Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.
Tax Day has come and gone, but for certain members of Hollywood’s elite, April 15 was just another Thursday. Too bad debt collectors and the IRS don’t see it that way. While these entertainers earn many times the average household income, they are learning now that a lack of financial knowledge can cost them — big time.
- Nicolas Cage. This Oscar winner isn’t winning any awards for money management: In January, the IRS came knocking for $14 million in back taxes, and the Bel-Air mansion he tried to sell for $35 million was just repossessed by the bank. But all that didn’t stop him from buying a pyramid in New Orleans last week.
- Pamela Anderson. Nothing can save this Baywatch star from the California Franchise Tax Board’s tax lien to collect $493,000 in unpaid state taxes. And that’s separate from the $1.7 million she reportedly owes the IRS.
- Nas. Last October, the rapper from Queens was hit with a tax lien of $2.5 million for unpaid taxes from 2006-7, as well as court-ordered alimony payments to ex-wife Kelis to the tune of $55,000 per month.
- Lindsay Lohan. The former child star hasn’t had a blockbuster hit in years, but she’s still spending like an A-lister. A snitch reported yesterday that Lohan has charged up $600,000 in credit card debt, and was nearly evicted from her apartment earlier this month for falling behind on her rent.
- Sinbad. This funnyman isn’t laughing now that the IRS has filed a civil suit against him for failing to pay taxes from 1998 to 2006. The lawsuit alleges he owes $8.2 million to the federal government, plus interest, penalties, and legal fees. And it gets worse: The U.S. Attorney General’s office demanded in February that he sell his $3 million home to make up part of the difference.
Want more? Check out our 8 Worst Celebrity Financial Mistakes feature.
