
It was reported in 2009 that Whitaker owed $1.29 million in state and federal taxes. Whitaker is not the only Hollywood megastar to have tax problems. Actor Wesley Snipes is in prison until 2013 after being charged with failing to file tax returns for three years.
Chris Tucker was hit with some very serious tax problems himself, as the L.A. County Records Office showed that Tucker owed over $11 million in taxes up through 2006. Actor Nicolas Cage was also found to owe millions to the IRS.
The strength and scope of the IRS is nothing to play with, and some would argue that the state has too much power when it comes to wreaking havoc on the lives of its citizens. The truth is that the power is only going to grow as the federal government finds its coffers to be more and more financially strained over time. Celebrities can have the worst of tax problems because they've got the most money to play with. They are also the ones the feds are the most likely to come after if something goes wrong.
Tax expert Roni Deutch offers celebrities some quick advice on how to avoid serious tax problems:
1) Don't put all of your trust in your accountant. If something isn't done correctly, it's still your responsibility.
2) Make sure you review and sign all of your own tax documents.
3) Don't ignore tax problems if they arise. Dealing with the problem early can help you to avoid penalties and interest, which can double the original tax bill. Also, if a lien is filed, it becomes public record, allowing the media to dig into your personal life.
All that glitters isn't gold. The life of a celebrity may seem glamorous, and to some extent, it actually is. But in most cases, no matter how amazing things look on the outside, there's always a more complex story being told behind the walls of the celebrity castle.
Dr. Boyce Watkins is the founder of the Your Black World Coalition. To have Dr. Boyce commentary delivered to your e-mail, please click here. To follow Dr. Boyce on Facebook, please click here. 
Comments: (14)
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By: Focus on 3/23/2011 10:26AM
I think many of those celebrities make so much money that they just want someone else to "handle" it. Oprah is heavily audited every year but so far no problems. As Bill Cosby told her early on, "sign every check yourself." These celebs need to ask around and hire competent people.
Iyanla said she hired a CPA but should've hired an entertainment CPA and would've avoided all the problems she had with her money.
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By: SAY WHAT! on 3/24/2011 7:29PM
What?!!!
Was he makin' all those movies for free?!!!
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By: QUITE FRANKLY on 3/26/2011 4:46PM
The reason he may being having problems, is
standing next to him. A fine, much younger yellow
b...h? Yeah right? Now is a guy suppose to keep it
together when she is buying several pair of 3000
dollar shoes, a new rolls royce every year, he has
to buy a new 50,000 square foot mansion every 3 to
5 years, and she is give lots of his money to all
her family and friends?
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By: Thaddeus on 3/23/2011 10:40AM
I don't make much money, but I'd be scared to death not to file income taxes. Shit, even if you can't pay them, at least file. They will work something out with you. Who is advising these idiots. If you're making millions, you can afford someone to watch your ass.
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By: Eugene on 3/23/2011 7:16PM
Thaddeus you are correct. The I.R.S. offers an installment plan and as a last resort an Offer in Compromise.
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By: Vern on 3/23/2011 12:02PM
Why don't these folks pay their darn taxes!!? I am so tired of hearing this mess!!!
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By: Justifyed on 3/23/2011 10:52AM
Hmmm, wondering why Nicolas Cage didn't do any jail time? #Imjustsaying.
@ Thaddeus, OK? I have to file, I am too cute to be in jail! Thank GOD I've never had to pay, but if I did have to, and worked out a pymt plan, I'd work two jobs!!
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By: Butterfly on 3/23/2011 11:11AM
At what point is this being just arrogant. How many celebrities have been caught not paying taxes? It is time to sit down with your accountant and say, LEt's make sure MY TAXES are squared away by a certain date. How can you be acting (working) and not realize the legal ramifications. Plus how many of your celebrity friends go there and get caught?!
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By: Steeler1 on 3/23/2011 11:45AM
Wow wee, I Rellie' Scared = IRS, this AGENCY has to much POWER!!!
If a PERSON is making MILLIONS of DOLLARS they should pay there TAXES, but are we to PAY TAXES on the DOUBLE TAXES in which we are UNDER, FEDERAL, STATE, DOUBLE JEPORDAY!!! HMMMmmmm!!!
The 15th is just around the CORNER!!!
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By: Zann on 3/23/2011 7:14PM
Nic Cage didnt go to jail because he cooperated with the IRS and started unloading his properties to settle his bill. Had he been defiant and taken the issue to trial and generally created a three ring circus like Wesley Snipes did, he no doubt would have gone to jail as well. I hated that happened to Wesley, but he brought it on himself.
That being said, celebrities do have to pay a hell of a lot; I feel for them, seeing that massive amount of money flowing out.
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