Although he was making music long before, Ruben Studdard’s win during the second season of American Idol (in spring 2003) made him a star. He later won a Grammy award and is billed as being a pop, R&B, and gospel singer.
His music has solidly performed, even if he himself has not recorded a lot of chart-toppers since American Idol. He still remains one of the better-known winners of the hit show, although the runner up from that season (Clay Aiken) occasionally overshadows Studdard.
Ruben Studdard tax problems
As the winner of American Idol, he won a one million dollar recording contract, one of the key elements in his rise to fame. However, it seems that he neglected to correctly file a claim on that money, and possibly on other income as well. As a result, this recording star owes back taxes totaling over $200,000! It is said here that he owes over $171,000 to the IRS and over $21,000 to the Alabama Department of Revenue.
Tough Lessons to Learn
A lesson to anyone who begins earning more income, or who receives a large sum of money, is to hire a tax professional to help you correctly file your tax returns and pay your taxes.
Unfortunately it’s too late for Ruben Studdard. The IRS is after him, and his tax problems will be more difficult and expensive problem to resolve. Another lesson we can learn here is that even if you already have an IRS problem, it’s better to begin dealing with the problem as soon as you can.
About Arnold Schwarzenegger
Arnold Schwarzenegger rose to fame as an Austrian body-builder, then a B-list movie actor, and finally a headlining star. No one goes to see an “Arnie” movie because of his acting ability but we all pay a lot of money to see his movies anyway. As the result of movie earnings, plus other business endeavors, Schwarzenegger’s net worth is measured in the hundreds of millions.
Of course, this story wouldn’t be complete without the step from acting to politics and now Arnold is the governor of California, a state that is teetering on the verge of financial collapse.
Californians can rest assured that their government officials will pay their federal taxes, as long as they are continuously reminded by the IRS.
Arnold Schwarzenegger tax problems
On May 11, 2009, the IRS filed a $79,000 tax lien against Arnold Schwarzenegger. (Source: The Los Angeles Times). While this is more than many people make in a year, Arnold’s people quickly dismissed it as an error and said the governor paid his tax debt right away.
About Conrad Murray
Some celebrities are famous for their skill in acting or singing, but not Conrad Murray. Murray is famous for being the doctor to The King of Pop, Michael Jackson, and is now embattled with legal problems for the alleged role he played in Jackson’s death.
It is said that Conrad Murray has a history of owing people money: According to the Huffington Post, Murray’s medical practice owed thousands of dollars in fines and judgments and overdue fees on loans and credit cards. To top of the “nice guy” image, he also owes thousands in child support and even had a fine of nearly $1,000 for driving with an expired license plate and no proof of insurance.
Conrad Murray tax problem
The Huffington Post also reported that Murray owed back taxes so we went hunting for them and found a tax lien of over $23,000 owing in back taxes in 1993, 1996, and 2003.
About Anna Kournikova
Anna Kournikova was born in the Soviet Union in 1981 and started playing tennis when she was just 5 years old. Her prowess on the court caught the attention of professional tennis scouts and she had a career breakthrough in her early teens. 1998 through 2000 were peak years for Anna Kournikova where she ranked well in numerous matches. Unfortunately, injuries started to build and by 2003 she withdrew from the highly competitive sport, although she still plays exhibition games from time to time. She continues to be one of the top-searched celebrities online today. (Source: Wikipedia)
During her career, she earned over $3 million in prizes but if there’s anything we know about celebrities, the real money is in endorsements. Even though she has stopped playing at the level she once played, the media attention she receives, partly due to a fairly active modeling career, has helped to keep her in the spotlight. We can be certain that she has earned millions more in endorsement fees (and generated a healthy income tax bill) in the years since she played professionally.
Anna Kournikova Tax problems
For a wealthy tennis star whose life off the court seems to generate as much headlines as her life on the court, it’s not a surprise that Anna Kournikova faced some tax problems last year. According to Detroit News, she owed $6,381 in back taxes to the IRS. For someone as successful as Anna Kournikova, this is likely an innocent error on her tax return, perhaps the result of a mistyped number or a miscommunication between her CPA and one of her many financial assistants.
Rick Mahorn was a basketball player who played for the Detroit Pistons, and sadly has filed bankruptcy as the result of an IRS debt on unpaid taxes.
The Mahorns filed for Chapter 7 bankruptcy following failed investments, a drop in value of a home, and IRS back taxes. Pro athletes make a lot of money, but also need to pay a lot in taxes. The more successful you become, and if you owe back taxes, the larger the target you are for the IRS.
Government tax collectors will always go after individuals with large incomes, as they are the most likely to pay their debts.
