IRS wants Sinbad to walk the plank

It's no laughing matter for Sinbad: the IRS is seeking to take his home.

The IRS has filed an action in court against the actor/comedian (whose real name is David Adkins) in partial satisfaction of taxes it says he owes.

The IRS has filed tax liens in the amount of $8.15 million in tax liens against Sinbad. The tax obligations range from $157,934 in 2003 to $2,358,563 in 1998. Penalty and interest continue to accrue for all years while the matter remains outstanding.



According to court documents, (downloads as a pdf) Sinbad filed an Offer in Compromise, called an Offer or OIC, in 2003 to resolve the liabilities for tax years 1998 through 2001. That OIC was rejected in 2004. Offers are typically rejected when the payment offered is too low or if the IRS otherwise believes that it can collect the full amount.

An OIC may also be rejected if the taxpayer is noncompliant at the time of filing (meaning that the taxpayer has failed to file tax returns for the current year or years which follow the period of the OIC).

A second OIC was submitted to the IRS in 2005 for the tax years 1998 through 2003. It was accepted by the IRS but Sinbad refused to comply with the terms.

Generally, failure to comply means that the taxpayer either failed to make timely payments as agreed to or failed to remain compliant with the IRS. Approximately six months after acceptance of the OIC, IRS claimed that Sinbad was officially in default and the terms of the offer were no longer good.

The court documents seeking seizure of the house were filed on Dec. 10. The filing noted that other creditors may exist, including JPMorgan Chase Bank, Franchise Tax Board for the state of California and Hidden Hills Community Association; each has been referred to as a "lien creditor" against Sinbad's property.

At one point, Sinbad reportedly had the third highest active tax delinquency in the state of California at $2,522,424.10 -- just above Dionne Warwick.

On Dec. 11, one day after the IRS papers were filed, Sinbad filed Chapter 7 bankruptcy in California, reporting a whopping $10 million and $50 million in liabilities and less than $50,000 in assets (the home that Sinbad lives in is owned by his brother, an arrangement the IRS believes to be a sham).

The 53-year-old actor got his start on Star Search -- he beat fellow comedian Dennis Miller in the competition. He went on to star in several TV and movie projects, including Bill Cosby's "A Different World," "Houseguest" and "Jingle All the Way." He is reportedly not active in any current major projects.

Should I Include a Dependent's Income on My Tax Return?

It may be easier and less expensive to include dependents' income on your tax return rather than have them file their own return—in certain circumstances.

Read More

Brought to you by TurboTax.com

Great Ways to Get Charitable Tax Deductions

Generally, when you give money to a charity, you can use the amount of that donation as an itemized deduction on your tax return. However, not all charities qualify as tax-deductible organizations. While there are many types of charities, they must all meet certain criteria to be classified by the IRS as tax-deductible organizations. There are legitimate tax-deductible organizations in many popular categories, such as those listed below.

Read More

Brought to you by TurboTax.com

Tax Tips After January 1, 2019

TurboTax gives you ten tax saving tips for the new year. Find strategies to lower taxes, save money when preparing your tax return, and avoid tax penalties.

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