A Round of Applause for Charlie Sheen’s Tax Team May Be in Order
This summer, actor Charlie Sheen announced that he’d beaten the IRS at its own game, marking this our first terror tale where the IRS wasn’t #WINNING. The agency grudgingly agreed to reduce his back tax debt from $7 million to $3.3 million.
How did the “Two and a Half Men” star do it? Well, he had an excellent tax resolution team behind him.
According to Forbes, the ordeal started when the IRS went after Sheen for back taxes from the years 2015, 2017, and 2018. Sheen’s debt totaled roughly $7 million, and he quickly entered negotiations with the IRS to reduce it. The actor offered first $1.24 million, then $3.1 million as an offer in compromise. But the IRS turned him down both times — the second time after he sent in a $626,000 down payment.
From there, things only got rockier. Sheen’s case bounced from IRS office to IRS office, and the agency refused his proposal of an installment agreement. Ultimately, the case ended up in tax court, where Sheen and his team won the eye-popping reduction to $3.3 million offer in compromise.
There’s only one downside to Sheen’s win: He signed an income collateral agreement. That means if he lands an Oscar-worthy acting role with a multimillion-dollar payout in the near future, the IRS “has a right to revisit the compromise and get some of that uptick in income,” according to Forbes.
Overall, though, Sheen’s case is a fantastic example of tax resolution work done right.
McCauley Law Offices may not have tiger blood, but we can help you out of your Tax Jam and make you a success story. Contact us today for a free consultation and let us get the IRS off your back.