Income tax debt relief: Introduction
As 2018 draws to a close, I want to wish all of our readers a very happy, healthy and prosperous New Year. I hope that 2019 will be a great year for all of us. You have no doubt been bombarded so far with emails, articles, and programs on getting income tax debt relief for 2018 by making sure that you have taken advantage of all possible deductions before the year ends tonight. I thought I would take a slightly different approach to talk about another rich and famous person who is in hot water with the IRS.
Income tax debt relief: Even the rich and famous have income tax debt problems
We have previously written about rich and famous people who have debt problems and who have filed for bankruptcy. Their debt problems arose mainly out of irresponsible spending, financial mismanagement and income tax problems. These blogs were written to show you that it is not only ordinary people who run into trouble. People who many would think to have “all the money in the world” can also have financial problems. Financial mismanagement is not only an illness of the poor or middle class. It can strike anywhere or anyone.
Income tax debt relief: Some of our past rich and famous financial disaster blogs
Our previous financial mismanagement of the rich and famous includes:
FAMOUS CELEBRITY BANKRUPTCIES HAPPEN TOO
In this blog, I pointed out that many rich and famous people have gone bankrupt, including:
- Samuel Clemens (Mark Twain)
- Michael Jackson
- Abraham Lincoln
- Dorothy Hamill – Gold Medal Skater
- Johnny Unitas – Football Hall of Fame
- Milton Hershey – Founder Hershey’s
- H.J. Heinz – Founder Heinz
- Marvin Gaye
- Mick Fleetwood – Fleetwood Mac
- Walt Disney
- Larry King
- Burt Reynolds
- PT Barnum
- Tom Petty
- David Cassidy
- David Crosby
- Ed McMahon
- Henry Ford
- M.C. Hammer
- Toni Braxton
- Natalie Cole
- Robin Williams
- 78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce within two years of retirement.
- The National Endowment for Financial Education says that 70% of all people who suddenly receive large amounts of money will lose it within a few years.
FORMER PRO ATHLETES WHO ARE BROKE: EARN OVER $400 MILLION & GO BANKRUPT?
In this blog, I talked about former pro athletes who are broke. Former NBA star and broadcaster Charles Barkley estimates that 60% – 70% of professional athletes go broke for all or any of the following reasons:
- Buying lavish gifts and giving money to family and friends
- Unsupportable lifestyles
- Mansions around the world
- Yachts
- Exotic cars
- Bad business ventures
- Bad money managers
- Not understanding financial matters
- Zero savings
- No rainy day fund
- No retirement plan
DEBT FORGIVENESS CRA: CANADA REVENUE AGENCY BEATS DONOVAN BAILEY
In this blog, I wrote about Canadian Olympian. Donovan Bailey and his income tax debt problems with Canada Revenue Agency (CRA). We also described his income tax debt relief settlement plan to cut his income tax debt.. It seems that Mr. Bailey was not able to outrun CRA. Therefore he needed a formal debt settlement plan.
DEBT SETTLEMENT VS CONSUMER PROPOSAL CANADA: ENGLISH REALITY TV STAR KATIE PRICE NEEDS
This blog was about UK celebrity Katie Price who had many financial problems. I spoke about her financial issues and her UK bankruptcy proceedings.
Income tax debt relief: Dionne Warwick
Grammy Award-winning vocalist Dionne Warwick has filed for bankruptcy because she was in need of income tax debt relief. The 72-year-old vocalist, well-known for hits such as “Do You Know the Way to San Jose” and “That’s What Friends Are For” submitted the bankruptcy documents in New Jersey, where she lives.
She listed assets of $25,500 and liabilities of greater than $10.7 million in her bankruptcy filing. Her largest debt is income tax debt of near $7 million owed in back tax obligations to the Internal Revenue Service (IRS) as well as greater than $3 million in tax obligations to the state of California. This includes interest and penalties.
She declared her present income as $20,950 a month, with monthly expenditures just $10 less than that. Dionne Warwick’s press agent, Kevin Sasaki, claimed that the vocalist’s personal bankruptcy was primarily the outcome of “irresponsible and gross financial mismanagement” in the late 1980s to the mid-1990s.
Income tax debt relief: Start 2019 off the right way
No one likes to pay taxes, but everyone hates having CRA tax debt problems. Do you require CRA debt forgiveness? If you’re considering bankruptcy because of income tax debt, or for any reason. We can show you bankruptcy alternatives to get CRA debt forgiveness. We can end your debt pain through a consumer proposal, debt consolidation, and credit counselling. Contact a professional that you can trust – Ira Smith Trustee & Receiver Inc.
The Ira Smith Team has decades and generations of experience dealing with diverse issues and complex files, including negotiating with CRA. We deliver the highest quality of professional service. Don’t settle for less. Give us a call today and Starting Over, Starting Now you can overcome your financial difficulties.
Again I wish all of you a healthy, happy and prosperous New Year.