Caseys tax problems exposed..maybe

[Itsy]

Whoever paid out all that money..... (ABC) CBS) has to account for the expenditure of funds. So, if nothing else, we will get an accounting of the money and what went to who, when and where. I wouldn't wanna be JB at this point!!!

No, ABC would not have to account for where the funds went, Casey would have to do that on her tax return for 2008.

When ICA sold those pictures to ABC,they would have been legally obligated to issue with the check,(attached to check) the dispostion of the funds,regarding taxes etc. Evidently NO TAXES were 'set aside' for this check,ICA signed the check and handed it to JB. In that situation,because she was relying on legal representation to advise her she may well have some legal recourse. But knowing JB he probably told her when you get off we'll do the TV circuit and make more money to pay any taxes due off.JMHO

Again, ABC would not have to attach anything to the check. She got the check & ABC issued her a 1099.

I don't believe it was their obligation to do so. They aren't tax lawyers or accountants. What do they care? Not being snarky, I just don't think it was their place to make sure she paid her taxes.

Correct, it was no one's responsibility but Casey's. Ignorance of tax law is NOT a valid excuse.

These networks need to take that money out before issuing the check like the lottery and some financial institues do for large sums.

No, the networks are not required to withhold taxes. Lotteries give you the option of having taxes withheld. I had to advise many prior clients to request taxes be withheld if they ever were lucky enough to win the lottery again after they were shocked at what they owed when they won.

No doubt CBS/ABC or who-ever bought the pictures filed a 1099 that year and the IRS is about 3 years behind or more, so when they go match the 1099 to her return there is no return. That is taxable income and she failed to report it.

It is good cause she could never own anything (movie rights, books)or get any other money cause of the lien, the IRS will take theirs first. Oh and the penalty and intrest will be out of this world.

Yes, the IRS does run behind, but if you'll notice in the lien, they do state that they had tried to collect previously and received no response.

But it is up to the tax payer to file that as income. JMO Not her attorneys, and what if they say they DID advise her? We all know that lying would be no problem for her.

You are correct about it being Casey's problem. Doesn't matter if JB et al advised her that she didn't need to worry about it or whatever they told her. Again, ignorance is not an excuse.

It's not the TV network's job to be sure that someone pays their taxes. All they do is issue the check and then send that info to the IRS with the 1099 form.
JB should have advised her of the pending tax bill but that would have cut into the amount he received, so it seems he kept his mouth shut.

lol, I bet you are right about JB.

iirc,,filing a Tax lien is the last stage in the collection process for the IRS...

They send a bill and or notice to pay along with proper publications and the person can work out a resolution to the problem..., extenion to pay, installments, delay of collection and an offer to compromise...

Correct, and the notice does say they tried to collect before sending out this notice.

IMO Jose Baez should pay for this out of his pocket. He is the one that received the money for his services. So....let's see how he's gonna handle this one.

JB is only required to pay taxes on what he received. He should have claimed his amount on his tax return....even if Casey didn't issue him a 1099.

Let's say Casey got the check from ABC. The check was for $200,000.00. Casey simply signs the check directly over to JB and he then pays himself the, I believe it was $80,000.00 and $20,000.00 went to AL... what if he used all the other money on Casey's other lawyers?? Would that make JB solely responsible for the taxes??

Or would Casey have had to pay the taxes on the $200,000.00 first, then hand over money to JB and then JB was obligated to pay the taxes of money he earned??

Casey should have then issued JB a 1099 for the portion she paid him.

Hmmmm! Wonder if the IRS would consider these monies 'earned income' or 'charitable donations'?

I know you were being sarcastic, but the $$ she received from family and the wackos (IMO) are considered "gifts." :crazy: No one gets to claim them as donations.

