And here I thought my days of reporting on Joe Francis were over…

It turns out that the Girls Gone Wild founder hasn’t quite put his tax woes behind him. After taking a deal to plead guilty to two misdemeanor counts of filing false tax returns – and escaping additional jail time in the process – Francis has found himself in the hot seat again.

If you believe TMZ, the IRS has liened Francis for nearly $34 million. To clarify, the IRS claims that Francis owes tens of millions of dollars in unpaid taxes. The breakdown is as follows: $17.7 million in 2001, $11.2 million in 2002 and $4.9 million in 2003. I’m not sure how much the penalties are since I haven’t seen the actual liens but those numbers put his net income somewhere close to $100 million for those three years.

I know, I know. Here I’ve blogging tax all this time when clearly, I should be producing porn.

On the plus side, though, I haven’t had to advise TMZ that my accounts have been frozen by the IRS to the tune of $100 million (no, those numbers don’t quite make sense – just reporting as I hear it). Francis has also allegedly reported that he will file for personal bankruptcy on tomorrow.

I’m not sure how this will affect Francis’ plea deal which requires him to resolve his outstanding tax issues. I mean, it is a resolution – but I’m guessing not so much what IRS had in mind. We’ll see.

(Editor’s note: I have since seen a copy of the liens as filed with LA County. As of 11/06/2009, the liens totaled $33,819,088.14)Similar Posts:

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The woman who claims that she “never hated a man enough to give him diamonds back” may have to change her mind when it comes to Bernie Madoff. Zsa Zsa Gabor claims to have lost between $7-$10 million as part of Madoff’s scheme, leaving her with some substantial tax woes.

The 92 year old actress has been liened by the Internal Revenue Service for $118,000 for the years 2001 and 2002; the lien has been filed against one of Gabor’s mansions in California. Gabor’s lawyer, Chris Fields, says that the tax bill is part of the fallout from the Madoff scheme.

Gabor’s husband (from her longest marriage – so far) German playboy Frederic von Anhalt intends to help Gabor work out a payment plan with the IRS. Anhalt has reportedly received millions of dollars by selling the Anhalt name by adopting, along with Zsa Zsa, several men. If that sounds a little bit crazy, remember that this is the same man that claimed to be the father of Anna Nicole Smith’s baby (yeah, that’s where you’ve heard the name before). Crazy is relative.Similar Posts:

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“Girls Gone Wild” founder Joe Francis feels he finally got a break when a federal judge okayed a deal that Francis struck with prosecutors. Under the agreement, Francis was credited with 301 days already served and sentenced to one year of probation.

The plea deal was struck after Francis learned that a key witness, Francis’ former accountant, had withheld information from his defense team at trial. Francis was originally indicted on tax evasion charges in 2007 stemming from a number of income omissions and false deductions. He pleaded guilty to two misdemeanor counts of filing false tax returns and one count of bribing Nevada jail workers.

“I think we won that one,” Francis said after the hearing.

The former bad boy was polite during the hearing, answering questions as asked. It was quite a turn-around from the belligerent persona he had maintained since the charges were first brought against him in 2007.

After the hearing, he kissed his mother.

Apparently he really does kiss his mother with that mouth.

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When Top Gear’s Jeremy Clarkson reviewed the electric sports car Tesla Roadster, he had plenty to say. Notably, he complained about the price, which was at the time of filming in the UK, £92,000 (about $150,962.40 US). Lucky for all of you prospective Tesla Roadster buyers, the price has dropped to a mere $109,000. And if you moved to Colorado, you could get your hands on it for a mere fraction of the price.

Colorado? Yeah, you read that right. Colorado is offering a 38% tax credit on the Roadster through the end of the year. That brings the total cost of the Roadster to about $65,000.

It’s not just the Tesla that can take advantage of the credit. It applies to your run of the mill Prius, too. In fact, Colorado is ahead of the pack when it comes to providing tax breaks for hybrid and zero-emission vehicles. The state has been doing it for years.

But it’s the size of the Tesla refund that is attracting attention.

Bowing to pressure from overextended taxpayers, state lawmakers passed a bill which would cap such refunds at $6,000. The bill, however, doesn’t take effect until next year. That means that there’s still plenty of time to take advantage of the refund this year.

Though state lawmakers didn’t expect to see more than 10 Tesla refunds, one Tesla dealership has reported selling six cars this week alone. That’s about $252,000 in refunds in one week. That’s not a pace that taxpayers are happy to see when faced with a $320 million deficit in the state budget.

Of course, there are some restrictions on the refund. For one, to qualify, the vehicle must be titled and registered in Colorado. And the credit is only available in the year that the car was purchased.

However, since it’s a tax credit (and not a flat out dollars back refund), there is a chance that the amount of the credit could exceed a taxpayer’s net tax liability for the year. If that happens, any excess credit may be carried forward and claimed on future year returns for up to five years.

