim Thorpe: $5,400,000 owed
• Actor Nicolas Cage: $6,250,000 owed

And you thought you had money problems.



Lynnette Khalfani-Cox, an award-winning financial news journalist and former Wall Street Journal reporter for CNBC, has also been featured in top newspapers including the Washington Post, USA Today, and the New York Times, as well as magazines ranging from Essence and Redbook to Black Enterprise and Smart Money.

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