The financial mishaps of wealthy celebrities always intrigues me. How can someone with millions of dollars end up in debt? This is exactly what happened to the famed rapper Nelly. I myself am a big Nelly fan and grew up listening to a lot of his hit songs. If you are reading this and have no clue who this Nelly character is, ask your child or grandchild and they can fill you in. I actually recently attended a Nelly concert at Summerfest, and while it was obvious his talent was diminishing, I had no clue his bankroll was also on the down slide.

The IRS ‘Grillz’ Nelly With A $2.40 Million Tax Lien

Yes, you read that right, he owes the IRS a whopping $2.40 million. I would be willing to bet that he had no idea he was behind in tax payments. Many times celebrities entrust their financial people to handle all financial matters for them and to make sure everything is paid for. Well, Nelly’s tax guy wasn’t keeping up with those estimated tax payments. The tax lien that the IRS imposed means that they are going to start taking his assets if he does not settle this debt. The IRS can impose a tax lien when they have tried to collect past due taxes, but have not received any response.

What To Do If You Receive A Tax Lien

Tax liens don’t only happen to celebrities that owe millions of dollars, it happens to many taxpayers across the country that owe amounts generally above $10,000. I’m sure you have heard radio or TV commercials from the national companies claiming they can settle IRS tax debt for pennies on the dollar. In most cases, this is a lie, and just a ploy for you to give their 1-800 number a call. Many of these companies have been reported for taking clients’ money and not completing the work they said they would do for them. We work with our clients throughout the whole process and provide an in-person meeting so that they know who they are working with the entire time. As Enrolled Agents, we are able to talk to the IRS on behalf of our clients and try to reach a settlement. To find out some ways that we help people out with tax debt, visit that section of our website  http://hammernikassoc.com/irs-representation/tax-resolution/  .

So, What’s Next For Nelly?

Nelly fans across the world are trying to help their beloved rapper out by streaming his songs. Spotify reported that in the last week, his songs are up 200%. However, there will need to be a lot of songs streamed to make up that amount of debt. Songs will need to be streamed between 4-5 million times to accrue the $2.4 million, and that does not even account for the share allotted to his record label, producers, etc.

Regardless, Nelly better hire a good tax professional to represent him in negotiation with the IRS, or they are about to make it hot in herre for him.

If you, or somebody you know, needs help with IRS debt, please contact our office at 414-545-1890 . We help people in Milwaukee, Waukesha, Brookfield, New Berlin, Wauwatosa with tax debt and liens.

The first step in getting back to solid tax standing is to stop the bleeding. We are here for you to set up a game plan to get rid of that tax debt once and for all.

Have a great weekend!

Nicholas Hammernik, EA

The post Nelly’s IRS ‘Dilemma’ appeared first on Talking Tax to Milwaukee.