One woman received a multimillion state tax refund. Another woman allegedly didn't pay her federal taxes for years on the millions she earned. Both were subjects of posts last week at my other tax blog.
Grammy-winning singer Lauryn Hill says she went underground for personal and creative reasons. It also, contends the Internal Revenue Service, was a way for Hill to escape paying federal taxes in 2005, 2006 and 2007.
During those three years, Hill reportedly earned an estimated $1.8 million in income, mostly from recording and film royalties. But according to charges filed against her, she never reported the earnings to the IRS.
Oregon's problem comes from millions that were reported to the state tax department. However, the state says those earnings were fake.
Wait. Things get worse for Oregon.
Even though the quetionable return was flagged by tax department computers, the person who reviewed it OK'ed the issuance of a $2.1 million erroneous state tax refund.
Things, however, appear to be working out for the federal and state tax collectors.
Hill says she intends to make things right with the IRS. And Oregon got most of its erroneous refund money back when the alleged scam perpetrator reported the debit card onto which the refund money was loaded as missing.
You can check out my new tax posts at Bankrate Taxes Blog each Tuesday and Thursday. If you happen to miss them on those days, you can find a wrap-up here the following weekend.
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