So, it may not turn out be the kind of hit that taxpayers fear. That still doesn’t make taxpayers feel better about what’s perceived as an irresponsible tax policy. The amount of the refund alone, it has been noted, is more than many taxpayers will pay for the total cost of their car. In a tight economy, this isn’t the kind of thing that sits well with many folks.

What do you think? Fair game or bad policy?

And if you’re interested, you can watch the controversial “Top Gear” review of the Tesla Roadster here:

(In case you missed the scandal, the BBC later admitted that the scene of the car being pushed into the garage was not a result of the alleged 55 mile fail.)

Technorati Tags:
Tesla Roadster, Jeremy Clarkson, electric car, Colorado, tax credit

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“Survivor” winner Richard Hatch is finally a free man. The controversial TV personality, sometimes referred to as the “fat naked guy” on the show, has completed his sentence for tax evasion and related charges.

Hatch walked out of jail this morning, about 6 a.m.

But that doesn’t mean that he’s completely off the hook. Hatch must still serve three years of supervised release, complete a mental health program and pay the remainder of his taxes.Similar Posts:

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Rapper and Wu-Tang Clan member Method Man was arrested Monday on tax evasion charges stemming from an alleged refusal to pay personal income taxes. Method Man, whose real name is Clifford Smith, has reportedly failed to pay taxes from 2004 to 2007. His tax bill for the period was just $32,799 plus penalties and interest.

That actually begs the question: why an arrest? One of the charges is said to be a felony violation of “repeated failure to file personal income and earnings tax.” Failure to pay is a misdemeanor. And yet, Staten Island District Attorney Daniel Donovan has said the rapper will be “aggressively investigated and prosecuted” if he’s found guilty of the charges.

Is he teaching Method Man a lesson or is there something more?

If you voted something more, you and I are on the same page. A few months ago, the police paid Method Man a visit for, you guessed it, the same thing. In March, the Department of Taxation showed up on Method Man’s door with a number of police officers. At the time, the rapper was said to owe more than $50,000. And he had a great explanation for it:

Because I got high, I forgot to pay. It was stupid. I’m an idiot for that.

The government took his 2008 Lincoln Navigator to satisfy part of his obligations. Method Man insisted that he could have paid had he not been high, declaring, “I got plenty of money!”

Six months later, apparently he hasn’t worked out his tax and “other” issues. And I’m guessing the NY Department of Taxation doesn’t find it very funny quite as funny as he does. He faces up to four years in prison if convicted of the charges.Similar Posts:

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I’m a little bit obsessed with Elvis Presley. You may not know this about me (and perhaps now, are a little frightened). Yes, I’ve been to Graceland and I might have bought a few things. I have both volumes of Elvis Gold. And Elvis songs sit very comfortably on my iPod between Elton John and Eminem.

So you can imagine how my ears perked up tonight when Elvis was mentioned on a feature on “delebs” (that’s dead celebrities to you and me) on “60 Minutes.” (Quick explanation in case you’re eyeballing the blog post date: I missed the debut of “Amazing Race” – my favorite reality TV show – earlier in the week so I DVRed it – just getting around to watching it now).

On the show, Robert Sillerman, who paid $100 million to buy Elvis Presley Enterprises in 2004, discussed the wild popularity of Elvis after his death. Sillerman cited a 2002 BBC finding that over 84,000 people claimed “Elvis impersonator” as their primary occupation on their tax returns.

Now, I haven’t been able to find the actual BBC report, nor anything from IRS (yet!), to back this up… But I’d like to think that the fact checkers at “60 Minutes” didn’t let this one go without checking it out.

It’s a crazy statistic: I’m all shook up.

Thank you, thank you very much!

(Image via Wikimedia in the public domain.)Similar Posts:

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Richard Hatch is not having a good year. After qualifying for early release from federal prison, where he was serving time on tax evasion charges, he was allowed to spend the remainder of his sentence at his sister’s house as house arrest. Hatch, not necessarily being the most conventional guy, apparently had a different interpretation of his media appearance rules than the Bureau of Prisons did: his recent stints on TV and radio landed him in hot water when he failed to get the proper permissions.

And Hatch went back to jail. He then asked to be able to return to his sister’s house to serve out the remainder of his sentence. A federal judge denied that request.

Now, Hatch is appealing that decision and he has a surprising ally: the ACLU. The ACLU has been concerned about Hatch’s treatment since returning to jail among allegations that Hatch is being punished for speaking out against prosecutors in his case. If you recall, Hatch doesn’t actually think he went to jail for cheating on his taxes – he told Matt Lauer that it has everything to do with being gay.

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Or least his people did.

Rapper Ludacris, whose real name is Christopher Brian Bridges, made 20 families who needed a hand up pretty happy this week. He partnered with Nissan South, a car dealership in Atlanta, to give away 20 cars to folks in need as part of his own stimulus package.

