Dear Mr. Redford… About your tax bill…

​Hello all…so a slow start to my blogging…but I see so much, I think other than by Tweets and Facebook posts and newsletters…here is a way to continue to stay in touch.

Recently a came across an article which reported Robert Redford was suing New York over a $1.6 million dollar tax tab for selling the Sundance Channel. You can read the entire article at:

http://www.accountingtoday.com/news/celebrity-tax-news/robert-redford-sues-new-york-tax-tab-selling-sundance-channel-71617-1.html

As a diligent accountant, I read this matter with great interest. Now for my response:

Dear Mr. Redford:

I am sure you are hopping mad at the tax bill you received. However, your anger is misplaced. Please head to your powder room and look into your mirror. Then, please ask yourself if you had discussion with your accountants, brokers and other advisers responsible for preparing your tax return.

New York State, as do many other states which impose state income taxes, access taxes on your income in that state regardless of your residency.

Now, my advice here is free—-so you can take it for what it’s worth, BUT I highly doubt you will prevail in your lawsuit.

No matter where this error in reporting your income originated, it is, regardless, an error. Your accountant, should amend your returns to correct your Utah State income tax (removing the portion of income resulting from the sale of the New York asset) and prepare a New York State income tax return to include the income from the sale of the asset.

You should then request abatement of penalties and understand you will be responsible for interest on unpaid taxes.

So, Mr. Redford, I am sorry to hear of your situation, but attorneys and lawsuits are not always the answer.

Sincerely,

Rhonda Mannes
Certified Public Accountant.

PS….I am currently accepting new clients.

Photo Credit: Robert Redford at an event at the US Embassy in London.
Date: 25 April 2012, 19:13:55 
Source: https://www.flickr.com/photos/usembassylondon/7115289955/in/set-72157629539238726
​Author: U.S. Embassy photographer JP Evans
public domain 

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