Poor Nicholas Cage. Literally.
November 12, 2009 by taxman
Filed under IRS News Items
It turns out that Celebrities are just like the rest of us- they hate paying taxes just like all the rest of us do. The latest celeb to fall victim to a public personal-finance debacle is Nicholas Cage. According to sources, Cage owes about $6million in unpaid taxes from 2007 to the IRS. He owes more than $350,000 for back taxes from 2002-2004.
Cage’s financial troubles are due to speculative real estate investments and accounting techniques. He is now involved in a $20 million dollar lawsuit. He is being forced to sell major assets and investments at a signicantly lower price which he will take as a loss. Cage is faced with huge tax liabilities because of one of his accountant’s incomeptence, misrepresentations, and recklessness. His biggest mistake was a failing to file his client’s income taxes.
In order to rake up some cash to pay all of his taxes, Cage is being forced to put the following properties up for sale:
His Bel Air mansion for about $10 million.
His Las Vegas digs, also for roughly $10 million.
A $3.55 million mansion in New Orleans’ Garden District. Described as “haunted.”
A 24,000-square-foot $12 million mansion in Rhode Island.
Source One
Related posts
Whistleblower – Informant Award
June 10, 2009 by Taxcut Editor
Filed under IRS News Items
The IRS Whistleblower Office pays money to people who blow the whistle on persons who fail to pay the tax that they owe. If the IRS uses information provided by the whistleblower, it can award the whistleblower up to 30 percent of the additional tax, penalty and other amounts it collects.
Who can get an award?
The IRS may pay awards to people who provide specific and credible information to the IRS if the information results in the collection of taxes, penalties, interest or other amounts from the noncompliant taxpayer.
The IRS is looking for solid information, not an educated guess or unsupported speculation. We are also looking for a significant Federal tax issue – this is not a program for resolving personal problems or disputes about a business relationship.
What are the rules for getting an award?
The law provides for two types of awards. If the taxes, penalties, interest and other amounts in dispute exceed $2 million, and a few other qualifications are met, the IRS will pay 15 percentto 30 percent of the amount collected. If the case deals with an individual, his or her annual gross income must be more than $200,000. If the whistleblower disagrees with the outcome of the claim, he or she can appeal to the Tax Court. These rules are found at Internal Revenue Code IRC Section 7623(b) – Whistleblower Rules.
The IRS also has an award program for other whistleblowers – generally those who do not meet the dollar thresholds of $2 million in dispute or cases involving individual taxpayers with gross income of less that $200,000. The awards through this program are less, with a maximum award of 15 percent up to $10 million. In addition, the awards are discretionary and the informant cannot dispute the outcome of the claim in Tax Court. The rules for these cases are found at Internal Revenue Code IRC Section 7623(a) – Informant Claims Program, and some of the rules are different from those that apply to cases involving more than $2 million.
If you decide to submit information and seek an award for doing so, use IRS Form 211. The same form is used for both award programs.
More Information:
What Happens to a Claim for an Informant Award (Whistleblower)
Procedures used and the criteria followed to identify and process informant cases
History of the Whistleblower/Informant Program
Historical information on the evolution of the concept of paying for leads from its inception up to the current law followed today
Whistleblower Law
A brief synopsis of what the new whistleblower law entails. This is the most significant change to the Services approach to informant awards in 140 years
How Do You File a Whistleblower Award Claim
Step by step procedures to follow to file an informant claim for award
Confidentiality and Disclosure for Whistleblowers
The rules governing confidentiality of informant information
IRC Section 7623(b) – Whistleblower Rules
The requirements of the new rules enacted in IRC Section 7623(b), the Whistleblower Program
IRC Section 7623(a) – Informant Claims Program
The requirement of the rules governing claims that do not meet the requirements of the provisions in the whistleblower program under IRC Section 7623(b). These claims are part of the Informant Claims Program
IRS Form 211
Application for Award for Original Information
News Release IR-2007-201
Procedure Unveiled for Reporting Violations of the Tax Law, Making Reward Claims
Notice 2008-4Guidance to the public on how to file claims
Claims Submitted to the IRS Whistleblower Office under Section 7623
Whistleblower Office At-a-Glance
2008 Report to Congress on the Whistleblower Program
Reporting other information to the IRS
If you have information about tax noncompliance but are not interested in an award, or you have other information you believe may be of interest to the IRS:
* For information on how to Report Suspected Tax Fraud Activity, if you have information about an individual or company you suspect is not complying with the tax law, and you do not want to seek an award . You can remain anonymous
* The IRS sets professional standards for attorneys, certified public accountants and enrolled agents who represent taxpayers before the IRS. To learn more about those professional standards, or how to report a violation, see Office of Professional ResponsibilityAt-a-Glance – Report Circular 230Violations – email OPR@irs.gov
* Report Fraud, Waste and Abuseto Treasury Inspector General for Tax Administration (TIGTA), if you want to report, confidentially, misconduct, waste, fraud, or abuse by an IRS employee or a Tax Professional, you can call 1-800-366-4484 (1-800-877-8339 for TTY/TDD users). You can remain anonymous.
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