The giveaway worked like this: to qualify for the free cars, contestants submitted an essay to Ludacris’ Foundation. Applicants were asked to write a one page essay on why they feel they deserve the car. To qualify, applicants had to be at least 18 years old, have a valid GA drivers license and not currently own a car.

Roberta Shields, President of The Ludacris Foundation, explained: “This year we want to do something to help youth and families manage during these tough economic times. Having a vehicle to get back and forth to work and daycare can make the difference in getting and keeping a job.”

More than 4000 folks vied for the used vehicles, which also included free gas for 30 days. The winners were responsible for the rest: tags, registration, insurance and – yes – taxes. After the winners of Oprah’s car giveaway learned the hard way, Ludacris made it clear on his website that winners were responsible for paying any applicable taxes.

The winners of the cars were visibly moved. Crystal Beauford, a single mom and college student, used to ride two buses to get to work. Now the proud owner of a used Saturn Ion, she said, “This is going to help me out so much,” she said. “It’s a blessing.”Similar Posts:

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Though the health care reform bill has officially been tabled until after the break, there is still work to do in Congress before a vote can be scheduled. At the top of the list? Find a way to pay for the bill.

The Senate Finance Committee has considered a number of funding options but nothing seems to generate the right balance of Congressional and, more importantly, taxpayer support. But they keep trying.

If only they could think of something to tax that could be spun as promoting health…

Yes, you guessed it. The so-called “soda tax” is now back in the picture.

The soda tax (which failed when proposed in New York) has been proposed in the House and Senate as a potential revenue generator to pay for health care reform. The tax would be a 3 cent surtax on soda, energy drinks and “other” sugary drinks (various proposals have included taxing, for example, certain kinds of juices). The Congressional Budget Office estimates that the increase would generate $24 billion over the next four years. If you’re doing the math, that works out to 200,000,000,000 drinks per year (or 800,000,000,000 over four years). Yeah, we in America love our sugary drinks.

And it’s clearly what’s making us fat. At least that’s what Congress is hoping we’ll believe. The bill to tax these drinks is being pitched as part of a strategy to help Americans “lower consumption of sugary drinks” and therefore, improve your overall health.

The argument has some weight (*clears throat*) behind it. A New England Journal of Medicine article published in April argued that sugary drinks “may be the single largest driver of the obesity epidemic.” The article goes on to say that “interventional studies show that reduced intake of soft drinks improves health.”

So, the theory goes, soft drinks are “bad” and raising taxes on them would be “good.” The revenue from the tax would help pay for obesity-related health spending, which reached $147 billion last year. In fact, research shows medical spending averages $1,400 more a year for an obese person than for someone whose weight is considered to be normal. Keep in mind, though, that those numbers include spending on diabetes and heart disease, which are considered to be “more common” in obese persons but not always connected to weight.

Basing their research on increases in taxes on tobacco products, scientists at Yale believe that higher prices for soda would result in reduced consumption. Estimates vary as to the actual drop in demand, but the initial research suggests that for every 10% increase in price, consumption would decrease by 7.8%. Those that stop drinking soda and sugary drinks would then switch to healthier drinks, which would result in less weight gain and therefore, fewer health problems (and costs).

Voila! Problem solved!

Only maybe it’s not so black and white.

Statistically, it is the poorest Americans who are continuing to pack on the pounds. Research suggests that while rates of obese adults are leveling off for some, the rate is not decreasing for poorer Americans. A tax increase would hit those Americans the hardest – but would it change behaviors?

Maybe not.

In 2008, the New York Times reported that food and beverages made up about 15 percent of the average person’s spending. Spending on soda represented about .3% of a person’s overall budget in 2008, statistically, fairly insignificant. And while the cost for soda remains relatively low, the cost of many healthy foods increased last year; the cost of eggs, for example, increased at a rate of more than 15 times that of soda. In 2009, the price index for fruits and vegetables increased more quickly than that for soft drinks or sweets (Source: Bureau of Labor Statistics). In other words, eating healthy is expensive (nothing new there) and making it more expensive to consume less healthy treats won’t necessarily make people more healthy. It may just make people more poor.

The American Beverage Association, agrees (no surprise there). They have consistently argued that the tax would affect poor Americans the most. In response to the ramped up rhetoric on the tax, the association has formed a coalition called Americans Against Food Taxes in opposition to the tax. The coalition claims that education, not taxation, is the answer to America’s obesity problem. They cite studies which indicate that “the sensitivity of individuals to changes in relative food prices is not sufficient to make ‘fat taxes’ a viable tool to lower obesity.” In other words, they argue that taxing soft drinks won’t make us more healthy.

So which is it? Will a soda tax fit society’s ills? Or at least put a dent in it? I’m not convinced that it will.

Besides, if you believe Coca Cola, you can’t tax soda! It brings both Democrats and Republicans together, remember?

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