It appears that he let ICA put all of the assets (monies from ABC et all) in HER name,and because she was in jail he got the checks,(mailed to his office)she signed the checks and HE cashed them into his business account.He would not have been issued any monies which would have made him liable for the taxes,ICA was. However he better hope IRS never comes a-calling to do an exam on his business,now that might prove to be interesting,what happen to all the monies he received JMHO :twocents:

All he is liable for is what she paid him - be it $89,000 as he stated or the whole $200,000. (I thought it was $225,000? :waitasec: could be misremembering...is that a word?)

http://www.lectlaw.com/filesh/qfl04.htm
Power of Attorney

(There are different types of POA. They are also listed on this site)

POA for the IRS only allows another party (JB) to discuss/correspond with the IRS about her tax situation.

Hey how much of an income from the pics would she have gotten to come up with a $68,000 IRS tab???

I wonder how log it will be till Fla. files for their state taxes?

She is responsible for self employment tax on top of ordinary federal income tax on the amount she made after any deductions. Florida has no state income tax, although they do have a "tangible tax" but I can't remember what that covers as it's been years since I did a FL return that required this.

Hold on Mr Taxman - the amount of income tax due can be reduced by expenses associated with that income - picture sales were a direct result from the publicity surrounding this trial - therefore all costs associated with the trial (ie any money JB & Co spent) could be deducted from the gross sales - pretty sure the tax liability reduced could easily be reduced to zero

so the real question is why did the IRS bother? but also - why now? and just curious but what is the lean against? aren't tax liens usually placed against property owned by that person? I know that wages can be garnished and such but is that actually a lien? and even if it is, there are no wages involved here - wouldn't this actually just be a tax "bill" at this point instead of a lien? like I said - just curious....

LOL, believe me, the IRS will "bother" anyone that made this kind of money! They'll "bother" you if you fail to report $10.00 in interest income. They don't know of any expenses you may claim, so they tax you on the entire amount. And she didn't owe the $68,000 at first - this amount is including penalties & interest, which have been accruing since 4/15/09 when her 2008 tax return was due. There's also some P&I added into this amount for not paying estimated tax on the $200,000+...and the IRS has no idea if you own any property or not, until/unless they do a thorough investigation.

 

[everyoneneedsavoice]

Itsy,

Thank you for your informative post / response...certainly clarified a lot of my questions.

 

[MAMABEAR]

Oh---oh---oh----can the state use this against ica???

 

[Itsy]

Oh---oh---oh----can the state use this against ica???

I don't believe so. Probably a question for the lawyer thread.

 

[kinsey milhoune]

Will it be admissable in court that she sold pics of Caylee? That won't go down well with the jurors!!!

 

[MAMABEAR]

don't think they can...they can't bring up the felony....so there you go....

well---that sucks

 

[sharpar]

Love it ! That would be some kind of poetic justice .....

 

[Kimmer]

I would imagine that there would.be.a high % of taxes attached to any.and all picture monies because the Feds would consider it unearned income sense KC did not hold down employment that is the same tax bracket given to people on social security and disability payments...I hope that between the IRS and.the.JAC that he won't even havel a drivers license when they get done with him

 

[aafromaa]

I thought the Florida taxpayers were paying all her expenses, so how could it get reduced? Guess JB will figure a way.

they have been paying it since she was declared indigent but prior to that I'm pretty sure that everything from photo sales to donations was footing the bill at the Biaz law firm and it was when those funds dried up that they sought to have her declared indigent - in fact I think that's when the amount that was paid for these photos/videos became common knowledge (IIRC)

also note regarding another post about attorney's fees not being tax deductible - it's true that if one hires an attorney to fight a speeding ticket they probably cannot deduct that expense from their taxes - but attorney fees are a totally acceptible business deduction if they are related to the "business" that generates the income being taxed - I'm only a "lay person" when it comes to taxes in that I worked for a tax consultant many years ago but did pick up a few things from him and one of the things was how easy it is to declare any non w-2 income on a schedule C and how easily it is to find a multitude of completely legal and acceptable ways to reduce that income - that includes anything related to the cost of goods sold which is not limited to the cost of taking a photo or developing it or purchasing prints but also can include things like attorney fees and advertising expenses - and IIRC Mr Biaz brokered this deal to sell the pictures so his representation of her is not limited to defense of the charges against her but apparently also as her business attorney therefore making his fees deductible - I THINK

 

[MAMABEAR]

bbm
yes. It was...wed. May 18...tax lien notice was prepared and signed may 17th...and it was recorded with the osceola clerk of court on may 25.

yes---but that was may 17th of 2010<<<---SORRY WAS 2011

 

[MAMABEAR]

Did it work?

