Law Offices Of Connie Yi, PC
Tell Us About Your Case

For the safety of our community, clients and staff, we have suspended all in-person meeting effective March 17, 2020. All consultation meetings will be via Phone or Zoom Video Conferencing. Please contact us at 925-484-0888 or email us directly at [email protected] to schedule the consultation.

Bay Area Estate And Tax Planning Law Firm
Estate Planning
Trust Administration and probate

Get
Started

Actor makes payment in high profile tax debt case

| Nov 1, 2013 | Uncategorized |

Actor Stephen Baldwin made another large payment towards his substantial tax debt recently. The payment was a part of an installment plan to resolve the tax dispute with state authorities after it was discovered that he had not paid an appropriate amount of taxes from the years 2008, 2009, and 2010.

The actor says that this accumulation of tax debt was not the result of an intentional act to try to avoid paying what he owes. Instead, he told reporters that he simply followed bad advice and was himself unclear on the law.

Misunderstandings or inaccurate tax advice are two issues that can easily land a taxpayer in hot water with the Internal Revenue Service. For the average California taxpayer, state and federal income tax laws are confusing and complex, which is why those with more complicated tax situations often seek the advice of a professional in preparing their taxes. Unfortunately if the advice from that professional is inaccurate, the taxpayer could land in hot water.

In this case that hot water led to charges of a class E felony for Mr. Baldwin for the failure to pay state taxes for several years in a row. However, under a plea agreement that he made with the state authorities, he is paying back a newly agreed upon amount and will be able to have his record cleared without serving any time behind bars. This settlement is an example of what can happen when one works with tax authorities to come to an agreeable solution.

Source: New York Post, “Stephen Baldwin pays $100,000 in overdue taxes,” Oct. 18, 2013. 

Categories

Archives

FindLaw Network

Recent Blog Post

What are reasonable fees to charge as a trustee in California?

When implementing an estate plan in California, it is essential to ensure that you receive the proper compensation for the amount of time and work you are putting in. The probate court will look through the amount you charge to see if it is reasonable, especially if...

What to know about life insurance trusts

California families have an exemption for their estate that keeps it from being subject to income taxes. However, above that $11.7 million, the estate tax bill could get large. This is why they need to take measures to reduce the size of their taxable estate. Life...

Are estate taxes headed for changes?

Not every inheritance involves paying estate taxes, but some estates rise above the federal exclusion amount. California residents that feel familiar with state and federal tax rules might not realize changes could happen. Namely, proposals intended to raise tax...

View More Blog Posts