- Days left

The Osbournes' New Reality: A $1.7 Million Tax Lien

Ozzy and Sharon Osbourne face a $1.7 million tax lien.Ozzy and Sharon Osbourne may be making plans to attend the Royal Wedding in the UK, but the couple is currently making news here in the United States. Several media outlets, led by TMZ, have reported that the IRS has filed a $1.7 million lien for unpaid taxes against the rock star couple.

According to lien documents filed in the L.A. County Recorder's Office, Ozzy and Sharon owe $718,948.25 in unpaid taxes for the 2008 tax year, and $1,024,175.03 in unpaid taxes for 2009. The amount of the lien astonished many, considering the level of success that the Osbournes have achieved over the past few decades. In addition to Ozzy's music career, the two have earned income from media appearances, shrewd business ventures (such as OzzFest) and their former reality show on MTV. Estimates place the couples' net worth at close to $180 million.There has been no official comment from the Osbourne camp about the nature of the liens, but Sharon unofficially addressed the issue on Twitter, noting last week:

You can't rely on anyone but yourself. You have to be on top of your own business affairs. My fault........lesson learned.

She followed up this week with an explanation by tweeting:

Just because you're paying someone doesn't mean they're doing the job correctly.

While it's easy to jump to conclusions and slap labels on taxpayers in trouble, poor financial advice is more common than you would imagine. In fact, it's a frustration shared by many taxpayers, including actor Nicolas Cage. Cage, who at one point was said to owe the IRS nearly $20 million in unpaid taxes, blamed his business manager for making poor decisions that ultimately lead to his financial issues. Cage has since switched business managers and is taking steps to repay the IRS.

You don't have to be a rock star or actor to fall prey to bad advice. Stories like these underscore the importance of hiring a good tax professional.

Increase your money and finance knowledge from home

Managing your Portfolio

Keeping your portfolio and financial life fit!

View Course »

Goal Setting

Want to succeed? Then you need goals!

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