This blog recently reported on the fact that two famous real estate professionals and reality stars were facing federal tax evasion charges which they adamantly denied. Their case with the federal government remains pending.
It recently came to light that the couple settled up a bill for back taxes with taxing authorities in another state. By all accounts, this settlement concluded a civil dispute with the state regulator. There was no report state-level criminal charges were in play.
The end result of the settlement was that the pair paid almost $150,000 to the state’s revenue collectors. The stars themselves described the settlement as highly favorable to them and a sign that the criminal allegations against them are overblown.
Indeed, one media outlet reported that, as part of the settlement, the state agreed that it owed the couple refund money, to the tune of over $65,000, for three years in which the couple overpaid the taxes. They acknowledge that they owed money for the tax year 2009.
This latest development in the stars’ ongoing case illustrates a couple of important points. For one, many times a New York family who runs in to a sticky situation with their taxes will have to deal with both federal and state authorities, often at the same time.
This can further complicate an already difficult legal situation. It is just one more reason why it is usually a good idea for a person accused of civil or criminal misconduct with respect to his or her taxes should consider retaining an experienced attorney for help.
The other thing to remember is that many times, a tax bill is not nearly as steep, or as serious, as authorities may think. Favorable settlements are possible.