Movie Critic Elvis Mitchell Owes IRS Approximately $500,000

According to news reports, the IRS has filed liens totaling $505,113 against former New York Times film critic Elvis Mitchell. Mitchell, who is now a host on Turner Classic Movies’ “Under the Influence,” was caught by U.S. border patrol guards last year with $12,000 in undeclared cash. He was quoted as saying, “I have a fear of banks, so I keep my cash in my house and I grabbed the wrong box.”

Mitchell isn’t commenting on his current situation, but internet pundits are speculating on how long he must have gone without paying taxes to accumulate that much tax debt, considering that film critics aren’t among the highest-paid celebrities.

If you owe back taxes but have been flying under the IRS’s radar, now is a good time to consult a tax professional about getting in compliance—meaning get your tax returns filed and your taxes paid. Don’t wait until you get caught.

“Girls Gone Wild” founder Joe Francis pleads guilty to filing false tax returns

According to news reports, “Girls Gone Wild” founder Joe Francis has pleaded guilty to two misdemeanor counts of filing false tax returns and one count of bribing Nevada jail workers in exchange for food. The plea deal will allow him to avoid further jail time in a tax case that spanned two states and several years. In the agreement, Francis acknowledged omitting nearly $563,000 in interest income on his 2003 tax return.

When you sign your tax return, you are accepting responsibility for the accuracy, completeness, and truthfulness of what you reported. And if the IRS determines that you intentionally included or omitted information that fraudulently reduced your tax obligation, you could be in trouble.

The lesson here is simple and clear: Tell the truth on your tax returns. And don’t accept advice from anyone who tells you otherwise.

Pro Golfer Jim Thorpe pleads guilty to tax evasion

As expected, professional golfer Jim Thorpe pleaded guilty yesterday (Sept. 22, 2009) in Orlando federal court to two counts of tax evasion. The maximum sentence for each count is a $25,000 fine and a year in prison. He also agreed to pay more than $2 million in back taxes.

Thorpe reached a plea agreement after being charged in February with seven counts of failing to file income tax return and failing to pay income taxes. The sentencing date was not set; Thorpe’s attorney said he anticipated sentencing in January. In the meantime, Thorpe is heading back to the Champions Tour.

I don’t know why Jim Thorpe failed to file tax returns or pay his taxes. I do know that the reasons of the more than a quarter-million clients that have turned to JK Harris & Company for help over the years range from major business, financial and/or personal crises to simple procrastination. I also know that the longer you wait to deal with a delinquent tax situation, the worse things will get.

In terms of dollar amounts and criminal prosecution, cases like Jim Thorpe’s are a miniscule percentage of the total number of delinquent federal tax cases that the government is dealing with. But the government will still aggressively pursue collection activity and the only way to resolve the situation is to address it by getting yourself in compliance with the law and reaching a payment agreement of some sort with the IRS. If you’re in this situation, the resolution process will not be pleasant, but once you get through it, you’ll be glad it’s over. Allow the licensed tax professionals and case specialists that are part of the JK Harris tax team to help.

Golfer Jim Thorpe reaches plea agreement on tax-evasion charges

According to a recent news story, professional golfer Jim Thorpe is expected to plead guilty to two counts of failure to pay income taxes at a hearing in Orlando federal court on Sept. 22, 2009.

Thorpe, a more than ten-time winner on the Champions Tour, is accused of failing to file income tax returns and failing to pay more than $1.5 million in federal income taxes over a three-year period. Under the plea, he faces up to one year in prison, probation, and a fine.

Most people who get behind on their taxes don’t owe the millions of dollars that Jim Thorpe does. And the IRS files criminal charges in only a very small percentage of cases—typically high dollar, high profile situations, where the government feels it can make a case that the taxpayer demonstrated intent to cheat the government.

Even though most delinquent taxpayers are not likely to be the subject of criminal prosecution, the IRS takes the issue of delinquent taxes very seriously—whether you owe a few thousand or hundreds of thousands of dollars. If you have not filed tax returns and/or have failed to pay your taxes, you need to take action now. The longer you wait, the worse the situation will become. The licensed tax professionals and case specialists that are part of the JK Harris tax team can help you get on top of the situation, no matter how much you owe.

United Way Day of Caring at JK Harris

Once again, I am proud and honored to see employees and members of our JK Harris tax team reaching out to help others who need it. Since JK Harris announced its partnership with Trident United Way this summer, our employees have been working on our pledge campaign, as well as preparing for a day of volunteer work, with United Way’s Day of Caring.

United Way has been sponsoring the annual Day of Caring since 2001. Locally, Trident United Way has the honor and privilege of playing host to the nation’s largest Day of Caring. This day is set apart for organizations needing assistance to partner with groups of volunteers who bring in the manpower, tools, and donations, if necessary, to complete the requested project.

The volunteer committee at JK Harris chose three projects to work on for today. We sent two small groups of employees out to local elementary schools. Half of these employees will spend the day reading and talking to children, providing them one-on-one attention and sharing their own personal favorite childhood books and stories.

The second group of volunteers is going into a school that wanted to refurbish a classroom and turn it into a science lab. The school did not have the resources or manpower to do this on its limited budget, so they submitted their project to United Way. JK Harris employees will spend the day cleaning organizing and painting a space mural in the lab, which will be enjoyed by children for years to come.

Due to the nature of our business we cannot let all of our employees spend the day volunteering outside the office, so we chose a third project to be done inside the office. The volunteer committee selected the Pajama Project so that employees who could not leave work could still help out in a big way. The Pajama Project has a local Charleston chapter, which donates books and new pajamas to children who are going into foster homes or are waiting to be adopted. Their goal is to provide something of comfort in a time of uncertainty for these children. It certainly moved all of us – as of last count, we had 120 pairs of pajamas and 115 books – and the donations continue to roll in today.

Since our hours revolve mostly around the hours of the IRS, we cannot let all of our employees participate frequently in outside volunteer work. But, I know that our employees get a lot of personal satisfaction from helping their clients on a daily basis. A big thank you to all our JK Harris employees. Thank you for your generosity, your hard work and for giving on the job and as well as in the community.