Comedian Sinbad Owes Over Eight Million Dollars to the IRS

The IRS is going after comedian Sinbad for back taxes totaling over eight million dollars. Sinbad apparently filed tax returns for the money, but failed to actually pay it!

From feast to famine. Ah, don’t you just live the cycle of celebrity. Comedian Sinbad was red hot earlier this decade with a great stand up act and plenty of television and movie appearances. The money was coming in hand over fist. As with most celebrities, that flow of green did not last. While still working, Sinbad is no longer an in demand celebrity who can bring in the big bucks.

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At this point, I would usually tell you a story about how our celebrity moved his money offshore without paying taxes and is now in a heap of trouble. Wesley Snipes is a name that comes to mind. Alas, this is not the case with Sinbad. He filed tax returns every year. For some bizarre reason, however, he never actually sent in a check for the money due! 50 percent would make you a legend in baseball, but not when it comes to the IRS and taxes.

Sinbad has apparently been having money problems for some time. He filed what is known as an Offer in Compromise in 2003 with the IRS. An “OIC” is essentially a statement saying I owe the IRS a bunch of money, but don’t have any assets or earnings that are going to allow me to pay it. Please give me a break and take cents on the dollar. Well, the IRS disagreed and rejected the OIC offer.

Try, try again. Well, that’s what Sinbad did. In 2005, he filed another Offer in Compromise. This time, the IRS agreed to a reduced payment amount and a payment plan was agreed upon. Alas, Sinbad allegedly failed to make the payments, to wit, he reneged on an agreement with the IRS. Bad move.

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The IRS is now suing to take away his brother’s home. Huh? Well, it used to be Sinbad’s home, but title was switched over to his brother. The IRS is claiming the home is really still Sinbad’s and should be liquidated to pay his tax bill. It looks like the IRS has a pretty good chance since Sinbad’s entertainment company pays all the mortgage, utility bills, HOA fees and property taxes while his brother doesn’t claim a thing!

Will Sinbad be charged with tax evasion? It seems unlikely. He has filed tax returns, so it isn’t like he was up to something nefarious. He obviously is just having money problems. Still, the IRS is likely to aggressively go after everything he has and try to liquidate it.

Celebrity, as they say, can be fleeting.

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