Tax law requires that individuals file a return for income earned annually, and if a person doesn’t complete this process, he or she will owe back taxes. The Internal Revenue Service is not an organization that people want to dodge, which former Nickelodeon Star Drake Bell recently found out the hard way.
By jenniferh2525 (Drake Bell) [CC BY-SA 2.0 , via Wikimedia Commons
Drake Bell – who most recently participated in ABC’s diving competition “Splash” – reportedly filed for bankruptcy. It is said that he has debts that total $581,000, which includes back taxes. While the 26-year-old made $408,000 in 2012, that number dropped to just $14,099 in 2013. With expenses totaling $18,771, Bell found himself in f.
If you owe back taxes like Drake Bell, there are several options available:
Tax bill payments: According to the IRS, people who are unable to pay their full tax bill would be wise to secure a loan to pay in full rather than make installment payments. The IRS will charge late fees and penalties, which could be more expensive than the interest charged on a loan.
Ask for an extension: Depending on the circumstances, people can ask for additional time to pay their tax bill in full. This can be secured using the Online Payment Agreement application, which can be found at www.irs.gov. However, this option isn’t made available to everyone.
Installment agreement: People who are unable to pay in full, and don’t want to take out a loan, can request an installment agreement through the IRS. This means the person who owes back taxes will have to pay the amount due each month or face additional financial penalties.
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
Bringing on outside investors can provide the capital and strategic support a business needs to grow. However, raising capital also introduces important legal, financial, and operational considerations. Before bringing on investors, businesses should address key legal issues to reduce risk, streamline investor due diligence, and position the company for long-term success. Early preparation signals that […]
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
