Musicians, actors and sports stars sometimes make news when they run into issues with the Internal Revenue Service. On this blog, we have discussed tax liens filed against celebrities, such as Lionel Richie, Sinbad and Lindsey Vonn.
Reportedly, former NFL player Kordell Stewart is the most recent celebrity to face a serious tax lien. Allegedly, he failed to pay his state tax bill and owed the State of Georgia $8,532 in unpaid taxes from 2012. With interest and penalties, the outstanding balance climbed to more than $13,000.
If he fails to pay the taxes owed, he could lose his home or money in bank accounts. The government placed a levy on his assets, which allows the government to seize possessions and sell them to recover the money owed.
This case illustrates how quickly interest and penalties can increase a tax balance owed. It also raises the question: How do you deal with a tax lien?