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.
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
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!
