What’s worse than starting the new year off with holiday debt? Owing the IRS back taxes on top of it.
We all remember Stephanie Tanner, the sweet and silly middle-child on the hit show Full House. She was funny, and well known for her line “How rude!” and her serious dance skills. But nowadays, Jodie Sweetin, the 31-year-old former child star, has had a lot to deal with.
Once addicted to methamphetamine, Jodie Sweetin started off the new year with a $53,626 tax bill that she’d been avoiding for five years, since 2009. Tax officials from California caught up with her though, and the actress has finally paid off the income tax she owed.
You’d be surprised at how many celebrities have found themselves in trouble with the Internal Revenue Service. Take Pamela Anderson for example, who was one of the Top 500 Delinquent Taxpayers in California a few years ago, owing nearly half a million dollars in unpaid income taxes. Or Manny Pacquiao, the world-class boxer who is fighting a battle on two shores over a tax debt of about $68 million.
When considering the debts of other celebrities, Sweetin’s debt actually seems pretty slim, but it’s still significant. Stars have to pay taxes just like the rest of us, and suffer the consequences of a mounting tax bill if they don’t. (When the tax lien against Jodie was first filed in L.A. county, the amount was only $27,445.)
Even celebrities are not immune to the woes of taxes. These debts can balloon quickly as they did with Sweetin. Whether negotiating a settlement or payment plan terms, it’s likely Sweetin could have saved herself a lot of money resolving this $50k+ tax bill” says Managing Partner Harry Langenberg of Optima Tax Relief.
Just like everybody else, when a Notice of a State Tax Lien is filed against the rich and famous, the balance is made available to the public. Anyone from current and potential creditors to tabloids like TMZ can see the document. Don’t feel too bad for them though. Like everyone else, stars can often manage their startling tax debts with payment plans and Offers in Compromise, agreements that allow taxpayers to settle their tax debt for less than they owe (often shaving thousands, or even millions from the original balance).
We’re sure Jodie Sweetin will be feeling the bite from her time as a tax dodger for years to come–tax liens in California stick on your credit report for at least a decade. We can only imagine the damage to her credit score.
This article was written by Brenda Harjala, the Community Manager for SuperMoney. Her mission is to help fight your evil debt blob and get your personal finances in tip top shape.