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Girls Gone Wild founder sues IRS

December 29, 2009

So sorry to sully your year-end celebrations, but just like his late-night cable TV ads, Girls Gone Wild racy video franchise founder Joe Francis refuses to go away.

This fall, Francis pleaded guilty to two misdemeanor counts of filing false tax
returns. The plea deal also mandated that Francis pay back taxes and interest totaling $249,705, as well as a $10,000 fine. But he avoided additional jail time when a judge sentenced him to the the time he had served while waiting for resolution of the case.

Joe Francis and date Brittny Gastineau visit Hollywood's hottest new nightclub, Voyeur

And that, we all hoped at the time, was the end of our attention to Francis and his icky business enterprise.

Alas, no such luck.

Francis is back, now contending that a vengeful IRS has improperly frozen his bank account. So he's has filed a lawsuit against the tax agency.

At issue is the almost $34 million lien the IRS filed following Francis' plea deal. The IRS says it's for federal taxes Francis owes for the 2001 to 2003 tax years.

Francis says the IRS is just irked that he got off so lightly in connection with the false returns case.

This isn't the first time that Francis and his attorneys have tried to paint the video entrepreneur as the victim. Earlier, they said the tax case was evidence of the "IRS gone wild."

Back then, that was just talk. But this time, Francis and his lawyers have put it in official legalese.

In the lawsuit filing, Francis claims that the only circumstances under which assets can be frozen
are if the taxpayer is preparing to flee the country, if the taxpayer
is attempting to move assets out of the reach of the IRS, or if the
taxpayer appears to be going bankrupt.

None of those applies to him, argues Francis, so he wants the court to free up his money.

If you want a preview of the case's arguments, check out The Tax Lawyer's Blog. It appears from that detailed post, Joe has a tough legal row to hoe.

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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