OJ Simpson Adds Tax Controversies To His List Of Financial Troubles

Some people in the Washington, DC, area probably breathe a sigh of relief after the statute of limitations passes for past tax liability. However, taxpayers must also realize when filing a return — or failing to file a return for that matter — that they are not necessarily off the hook for an audit.

In fact, there is no statute of limitations against a tax audit if the IRS suspects fraud or some other tax crime. This means that area taxpayers who are suspected of tax evasion or tax fraud can remain subject to an IRS audit for all tax years. In other words, all tax returns will remain open and subject to tax examination by the IRS indefinitely. If the IRS determines that a tax liability is owing, the amount will be compounded by interest and penalties on the amount of the deficiency.

This is the situation that OJ Simpson is currently facing. In addition to a nearly $180,000 tax lien imposed by the Internal Revenue Service for a tax controversy for the years 2007-2010,Simpson has also recently been faced with a lien on his assets for tax amounts owing to the state in which he resides going back 12 years, to the tax year 2000.

Of course, OJ Simpson is a high-profile taxpayer whom the government has been seeking money from for some time. However, the IRS and state taxing authorities are aggressive in their pursuit of tax evaders, or anyone whom they suspect has committed a tax crime, including the submission of false documents, failure to file and making false statements to the IRS.

Source:New York Post, “OJ slapped with tax bill, owes $300K to California,” Nov. 14, 2012

Tags: Blog, Tax Controversies