I hear from people every week who think their tax problem is the end of the world. It usually isn't. I'm Darrin Mish. I've resolved over $100 million in tax debt for clients. Here's what you should know.
Actress Zsa Zsa Gabor Owes the IRS $118,000
The IRS recently confirmed that Zsa Zsa Gabor and her husband Frederic Von Anhalt are working out a payment plan for taxes owed amounting to $118,321. According to Gabor’s lawyer Chris Fields, this amount is primarily due to investments made by third party investors on behalf of the actress into the fraudulent Ponzi scheme run by Bernard Madoff.
On Oct 5, the IRS filed a lien of more than $118,000 for the tax years 2001 and 2002 against the 92 year old Gabor at the Los Angeles County Recorder of Deeds. Gabor’s lawyer estimated that the actress suffered losses of about $7 million in Madoff’s Ponzi scheme and this has resulted in the overdue tax bill.
Supporters of Gay Marriage Opposes Tax-exempt Status of Churches
In Maine, more than 75,000 gay rights supporters joined together in protest over churches’ role in the repeal of gay rights legislation. In May, Governor John Baldacci signed into law legislation that legalizes same sex marriages. This sparked a strong protest by churches in the area that came up with a concerted campaign called Question One rejecting the law. Church leaders urged congregation members to give sacrificially towards the cause, handed out collection plates and signature forms during services.
As a result, 53% of people rejected the law and it was subsequently repealed last week. This in turn prompted Maine Marriage Equality, a gay and lesbian organization, to voice their protest against the churches’ actions. The organization compiled and made public a list of the churches and major contributors that supported the Question One campaign.
Maine Marriage Equality also seeks a revocation of the churches’ tax exemption status citing the principle of separation of church and state. They have taken their cause online and are urging their supporters and gay rights advocates to file a complaint with the IRS against the churches.
But the Alliance Defense Fund has risen in defense of the churches, as it has done on separate occasions before. Its Senior Legal Counsel Erik Stanley states the ADF’s contention that it is the churches’ right to voice their opinion on Biblical issues and oppose same sex marriages directly supporting legislative matters like Question One. The tax exempt status traditionally enjoyed by churches should not be called into question.
The ADF is offering free legal support for any churches that are questioned by the IRS regarding their tax exemption status because it believes that the churches have not transgressed IRS rules in this matter.
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