Roni Deutch Explains How The Hollywood Elite Can Avoid Surprise Tax Bills

After working with Survivor: Borneo winner Richard Hatch in my new documentary "Death Or Taxes," I have put together a few simple tips for rich and famous celebrities to stay out of trouble with the IRS. No one, not even actors, musicians, or reality stars are exempt from paying taxes.



Britney Spears's ex-husband, Kevin Federline, is just the latest in a string of celebrities to be hit with a back tax bill. Nicolas Cage, Chris Tucker, Wesley Snipes, and too many others were subject to mass amounts of negative publicity because of unpaid taxes. There are ways for even the rich and famous to avoid the embarrassment that comes with IRS troubles.



Avoiding a back tax bill really is not that complicated, especially when you are rich and famous. In producing the documentary ‘Death Or Taxes’ my team and I had the opportunity to work with season one winner of Survivor: Borneo Richard Hatch, one of the most infamous reality TV personalities to feel the wrath of the IRS. His troubles with the IRS resulted in him serving over four years in federal prison. Our tax laws are complicated, and if you don’t watch out, it is entirely too easy to end up in hot water. Anyone, even the Hollywood elite, should follow a few basic rules to decrease the likelihood of being surprised by a tax bill.



Here are my suggestions:



Do not place total trust in your accountant. Every taxpayer is ultimately responsible for paying their own taxes. Make sure you know what your accountant is reporting on your tax returns, and make sure every deduction or credit listed on your returns is permitted given your situation.



Review your tax return it before you sign it! Once you sign your tax return, you are fully responsible for every item on that return. Remember, the IRS will not come after your accountant to collect unpaid taxes, they will come after you. You might even consider having your tax returns reviewed by more than one tax professional to ensure that your tax obligations are met.



Do not ignore tax issues when they arise. The sooner you deal with your tax problems, the easier and cheaper it will be. Penalties and interest can quickly double and triple your original tax bill. In addition, if you wait until liens are filed, those liens are public record, and will be uncovered quickly by the press. If you do not want to hear or read about your tax bills in the news, handle them immediately.



The Tax Lady Roni Deutch and her law firm Roni Deutch, A Professional Tax Corporation have been helping taxpayers across the nation find IRS tax relief for over seventeen years. The firm also recently began offering bankruptcy filing representation to residents to Northern California.