Mike Sorrentino, known as “The Situation” on MTV’s Jersey Shore, is facing 11 years in prison on tax fraud charges. From Lauryn Hill to Nicholas Cage, see stars who tried to escape the tax man.
Supermodel Bar Refaeli is under investigation in her native Israel over allegations that she evaded paying local tax on earnings from her international career.
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Former Jersey Shore star Mike “The Situation” Sorrentino, seen here at the 2011 American Music Awards, pleaded not guilty September 24, 2014, to failing to pay taxes on nearly $9 million in income. New Jersey federal prosecutors have charged the reality TV personality and his brother with conspiring to defraud the United States and filing false tax returns for the years 2010 through 2012. Sorrentino was released on a $250,000 bond; he faces up to 11 years in prison and $600,000 in fines. “The situation will sort it out,” he said as he left U.S. District Court in Newark.
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Domenico Dolce and Stefano Gabbana of Dolce & Gabbana were found guilty in 2013 of not paying $540 million in taxes on $1.3 billion in income. The duo each received a 20-month sentence, but it’s unlikely they'll have to put their luxurious lives on hold if they opt to pay a €500,000 fine instead.
You can hide from the spotlight, but not from the IRS. Singer Lauryn Hill was charged in June 2012 with failing to file tax returns for three years during which she made more than $1 million. Hill, who has won eight Grammy Awards, failed to report her income to the IRS in 2005, 2006, and 2007. Hill became a star in the late 1990s with her hit album The Miseducation of Lauryn Hill, and then retreated from the public eye to raise her six children. Most of her wealth comes from recording-industry royalties.
She could probably have gotten away with blaming the accountants once, but twice? According to court documents filed in Los Angeles on Feb. 13, 2012, Lindsay Lohan has failed to pay her taxes for the second year in a row. The latest evasion—for the 2010 tax year—adds up to $140,203.30, which piles on top of the $93,701.56 she failed to pay in 2009.
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Pamela Anderson was among the 250 Californians who made the state’s delinquent taxpayer list for 2009. According to the California Tax Franchise Board, the 42-year-old Dancing with the Stars contestant will not be able to waltz away from the $493,144 lien against her. The tax bill adds to Anderson’s financial woes: In September 2009, People reported that she owed more than $1 million to construction companies for work they did on her home. Anderson admitted that there were disputes about payments but denied that she was nearing bankruptcy.
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In late 2009, the National Treasure star was charged by the IRS for failing to keep up with his taxes in 2007 and put several homes up for sale to make up the difference. Originally, Cage owed the IRS $6.3 million, but in January, he told People that the figure is actually an astonishing $14 million. "However," Cage added, "I am under new business management and am happy to say that I am current for 2009, all taxes will be paid including any to be determined state taxes."
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The Blade star was charged with federal tax fraud and conspiracy in 2006, amid charges by the government alleging he did not file tax returns from 1999 to 2004. His excuse, released in a statement at the end of 2006, was that he was a “non-resident alien” of the United States. Snipes was found guilty of three misdemeanor counts and was sentenced to three years in prison. He is appealing the decision, but must pay up to $17 million in back taxes, plus penalties and interest.
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When the average Joe fails to pay his taxes, there’s a chance no one will notice. But when the average Joe wins a million bucks on a reality show—as Richard Hatch did on the first season of Survivor—it’s usually wise to take a trip to a CPA. After Hatch failed to pay any taxes on his $1 million prize, he was convicted and sentenced to 51 months in prison in 2006, until his release in early 2011. He went back to jail later that year on additional tax return charges, serving nine months. Hatch was released in December of 2011.
It’s far from the massive sums other celebrities owe, but last year famed photographer Annie Leibovitz was accused of owing $135,916 in back taxes in New York. That’s chump change when compared to the $15.5 million she borrowed in February of this year to pay off her debts.
