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- The IRS filed a $91,968 lien against Mitchell on Aug. 28 in the New York City Register's office
- The IRS filed a $277,015 lien against Mitchell on Aug. 27 in New York.
- The IRS filed a $136,130 lien against Mitchell on April 27, 2007, in New York.
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Tax revenues continue to plummet: Is it time to panic?
![](https://webarchive.library.unt.edu/web/20091009175115im_/http://www.blogcdn.com/www.walletpop.com/blog/media/2009/10/tax-calculator-1254979148.jpg)
Data out this week, however, is even worse. Collections through the end of August are down 25%. Those numbers include collection rates for individual taxes, corporate taxes, Social Security and Medicare revenues and other payroll taxes. Corporate income tax revenues alone plunged nearly 60%.
Method Man runs into the Tax Man
![Method Man](https://webarchive.library.unt.edu/web/20091009175115im_/http://www.blogcdn.com/www.walletpop.com/blog/media/2009/10/methodman.jpg)
Method Man told The New York Daily News that the reason behind the oversight is simple: "Myself, I'm a pothead. It's no secret. Everyone knows that. I go on the road and forget everything else. Sure, [the tax department] sent letters to my house saying, 'We need this money.' They started sending them in 2002. . . "
47% of households pay no federal income taxes
![](https://webarchive.library.unt.edu/web/20091009175115im_/http://www.blogcdn.com/www.walletpop.com/blog/media/2009/10/2412745961_208f0b2b39_m.jpg)
Most households earning less than $30,000 per year fall into this category, as do nearly half of those earnings between $30,000 and $40,000. Some 22% of households earning between $50,000 and $75,000 pay no income taxes, and an alarming 9% of households between $75,000 and $100,000 pay no taxes.
Those figures don't include payroll taxes.
Most people agree that a progressive tax structure makes sense: It's better to fuel government programs with cash from people who have enough than from milking people who are struggling to put food on the table.
But on the other hand: Isn't it problematic to have a democracy where 100% of households can vote on how money is spent when only 53% of households are contributing to the pot? If a larger percentage of the population paid taxes, would we be tougher on overspending in Washington?
In a country with as much income inequality -- not that there's anything wrong with that -- as the United States, the rich will always pay the overwhelming majority of taxes. But it seems that everyone -- or nearly everyone -- should pay some token amount, if only to give them an incentive to focus on how their money is being spent.
Need cash? Turn someone in for tax evasion!
![](https://webarchive.library.unt.edu/web/20091009175115im_/http://www.blogcdn.com/www.walletpop.com/blog/media/2009/10/tax-calculator.jpg)
Normally you don't think of the IRS as a way to make money, but there may be an exception: If your boss or someone else you know is cheating on taxes and you feel like tattling, you could make a lot of money. The Associated Press reports that since Congress beefed up rewards for whistle blowers on tax cheats, reports of tax hanky panky are on the rise: The agency received tips on 1,246 suspected tax dodgers in 2008, each owing more than $2 million. That's a huge jump from the 116 tips received in 2007.
According to the IRS, "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% to 30% of the amount collected. If the case deals with an individual, his or her annual gross income must be more than $200,000."
If you want to file a whistleblower report, use this form (PDF file).
And now a quick word for employers out there: Don't cheat on your taxes. Of course it's unethical and could land you in serious trouble but, more immediately, it could make you very vulnerable to blackmail. You're the boss and you don't want to end up working for your employees. If you cheat on your taxes and your employees know -- and they hear about the whistleblower program -- you could end up in a very awkward situation that could ruin your business regardless of whether the IRS comes crashing in.
Brian McKnight runs into IRS problems
R&B singer Brian McKnight is the latest celebrity to run into tax problems, with public records showing the IRS filing a $257,345 lien against him in the New York City registrar's office.
Detroit News blogger Robert Snell was unsuccessful in getting a comment from the singer or his representatives.
McKnight's last studio album came out in 2006 and peaked at number 32 on The Billboard 200 -- his worst showing since his debut in 1992.
In recent years, McKnight has shifted his focus to television -- appearing as a contestant on Donald Trump's Celebrity Apprentice. The 40-year old is also set to host a one-hour weekly entertainment show on CW Plus.
Given McKnight's large fan base, a $250,000 tax lien isn't such a big deal -- assuming it isn't a symptom of other more serious financial problems. Quick Brian: There's still time to schedule a few Christmas shows. His latest album is set to hit stores Oct. 27, and will feature collaborations with Jill Scott and Stevie Wonder.
Popular movie critic Elvis Mitchell in trouble with the IRS
![](https://webarchive.library.unt.edu/web/20091009175115im_/http://www.blogcdn.com/www.walletpop.com/blog/media/2009/09/elvis-mitchell-200gvs092809-%282%29.jpg)
The 2 Mortgage Guys explain benefits of escrow
This week on Show & Tell with The 2 Mortgage Guys we'll explain how escrowing works when included in your mortgage payment. We'll explain the benefit and advantage of escrowing your taxes and insurance as well as what could happen with future payments.
