In 2007 and 2008, Juan Pablo Montoya and his wife allegedly reported approximately $2.4 million of income to the Internal Revenue Service (IRS) and paid taxes on that reported income. The IRS is now alleging that the couple had a much higher taxable income during the two-year period. More specifically, the IRS claims that the couple had a taxable income of approximately $9.5 million in the two-year period and now has federal tax debt.
Mr. Montoya has allegedly admitted that he earned approximately $800,000 more than was originally reported, but he contests the rest of the IRS tax assessment. At issue is not what Mr. Montoya earned directly as a professional racecar driver but rather his interest in offshore corporations and payments that he received for use of his picture or likeness. Mr. Montoya reportedly set up a limited liability company in Delaware to deal with the use of his “likeness.”
Mr. Montoya’s alleged tax troubles are complicated. However, it is possible to be in trouble with the IRS, even if you are a US citizen who does not have his own limited liability company to manage use of your name, appearance, voice, and likeness.
If you find yourself with federal tax debt and in a dispute with the IRS, then it is important to know your legal rights. Our Oklahoma tax lawyers encourage you to read our FREE article, “Preparation Key for Hiring IRS Help,” to learn more about how to get the help that you need to resolve your IRS problems.