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Ah, irony. In 1931, the world’s most infamous mobster was indicted for tax evasion, and, after a lengthy and scandal-ridden trial, was convicted and given an 11-year sentence, most of which he spent in Alcatraz. Capone was paroled early, in 1939, and never again rose to the heights of crime for which he was renowned.
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Joe Francis, the impresario behind Girls Gone Wild, was indicted in 2007 for two counts of tax evasion, with Francis allegedly claiming $20 million in false business deductions for his various companies. In an example of how long these trials take to conclude, Francis pleaded not guilty in 2008, and was arrested in early 2009 for failing to appear on time at a pretrial hearing. His trial has been rescheduled to begin August 17.
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The youngest Baldwin sibling filed for bankruptcy last month after owing more than $1.19 million on two mortgages, and for falling behind on $749,974 of his taxes, dating back to 1999.
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The New York hotel mogul was convicted of federal income-tax evasion in 1989. During the sensational trial, one of her housekeepers claimed she overheard Helmsley, nicknamed the “Queen of Mean” once say, "We don't pay taxes. Only the little people pay taxes.” Helmsley served 18 months in prison, a significant reduction from her 16-year sentence, and was forced to let go of her iron grip on her hotel empire because convicted felons are not allowed to have alcohol licenses. She died in 2007 with a $2.5 billion fortune, and left $12 million to her Maltese dog, Trouble.
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The Wizard of Oz star failed to pay taxes in 1951 and 1952, and after her variety series The Judy Garland Show was canceled in 1964, she was $4 million in debt to the IRS and her home was repossessed. A mere five years later, after her health deteriorated, Garland died of an unintentional overdose.
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Back taxes are, by far, the least of Simpson’s problems, but in 2007 the state of California placed him near the top of their worst tax offenders list, claiming he owed $1.44 million. Since he’s currently in a Nevada prison serving a 33-year sentence on armed robbery and kidnapping convictions, it’s unlikely the former football star will be able to pony up the cash.
Jennifer Lopez’s husband apparently didn’t file taxes from 2000 to 2004, during which time he earned $15.5 million. In 2007, Anthony was ordered to pay $2.5 million in back taxes, but was not prosecuted because he believed his accountant filed the proper forms (a person must show intent to cheat on their taxes in order to be prosecuted) and the charges were dropped after he paid the taxes in full.
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The comedian also topped California’s list of top tax evaders in 2007, owing more than $2.1 million in charges dating back to 1999. The Jingle All the Way star could make a deal with the Franchise Tax Board to be removed from the list, which is published to essentially shame the evaders into paying their bills.
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Warwick kept good company with Sinbad and O.J. Simpson on the top 250 list of tax evaders in California, where she owed more than 2.6 million in personal income taxes in 2007. Two years later, the singer still owes $2.1 million, but her publicist says she is paying off the debt.
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Baseball’s all-time hit king was charged in 1990 for filing false income-tax returns, after conveniently leaving out his income from autographs, selling memorabilia, and his horse-racing winnings. Rose spent five months in prison, paid back over $366,000 in debts, and performed 1,000 hours of community service.
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The legendary silent film star owed $28,000 to the government after he stopped paying his taxes in 1933. Plagued by alcoholism and bumps in his career, Keaton was committed to a sanitarium until he finally pulled his life together, although his career never rebounded to its earlier successes.
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The country crooner was dinged by the IRS for $16.7 million in 1990. After his assets were seized, Nelson scrambled to record albums to pay back the debt—even titling one “The IRS Tapes: Who’ll Buy My Memories?” All of his debts were paid by 1993.
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Already a well-established star at the time, the Italian sex symbol served 17 days of a 30-day sentence in a Naples prison in 1982 for tax evasion. The charges were related to allegations that her husband, Carlo Ponti, underpaid his taxes in previous decades.
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Bud Abbott and Lou Costello were a top-10 box-office draw during the 1940s and ‘50s, but in 1956 the two were charged for back taxes and were forced to sell most of their possessions, including their film rights. The IRS may have been responsible for their breakup—the “Who’s on First?” creators dissolved their partnership in 1957.
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