Charlie Sheen Sues IRS To Cut 2 ½ Men Size Tax Bill Down To Size

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Actor Charlie Sheen may be most famous for his TV role two and a Half MenBut now he’s hoping for a better role from the IRS. He owes the tax man millions, is exhausted by his collection efforts, and is trying to negotiate a deal with the agency. This story is not suitable for a screenplay, but it is a familiar one in Hollywood and almost everywhere. Tax bills mount, the IRS tries to collect with notices, liens, and levies, and it’s painful for everyone. There are two established ways to try to make a deal with the IRS. The agreement has arrangements and proposals for installment payment. Sheen has tried both, unsuccessfully. Getting an installment contract is easy, because the IRS isn’t deducting your bill, just getting paid over time. Proposals are tough to deal with. You owe the IRS a million, but offer them less, will they take it? That’s what Sheen did. If IRS figures can collect this full amount, it’s not easy to accept the offer. It is difficult to pin down Sheen’s total debt, but he is owed for 2015, 2017 and 2018. Its 2015 liabilities were $5.7 million. It appears that he originally offered $1,240,000 as a settlement, but later increased it to $3.1 million to cover all three years.

He even put $626,000 down with the IRS as a down payment on the deal, which was the required 20%. Now, Sheen can’t get it back. Sheen filed a case in tax court in 2018, arguing that the IRS had abused its discretion. Now, he has filed another, this time arguing that the IRS should not have The agreement rejected his offer. The lawsuit recounts a history of tort and says the deal was a good one, and did not receive a proper blow from the regional director of the IRS of Los Angeles.

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Sheen claims that his $3.1 million deal was approved by various people in the IRS. But then he says it was dismissed by the official without explaining his reasoning or giving Sheen an opportunity to voice his concerns. Now Sheen wants a separate IRS office to handle this, out of LA’s jurisdiction. And lest we forget about his 2018 tax case that is still pending, Sheen asked the judge to combine the cases into one. If you’ve ever dealt with the IRS, it’s easy to have some sympathy for Sheen. Their court papers are being switched from one IRS person to another in different parts of the country. Of course, some of the figures are startling. When he was trying to work out an installment agreement with the IRS, it came back saying the actor could pay $51,275 each month.

As for the proposal in a settlement figure of $3.1 million, the IRS said it felt it was three or four times its ability to pay. Presumably, some dispute over what Sheen should sell, and some exceed the value of the property. Sheen has a home in Beverly Hills, as well as other properties. None Wants The IRS has to ask the powerful tax collection agency for extra time to give, or to pay. But it happens to rich and famous people as well. A few years ago, Forrest Whitaker faced off with the IRS in court. He was only trying to negotiate an installment payment deal, but the IRS said he failed to follow their procedures. The Tax Court sided with the IRS, noting that Whitaker had failed to do what was necessary. Several times, the IRS asked for confirmation and yet Whitaker failed to provide it. After losing in tax court, Whitaker also appealed to the Ninth Circuit, which upheld the actions of the IRS. Boxing great Floyd Mayweather once sued the IRS, asking them to wait for McGregor’s fight so he could pay his taxes.

The IRS likes to receive payments, but is very used to giving them installment agreements. But before applying for any payment agreement, you must file and cooperate with all the necessary tax returns. Taxpayers who need time off can apply by filling out the IRS and submitting Form 9465, Installment Agreement Request And Form 433-A, and sometimes Form 433-B, Forms in the Form 433 series are basically financial statements that list all of your income, expenses and assets.

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