Always pay your taxes. – Felix Dennis, British publishing entrepreneur
Former British publishing magnate, Felix Dennis, states the above-mentioned quote.
At the time of his death, he was estimated to be worth over $100 million dollars. He wrote these words in his 2006 book How to get rich. He said there is no getting around paying taxes and that if you try it is likely to lead to severe economic problems and consequences.
Put simply; pay the taxman.
You can read more of his advice on my blog here.
That being said, let us jump right in to the topic at hand. It was recently reported that R&B singer, Montell Jordan, famous for the 1995 hit “This Is How We Do It,” owed the IRS $1.7 million in back taxes.
Surprising because the song ruled the airwaves and was No 1 on the Billboard charts. Fast forward to some years later and we find out that an $11,000 tax debt that went unpaid ballooned to almost $2 million dollars. WTF!!!
Please understand my surprise and literal shock upon hearing this as this song is still played in film and on television today. He should be raking in millions in royalties from this song alone. However, it is not the case.
He sadly had to sell his publishing rights to pay his tax debt. He immediately signed the $600,000 check over the the IRS and had to file for bankruptcy. Apparently, an accountant did not pay his $11k in taxes due one year and he was being charged 11% per day by the IRS until it hit $1.7 million.
On a personal note, I make sure to review all my tax documents, file them myself, and make sure to pay every penny owed to the feds. I do not ever put my fate in someone else’s hands.
This is not how we financially do it!
I cannot stress this enough. You are in charge of your money. Period. Do not ever let anything pass by you that you do not read when it comes to your finances.
No one cares about your money more than you.