Ryan Minick and Steve DeLon are The 2 Mortgage Guys. Subscribe to their newsletter or visit them at www.The2MortgageGuys.com.
The most expensive fence in the U.S.
![](https://webarchive.library.unt.edu/web/20091009175115im_/http://www.blogcdn.com/www.walletpop.com/blog/media/2009/09/big-fence-1253307002.jpg)
In a nutshell, it will cost $6.5 billion over the next 20 years to maintain the fence along the U.S.-Mexico border. However, despite the fact that $2.4 billion has already been spent to build 633 miles of fence along the southwest border, there's no way to evaluate cost-wise whether the fence has helped to control the flow of illegal immigrants.
Full House star Dave Coulier owes back taxes
![](https://webarchive.library.unt.edu/web/20091009175115im_/http://www.blogcdn.com/www.walletpop.com/blog/media/2009/09/coulier.jpg)
Apparently, Full House's Joey (Dave Coulier) has done exactly that. Perez Hilton reported today that tax liens totaling nearly $50,000 have been filed against that TV uncle with a talent for cartoon character voices.
According to Detroit News: "The state of California filed an $11,793 lien against him on May 4 in the Los Angeles County Recorder of Deeds office.The IRS filed a $37,063 lien against him on March 17, 2008, in Los Angeles County.
Checking up on Dave Coulier's Official website, I found no mention of his little tiff with the taxing authorities. He does however, indicate that he'll be visiting close to my home in Wisconsin next month. I also checked Dave's Twitter feed to see if he tweeted about the situation. He hasn't yet mentioned his back taxes on Twitter, but he does indicate that becoming a senator may be one way to pick your nose in peace - or not.
This much I can tell you for certain; It's better to pay our taxes when they are due, than it is to try retrospectively prying the IRS off our backs. I always suggest leaving tax form preparation to a professional tax accountant, because being able to talk in comical voices won't make a tax audit one bit funnier.
Retiree Tax Heavens (and Hells)
![](https://webarchive.library.unt.edu/web/20091009175115im_/http://www.blogcdn.com/www.walletpop.com/blog/media/2009/09/tax-friendly-places-to-retire-promo-185.jpg)
Click through our photo gallery and see which cities are the most tax-friendly & unfriendly for retirees.
F.A.Q.: Everything you've wanted to know about health care reform
![](https://webarchive.library.unt.edu/web/20091009175115im_/http://www.blogcdn.com/www.walletpop.com/blog/media/2009/08/andymiller.jpg)
Isn't the public option for freeloaders? Why should we adopt it when critics are calling it socialist?
A public option won't have freebies. Everyone will pay a premium to get coverage from the public plan or option, although the uninsured with low incomes will get a subsidy from the government to afford coverage. Many individuals cannot get insurance now because they have pre-existing medical conditions, such as diabetes. These patients, under reform, could buy coverage through a private insurer or a public plan or option, if it's approved by Congress.
Users of a public option could include small businesses, their workers and many young adults, who account for a large number of uninsured.
Supporters of the public option, including President Obama, say it will increase competition in health insurance.
The public plan would be operated by the government, similar to Medicare. But the care will be delivered by private doctors, also just like Medicare. Not many people call Medicare ''socialist,'' but it's a term that opponents of the Democrats' initiative use to attack the public option. Still, there's no doubt that the public plan has become a divisive issue, and even some Democrats oppose the idea.
What kind of care would the public option give you?
The public plan would have to compete with private health plans for customers in an ''insurance exchange,'' or marketplace, so it would have to deliver comparable medical services. Democrats say the exchange would give consumers more information about the quality of medical services they're buying. So if a public plan didn't give good care -- if its customer satisfaction was low, for example -- consumers would vote with their feet. Obama and Democratic leaders have noted that the current U.S. health care system doesn't get good marks on medical quality. The system is plagued by medical errors. The life expectancy and overall health of the U.S. population ranks much lower than in many developed countries.
Is the taxman Facebook-stalking you?
Just when you thought the only people you had to worry about offending with your Facebook profile were prospective employers, parents, and creepy sex offenders, The Wall Street Journal reports (subscription required) that tax collectors are going online to hunt down deadbeats.
According to the Journal, "In Minnesota, authorities were able to levy back taxes on the wages of a long-sought tax evader after he announced on MySpace that he would be returning to his hometown to work as a real-estate broker and gave his employer's name. The state collected several thousand dollars, the full amount due."
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Anyone seeking help with taxes should start with the fundamentals. Here are the basics of taxes.
Tax revenues continue to plummet: Is it time to panic?
Two months ago, the predictions were dire. The Treasury Department calculated that at the then-current pace, tax receipts...
Method Man runs into the Tax Man
Hip-hop star turned actor Method Man is looking at four years in prison on charges that he failed to file a return or pay...
47% of households pay no federal income taxes
A new report from the nonpartisan Tax Policy Center finds that roughly 47% of households won't end up owing any federal...
Need cash? Turn someone in for tax evasion!
With foreclosures, gas prices, and credit card default rates all on the rise, a lot of people are looking for ways to earn...
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