Another Grammy winner finds herself in tax trouble. This time it’s Mary J. Blige, a taxpayer who is familiar with dealing with the tax woes. As a Forbes article recently pointed out, celebrities will often find themselves with tax problems as a result of their large incomes and their complex lifestyles. Celebrities will find themselves removed from the financial handling of their brand, as advisors and handlers will filter information before bringing it to the celebrity.
Ms. Blige found herself with a New Jersey tax bill of over $901, 000 for back taxes, but this time it is the IRS that is seeking payment. According to TMZ, a lien was filed against Ms. Blige for unpaid income taxes in the years 2009, 2010, and 2011. If the lien information is correct, that leaves the singer with over $3 million dollars owed to the IRS.
If you find yourself with a tax lien, there is some information that you should know. Tax liens are not to be ignored. They can encompass all your property—including property that you acquire after it is filed. Tax liens give the IRS priority over any other creditors that might request payment in the event of unpaid debt.
According to the IRS website, the IRS can only file tax liens after a liability is assessed, the IRS sends a Notice and Demand for Payment saying how much you owe, and you fail to address the issue with payment in 10 days.
If you are seeking to have your IRS lien released, the process usually involves two options in most cases: (1) pay the taxes, interest, and liability; or (2) post a bond guaranteeing payment.
If you find yourself in this position though, it is a good idea to speak to a knowledgeable tax professional.Segal, Cohen & Landis 9100 Wilshire Blvd. Ste. 601E Beverly Hills, CA 90212 (310) 285-3999