As this year?s tax season comes to an end, there are still a large number of celebrities that reportedly owe a considerable amount to the Internal Revenue Service (IRS). In 2007, the IRS formed the Issue Management Team (IMT) and its goal is to get unpaid tax money from athletes and entertainers in the United States, and foreigners who come to tour the country.
The rapper 50 Cent posted on his website, ThisIs50.com, a short warning to all entertainers, informing them of this new legislation being passed and asking viewers to Google information on the Moving Ahead for Progress in the 21st Century Act (MAP-21).
Laws regarding IRS debt are getting strict and Senator Barbara Boxer?s (D-Cali) Moving Ahead for Progress in the 21st Century Act (MAP-21) is headed to the House after it cleared the Senate last month. Boxer?s bill allows the federal government to revoke the passports of citizens who the IRS claims owe taxes.
According to AllHipHop.com, many celebrities fell victim to the IRS since 2007. For example, Rapper Ja Rule who owed a little over one million is now serving two years in jail, while Actor Wesley Snipes who owed $17 million is currently serving three years in jail.?
?A few years ago, they concluded that athlete and entertainer taxes might be escaping their radar. So they reinstated a division to only deal with this area,? said Bill Zysblat of the global touring/accounting company RZO Productions in an article on myhiphop.com.
Some people may not know that the taxes citizens pay provide income for federal, local, and state governments to fund essential services, such as highways, police, and hospitals which benefit all citizens, who could not provide such services for themselves.
The IRS reports that taxes also fund programs and services such as health, welfare, and social services; job training; schools, and parks.
Based on public records, there are numerous entertainers and business executives who have had to report to the IRS in the past year alone.
If their financial problems aren?t fixed soon, their traveling rights may be revoked, which will make it even harder to repay their debt.? ?Take personal responsibility for your own tax returns because in the end, you will be the one who is liable if there are problems,? said Brian Reed, a Huffington Post reporter.
Read more at BackTaxesHelp.com