Excerpts from a news article posted by Robert Snell of the Detroit News on Monday, May 20, 2010 at 12:32 pm, read: “Golf star John Daly may have slimmed down, but he’s got a big, fat tax debt. The chain-smoking, beer-swilling Hooters patron and reality-show star owes more than $1 million in delinquent federal income taxes, according to public records. Daly, 44, won the 1991 PGA Championship and 1995 British Open but his career has been plagued by personal problems.
Though Daly has earned more than $9 million during his career, he made only $248,501 on tour in 2007 and $56,017 in 2008. The IRS filed a $1,050,733 lien against Daly on Monday with the Shelby County (Tenn.) Register of Deeds. According to they lien, he owes income taxes from 2007 and 2008. The address on the lien is his home in Memphis, Tenn. It is for sale for $698,000. A Daly spokesman could not be reached immediately for comment.”
Many of you who live in or around Memphis, Tennessee, may have recognized this article, but even famous sports stars like John Daly can have trouble with their taxes. Taxation within the United States is a complex system and includes a wide array of taxation entities. There are a variety of governments that can tax you. They include: taxation from local governments possibly including one or more of municipal, township, district, and county entities; regional entities such as school, utility, and transit districts; state governments; and the federal government. Each of these government entities have their sets of complex laws, so, it is very hard for the average citizen to go through life without having some type of taxation problem. Being famous may even make you a tax target.
To complicate matters even further, within each government entity, there can be a variety of different sources used to tax you. You can pay tariffs, sales tax, income tax, recessive taxes, social security taxes, property taxes, progressive taxes, unemployment insurance taxes, corporate taxes, excise taxes, estate taxes, transfer taxes, gift taxes, and this list is not conclusive . Is there any wonder that a legion of bookkeepers are hired by the private and public sectors just to keep up with the various taxes in order to help alleviate the problems? Also, with so many different sources of taxation and entities you must annually satisfy, is there any wonder that mistakes are made? Are these complications made by our lawmakers for a reason?
For the most part, most of these government entities will try to help you alleviate the mistakes by providing you with educational material through free publications, websites, and call help centers. Most will help you figure the math on what you owe and will work with you in wide variety of ways. In the event you do have problems, you still have legal rights. The Taxpayers Bill of Rights III was enacted July 22, 1998 for the purpose of protecting your rights as a taxpayer under federal law. One of the most important rights you have as a taxpayer is the right to representation before any taxing entity. With all the complications and different laws for each individual taxing entity and sources, do you think it would be wise to have help in facing tough taxing issues? I bet if you asked sports star John Daly that question, he would say yes without any hesitation.
So, it doesn’t matter whether or not you are famous sports star or an average person, you have to pay taxes, but you do not have to get ripped by the taxing entities in doing so. The real question should be then, what is your fair share of taxes within each taxing entity? Each individual taxpayer will have to answer that question for his or herself. If you live in or around the area of Memphis, Tennessee, stop allowing the taxing authorities to rip you on what is too complicated for you to understand. Contact us today and we will get you in touch with a tax professional in your area who will be able to help you answer all the questions you may have about tax law.