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Stephen Baldwin tax trouble, bankruptcy

July 22, 2009

Stephen_baldwin2 Speaking of high-net-worth individuals who have fallen from that category, add actor Stephen Baldwin to the list. He and his wife have filed for bankruptcy, brought about in large part by unpaid state and federal taxes.   

One of the — you pick you adjective: famed, infamous, acclaimed, despised — Baldwin brothers, Stephen's best role was as Michael McManus in the 1994 flick The Usual Suspects.

IMDB.com describes the character as "a crack shot with a temper and a wild streak." Perhaps Baldwin nailed the role because it wasn't a stretch.

Youthful escapades got him kicked out of college; he later battled drug abuse.

And he sure shot off his mouth back in May on Fox News, with comments about the president that some viewed as wildly inappropriate.

Now he faces a major financial challenge.

Papers filed in New York federal court show that Baldwin:

  • Owes $1.2 million in two mortgages on a New York City-area property valued at $1.1 million,

  • Is $70,000 in credit card
    debt, and

  • Owes more than $1 million in taxes.

The tax troubles involve both the IRS and New York state collectors.

Uncle Sam is owed the most: $749,974. That amount is from unpaid taxes as far back as 1999. There's another $139,288
due for unpaid withholding taxes.

Baldwin's overdue state income tax bill is $194,527.

You can read more on the Baldwin bankruptcy and tax trouble from the usual media suspects:

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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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