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Tax evasion has been common in Hollywood for the past few decades. From actors and musicians to sports players, nobody has been able to get away from the IRS and government for a long time. The accusation can lead to a violent media spectacle, from celebrities getting followed to having their movements printed in tabloids, earning publicity for their evasion. As the IRS has a conviction rate of 90%, stars often find themselves at the mercy of the court decision. The resolution of any fraud is convicted in two forms: criminal and civil. Celebrities either have to serve a sentence in prison or pay back the government in back taxes.
A-listers have been chased by the IRS and state governments for sometimes filing false returns, showing discrepancies with the expenses, or failing to pay taxes. From Shakira being accused of not paying taxes to the Spanish government to Fat Joe serving a prison sentence, let’s look at the celebrities convicted of tax evasion.
Shakira
In 2022 Shakira found herself amidst an accusation from the Spanish government that the singer had not paid her income taxes between 2012 and 2014. According to the NY Times, it was reported that the singer purchased a house in Barcelona in 2012 and owed the government 14.5 million euros. Her representation has claimed that Shakira did not live in the country, but she could face eight years in prison if convicted.
Lauryn Hill
Grammy winner Lauryn Hill was on the media circuit in 2013 when she was sentenced to three months in a low-security prison in Connecticut. The singer was accused of failing to pay her taxes from 2005 to 2007 worth $1.8 million. Upon her release, she was confined to her home for three years and later had parole supervision for a year.
Ja Rule
In early 2021, rapper Ja Rule and his wife, Aisha Atkins, were accused of owing $3 million in unpaid taxes to the IRS. It was claimed that they had not paid taxes for five years between 2005-2010 and again from 2012-2017. For his first account of unpaid taxes, the rapper spent 28 months in prison in 2011. In 2021, he paid off the $3 million with help from an associate to avoid jail time.
Nicolas Cage
2014 was challenging for Nicolas Cage as he starred in a string of low-grossing films. When he was one of the highest-paid actors in the world, Cage was known to have extravagant expenses. The same year he owed the IRS property taxes of $6.3 million, as noted by Variety. The actor took every role he got in VOD movies and paid off the government and his debtors.
Toni Braxton
While Toni Braxton declared bankruptcy twice in 1996 and 2010, she could not pay her taxes in 2019. Despite having most of her debt cleaned off after the bankruptcy, she owed the IRS and California State a sizable amount. She had ignored paying $340,000 to the IRS in 2017 and $116,000 to the State of California.
Martha Stewart
Before Martha Stewart faced jail time in 2004 for conspiring insider trading in her business, the media mogul found herself on the radar of the IRS in 2002. She was accused of not paying taxes for her mansions in East Hampton by the State of New York. Stewart had to pay $220,000 in penalties and back taxes.
Stephen Baldwin
Stephen Baldwin was arrested in December 2013 as he failed to pay taxes for three consecutive years, from 2008 to 2010. As mentioned by CNN, he pled guilty in court on the charge of failure to file taxes and was ordered to pay $300,000 as interest, penalty, and back tax payment.
Chuck Berry
Legendary musician Chuck Berry made a considerable fortune during his active career but was convicted of tax fraud in 1997 for a few hundred thousand dollars. Unable to pay his taxes, he pled guilty in court and was sentenced to give back $110,000 in taxes and serve 1,000 hours in community service.
Wesley Snipes
Best known for being the star of the Blade trilogy, Wesley Snipes was accused of tax evasion in 2010 for failing to file his returns in 2008. His appeal was denied in court, and he had to pay a fine of $5 million in back taxes. He was sentenced to jail time which began in December 2010, and the actor was released in April 2013.
Fat Joe
Rapper Fat Joe pled guilty in court to failing to pay his income taxes for two years in 2007 and 2008. He owed the government $1 million and turned himself in for further proceedings. He was initially ordered two years in prison which was later reduced to 4 months, and had to pay a $15,000 fine, as stated by the LA Times. The rapper was also on supervised release for a year.
Other celebrities who have faced the problematic consequences of tax evasion include Al Capone, Judy Garland, Willie Nelson, Pete Rose, and Tim Geithner. These celebrities have been served harsh sentences and penalties, which also become a lesson for others to pay their taxes on time and avoid negative repercussions.