How Does This Happen? Rick Ross Owes 5.7 million dollars to the IRS!

Rick Ross AKA (William Roberts II) owes the IRS 5.7 m million dollars img_2450in back taxes. This is from 2012-2014 tax years, according to TMZ who first broke the story. Most would ask How Does This Happen? How do a chart topping Rap Star owe the IRS so much?

 

 

It’s simple, The IRS responsibility is to collect taxes and enforce tax laws. In order to enforce laws and ensure that all federal taxes  are satisfied the IRS gather information.  They do not just rely on the information we provide through our tax records, they collect data as well. The IRS collects data from financial and government institutions. These institutions provide income, purchasing and debt history, giving the IRS the data needed to insure we are responsible with our federal tax obligation. Long story short, they know more than you think.  This data is used to cross reference the information we provide to insure all taxes was collected and all laws was enforced.

In the Biggest Boss case, the returned filed by his previous Accountaimg_2453nt has been filled incorrectly. This is what caused the discrepancy. Basically the information provided on behalf of the rap star did not comply with the proper filing requirements as governed by the IRS and they have determined he now owes 5.7 million dollars. This could be really simple or really stressful, depending on the severity of the incorrect filing.  Rick Ross reps released a statement which in short gives the confidence that this will be an easy fix. Rick Ross accountants will have to file an amended return with all supporting documents to support the correct filing for the IRS to review. This process is easy but can be time consuming, as the IRS typically takes about 16 weeks just to process amendments.

Rest assured the accountants are in for a waiting game and all should remain patient while they work through the IRS issues. As for now this is a good lesson on how easy it can be to owe the IRS a ton of money.

 

img_2451

Yvonne Washington

Yvonne Washington is a Midwest girl with a southern flare. This Kontrol Magazine writer is a serial entrepreneur and is the current COO of iTAX LLC. Yvonne is an avid Tax Professional with a love for great music, awesome books, and adventure.