Pamela Anderson hit with a pair of tax liens

Pamela AndersonPamela Anderson is in the news again but not necessarily for the reasons she hoped. The former Baywatch babe and Playboy model had hoped to cause a stir upon the release of her new pop song, "High" in early 2010 (the song is co-produced by fashion, um, designer Richie Rich). Instead, she's making headlines for high... tax liens.

WalletPop previously reported on Pam's money woes in October, which were allegedly related to construction problems at her dream home.

The actress tried to downplay concerns about her finances in the press, saying, "Mistakes may have been made in calculating taxes owed and we are now in the process of ensuring that any taxes owed are paid."

Those mistakes have led to a pair of problems for the actress. The IRS has filed a $1,700,173 lien against Anderson with the Los Angeles County Recorder of Deeds. Earlier this year, the state of California filed a $252,360 tax lien against her in Los Angeles.

A federal tax lien can only be filed by the IRS after the tax is assessed; a Notice and Demand for Payment is mailed; and the taxpayer neglects or refuses to fully pay the debt. If payment isn't made after 10 days of receipt of the notice, the IRS files a tax lien for the amount of the debt. The lien attaches to property (such as Pam's house) and puts other creditors on notice.

State tax liens generally operate in the same manner.

Despite the liens and rumors about her finances, the 42-year-old mother of two swears she'll be fine. She's weathered storms before, including a number of divorces, spousal abuse and a hepatitis C diagnosis.

The not-so-naturally blonde bombshell first made news in 1989, when she modeled for Playboy magazine. She has since made the cover of a number of magazines and was named by the Guinness Book as the world record holder for being the "most down loaded" star.

Sweet Child of Mine: Tax Credits for Parents

Parents may qualify for helpful tax breaks on everything from child care to educational costs and even supplies, in some cases.

Read More

Brought to you by TurboTax.com

A Guide to Paying Quarterly Taxes

As a small business owner or freelancer, you’ll find that mastering your quarterly taxes is a key part of running a successful company. Here’s a closer look at how quarterly taxes work and what you need to know when filing your tax returns.

Read More

Brought to you by TurboTax.com

Myths About Quarterly Taxes for the 1099 Tax Form

For those Americans who pay quarterly taxes—or those who don't, but who think they should—understanding the rules governing estimated taxes is vital.

Read More

Brought to you by TurboTax.com

How Short Sales and Foreclosures Affect Your Taxes

If you engage in a short sale or your mortgage lender forecloses on your home, there are some important tax implications that you'll want to consider.

Read More

Brought to you by TurboTax.com
Read Full Story
Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.