Zsa Zsa Gabor owes IRS $118,321

After losing about $7 million in Bernie Madoff's Ponzi scheme, 92-year old Zsa Zsa Gabor now has the IRS to deal with.

On Oct. 5, the IRS filed a lien for $118,321 for the years 2001 and 2002 with the Los Angeles County Recorder of Deeds.

According to The Associated Press
, "Gabor lawyer Chris Fields estimates that Gabor lost about $7 million in Madoff's Ponzi scheme and the tax bill is part of the fallout. Fields says third-party money managers invested Gabor's money with Madoff."

How losing money in 2008 would lead to additional taxes being owed for 2001 and 2002 is a bit of a mystery to me. It's possible that she was trying to work out her tax issues with the IRS but with the losses to Madoff, no longer has the money to pay her back taxes.

When the Madoff fraud was first revealed, Gabor's husband, the 64-year old Frederic Prinz von Anhalt, lamented that the couple "might be forced to sell our Bel Air home."

Hopefully the IRS will be lenient with the couple in light of the massive losses they sustained at the hands of Bernie Madoff.

Video: Can I E-File If I Owe Taxes?

Filing your tax return online can be extremely convenient. But did you know the IRS also allows you to make payments on taxes you owe from previous years? Watch this video to learn more about e-filing your taxes.

Read More

Brought to you by TurboTax.com

What is a W-2 Form?

A W-2 tax form shows the amount of taxes withheld from your paycheck for the year and is used to file your federal and state taxes. Here are the basics.

Read More

Brought to you by TurboTax.com

Tax Tips for Uber, Lyft, Sidecar and other Car Sharing Drivers

When you're a driver for a ride-sharing company such as Uber, Lyft, Sidecar, or other car sharing service, the most important thing to understand about your taxes is that you are probably not an employee of Uber, Lyft or Sidecar. Drivers for these companies are usually independent contractors, a fact that has tax implications, both at filing time and year-round.

Read More

Brought to you by TurboTax.com

Should You and Your Spouse File Taxes Jointly or Separately?

Married couples have the option to file jointly or separately on their federal income tax returns. The IRS strongly encourages most couples to file joint tax returns by extending several tax breaks to those who file together. In the vast majority of cases, it's best for married couples to file jointly, but there may be a few instances when it's better to submit separate returns.

Read More

Brought to you by TurboTax.com
Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.