Celebrities
arelike the rest of us -- they hate paying taxes,
too! The difference is that when we mere mortals get caught
dodging the IRS, Perez Hilton doesn't blog our names through
the mud.
The latest national treasure to fall victim to a public
personal-finance shaming is actor Nicolas Cage who, according
to
Peoplemagazine (perhaps the most reliable source for
fact-checked celebrity gossip), owes the IRS $6 million in
unpaid taxes from 2007 and more than $350,000 for back taxes
from 2002 to 2004.
Cage's financial woes, according to his suit, stem from
bad financial advice -- speculative real estate investments
and shoddy accounting -- from the person who was his business
manager from 2001 to 2008.
Cue $20 million lawsuit
Cage is suing his former business manager, Samuel J.
Levin, on charges of mismanaging the actor's assets and
gouging him for several million dollars in management fees --
Levin's 5% cut of Cage's gross earnings.
It's so hard to find good help these days: Cage's suit
against Levin cites professional negligence and breach of
fiduciary duty. According to the lawsuit: "He [Cage] is now
forced to sell major assets and investments at a significant
loss and is faced with huge tax liabilities because of
Levin's incompetence, misrepresentations, and recklessness."
The biggest boo-boo: Failure to file his client's income
taxes.
Sure, it's tempting to "tsk-tsk" Cage about failing to
keep tabs on the hired help. But even due diligence might not
have saved him from financial calamity. According to the
Huffington Post, Levin had no disciplinary actions against
him in the 25 years he has been a licensed certified public
accountant in California.
Of course, neither did Bernie Madoff.
I'll pause here for dramatic effect.
The mother of all celebrity yard sales
Now the star of
Leaving Las Vegas(for which he won an Oscar),
National Treasure,
Con Air, Adaptation,
Moonstruck, and my personal favorite,
Raising Arizona, is having a celebrity-sized yard
sale. Literally.
To drum up cash to pay his tax tab, Cage is offering a
real estate free-for-all. Well, not
free, exactly, but according to CNN, some of the
choice items up for offer include:
An early-bird shopper already snagged one choice item:
Cage sold his Bavarian castle -- 28 rooms on 395 wooded
acres; needs renovations -- to German lawyer Konrad Wilfurth
for $2.5 million. Continued... |