 

[carole]

I would imagine that there would.be.a high % of taxes attached to any.and all picture monies because the Feds would consider it unearned income sense KC did not hold down employment that is the same tax bracket given to people on social security and disability payments...I hope that between the IRS and.the.JAC that he won't even havel a drivers license when they get done with him

BBM

This is tax owed by Casey. JB isn't responsible for seeing that she pays it. That's Casey's responsibility. She won't have any money to every pay it, but it isn't JBs problem.

If he doesn't pay taxes on the money that Casey has paid him, then he'll be in trouble with the IRS.

 

[Sparky]

The lien is dated for the yr 2008. She has been in jail since the end of that year. IMO, it is JB's responsibility to notify her. She was receiving mail at his business address, but living at the jail. Even if he did notify her, it should have been paid and he should have made sure it was.

So if she received 200,000 and he received 89,000 from it, where is the rest of the money? That leaves a balance of 111,000. She owes IRS 68,520 and that would leave a balance of 42,480.

Of course this is just mo.

 

[carole]

The lien is dated for the yr 2008. She has been in jail since the end of that year. IMO, it is JB's responsibility to notify her. She was receiving mail at his business address, but living at the jail. Even if he did notify her, it should have been paid and he should have made sure it was.

So if she received 200,000 and he received 89,000 from it, where is the rest of the money? That leaves a balance of 111,000. She owes IRS 68,520 and that would leave a balance of 42,480.

Of course this is jusy mo.

Absolutely, it is his duty to inform her and let her know it should be paid.

But how could he make her pay it?? He hasn't been able to make her tell the truth about Caylee.

 

[Sparky]

Absolutely, it is his duty to inform her and let her know it should be paid.

But how could he make her pay it?? He hasn't been able to make her tell the truth about Caylee.

I believe JB knows what happened to Caylee.

If she signed the 200,000 check over to him, then he should have, could have put money aside to pay the taxes.

IMO

 

[carole]

I believe JB knows what happened to Caylee.

If she signed the 200,000 check over to him, then he should have, could have put money aside to pay the taxes.

IMO

You're right, of course. I was thinking about a direct deposit into her bank account, but she probably doesn't have one, since she had no income.

 

[kaRN]

Wouldn't the taxes on the money from the deal her lawyer brokered be something her lawyer would be concerned about? Wasn't he holding the money in trust? Shouldn't he have held onto the amount needed to pay taxes, assuming he wasn't a complete horses behind??

I mean on the long shot she'd be found innocent, it would be nice if her lawyer set it up so she wasn't in trouble with the IRS.

Will the IRS claw the money back from her commissary account?

 

[kaRN]

[/b]
BBM

This is tax owed by Casey. JB isn't responsible for seeing that she pays it. That's Casey's responsibility. She won't have any money to every pay it, but it isn't JBs problem.

If he doesn't pay taxes on the money that Casey has paid him, then he'll be in trouble with the IRS.

He was holding the money in trust for her Carole so if he didn't withold the taxes, he's the one in real trouble. Casey was in jail and couldn't spend it.

 

[Brassband]

The IRS mailed the lien to Baez's law office. 522 Simpson Rd, Kissimmee.
The IRS must have a 3rd party designee on file that makes him a recipient of IRS correspondence.

 

[Cher352]

The IRS mailed the lien to Baez's law office. 522 Simpson Rd, Kissimmee.
The IRS must have a 3rd party designee on file that makes him a recipient of IRS correspondence.

I was thinking that ABC would have furnished that address to the IRS as to where the check was mailed to from their financial reports.