Stephen Baldwin, the youngest of the Baldwin brothers has filed for bankruptcy. In his bankruptcy petition he states that his home is valued at $1.1 million but still owes $1.19 million on the mortgages.
Baldwin is said to owe $749,974 in back taxes to the IRS, has $139,288 of liability related to unpaid withholding taxes and also owes $195K in state income taxes that remain unpaid. This means that his total tax bill that is unpaid equals a whopping $1.084 million dollars.
These tough economic times are hitting many people, even celebrities. The main cause of Baldwin’s bankruptcy is from the mortgages that he owes. Lots of people are walking away from their mortgages that are larger than their home values in these times. Bankruptcy is rarely a solution for back taxes, there are much better ways to settle with the IRS. It is very likely that Baldwin will not be able to discharge his taxes through filing bankruptcy.
This post was published on July 23, 2009