- Days left

Lil Wayne Hit With a $5.6 Million Tax Lien

Rapper Lil Wayne gets hit with a tax lien of $5.6 million while on tourLast month, rapper Lil Wayne announced that he hoped to retire early in order to spend more time with his family. It seems, however, that Uncle Sam might have other plans. Lil Wayne, whose real name is Dwayne Michael Carter, Jr., may have to work a little longer in order to settle some unpaid tax debts.

Carter was recently slapped with a federal tax lien in the amount of $5.6 million. These aren't Carter's only federal income-tax liens. Last year, he was liened by the feds for more than $1 million for the tax years 2004, 2005 and 2007; he has reportedly paid off those obligations. These most recent liens reflect balances due of $3,351,078 for 2008 and $2,258,956 for 2009.Carter, who turns 29 this year, has been rapping successfully for 20 years. He got his start at the age of nine with Cash Money Records; he was the youngest member of the new label at the time.

In 2008, the year for which Carter owes the most money to the IRS, the rapper had his most successful album ever, Tha Carter III. The album sold 1 million copies in its first week in the U.S. and more than 3.5 million in the U.S. overall; it has been certified triple platinum by RIAA and won the Grammy for Best Rap Album that year.

The year before Tha Carter III was released, Lil Wayne was charged with criminal possession of a weapon and, as a result, served time in New York. If this story sounds familiar, it is. Lil Wayne's story, one of a rapper jailed over a firearm while owing back taxes, is reminiscent of fellow rapper Ja Rule, who recently pleaded guilty to tax evasion in a federal court.

Lil Wayne was released from prison weapons charges late last year and is currently on his I Am Still Music Tour. It marks his first appearance on stage in more than a year.

Increase your money and finance knowledge from home

Banking Services 101

Understand your bank's services, and how to get the most from them

View Course »

Building Credit from Scratch

Start building credit...now.

View Course »

TurboTax Articles

Infamous Tax Crimes

Although most Americans fill out their tax returns diligently and honestly, not all taxpayers are as respectful of the law. Some wealthy taxpayers cheat because they feel they already pay more than their fair share of taxes, while some regard the entire tax system as unconstitutional. Regardless of the reason, it's big news when the rich and famous are convicted of tax crimes. You're likely to know at least one or more of the famous names on this list of notorious tax cheats.

Cities with the Lowest Tax Rates

The total amount of tax you pay reaches far beyond what you owe the federal government. Depending on where you live, most likely you're required to pay additional taxes, including property and sales tax. The disparity between the amount of tax you pay in a low-tax city and that in a high-tax city can be dramatic. Living in any of these 10 cities could save you a bundle, although the exact amount may fluctuate based on your income and lifestyle choices.

Cities with the Highest Tax Rates

Much ado is made in the press about federal tax brackets, but cities can carry a tax bite of their own. Even if you live in a state that has no income tax, your city may levy a variety of taxes that could eat away the entire benefit of living in an income tax-free state, including property taxes, sales taxes and auto taxes. Consider all the costs before you move to one of these cities, and understand that rates may change based on your family's income level.

Great Ways to Get Charitable Tax Deductions

Generally, when you give money to a charity, you can use the amount of that donation as a deduction on your tax return. However, not all charities qualify as tax-deductible organizations. While there are many types of charities, they must all meet certain criteria to be classified by the IRS as tax-deductible organizations. There are legitimate tax-deductible organizations in many popular categories, such as those listed below.

A Freelancer's Guide to Taxes

Freelancing certainly has its benefits, but it can result in a few complications come tax time. The Internal Revenue Service considers freelancers to be self-employed, so if you earn income as a freelancer you must file your taxes as a business owner. While you can take additional deductions if you are self-employed, you'll also face additional taxes in the form of the self-employment tax. Here are things to consider as a freelancer when filing your taxes.

Add a Comment

*0 / 3000 Character Maximum