Aaron Carter tripped up by IRS tax lien
Filed under: Tax
Aaron Carter is having a bad week. Just days after his elimination from Dancing with the Stars' ninth season, news surfaced that Carter was slapped with an IRS lien worth more than $1 million. The liens, which were filed in Los Angeles last week, date back to 2003. Carter has been trying to repair his bad boy image in recent months, including adding a new management team. Carter's current manager, Johnny Wright, told ET News, "It is unfortunate that while Aaron was a minor, his finances were grossly mismanaged by his previous team which has lead to the current situation of which he was unaware of until today. Aaron is working with a new team to take appropriate actions towards speedy resolution of the matter and looks forward to putting this behind him and moving forward with the next stage of his music career."
It's an easy out to blame "bad management" for financial distress (perhaps taking a cue from Nicholas Cage's playbook) but Carter may actually have a case. Carter's previous team included former manager, Lou Pearlman, who was largely responsible for the creation of boy bands 'NSYNC and the Backstreet Boys (big brother Nick Carter's former band). Carter filed suit against Pearlman twice. In 2002, Carter sued Pearlman for allegedly failing to pay hundreds of thousands of dollars in royalties on Carter's 1998 album. Carter eventually won a second lawsuit against Pearlman and his label TransContinental Records in 2007, which allowed him to be released from a recording contract that Carter signed while a minor. The following year, Pearlman pleaded guilty to conspiracy, money laundering and bank fraud charges and is now in federal prison.
Carter's other role models haven't been so great either. In December 2003, Carter filed for legal emancipation from his mother, Jane Carter, after alleging she took more $100,000 from his bank account without authorization. He implied on a 20/20 interview that the missing funds were much higher, perhaps millions. Carter said about his mother's reported misappropriation of funds: "I worked hard for months -- 10, 11 hours a day, not including school and press appearances -- and I come home and owe money!" Carter eventually resolved his differences with his mother, though she no longer participates in his professional life.
It's worth noting, however, that 2003, the same year that Carter filed suit, is the primary year at issue with respect to Carter's money woes. The lien for Carter's 2003 tax bill alone is just under $1 million.
Despite all of the bad press, former Dancing With the Stars partner Karina Smirnoff says that Carter is handling it well. Noting his age at the time of the tax bills, she added, "I don't see why he can be held responsible. He was a baby when all that... happened."
Reader Comments (Page 1 of 3)
11-20-2009 @ 2:23PM
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11-20-2009 @ 2:29PM
Todd said...
what a idiot.......................................Enough said.........Dumb things happen to Dumb people....
Reply
11-20-2009 @ 6:23PM
nicole said...
Wow, "a" idiot?... What was that about dumb people again?
11-20-2009 @ 2:44PM
james said...
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11-21-2009 @ 8:14AM
Frank said...
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11-20-2009 @ 3:00PM
Vanessa said...
If the kid owes the IRS a milion $s, can you imagine how much he earned? Pay your tax bill Aaron.. the rest of us do.
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11-20-2009 @ 3:14PM
Jim said...
i always knew he was a dick!
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11-20-2009 @ 3:25PM
joan said...
Carter is an immature kid, needs to grow up and start taking responsibility. He acted like a jerk on 'Dancing'. Someone like him won't amount to much in life, for sure!
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11-20-2009 @ 3:29PM
Monica said...
As someone who knows him, I'll say that in his case, a very large part of it WAS management. He may definitely bear some responsibility, but he's been fucked over a number of times by people who were SUPPOSED to look out for his interests (bearing in mind that during the time he earned the most, he was a minor).
And no I'm not saying this only b/c he's a friend--if he acts like an ass, I'll admit it. But he's definitely NOT the only one at fault here.
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11-20-2009 @ 6:12PM
Dee said...
Wether you know him or not I agree he was not at fault . I think he will get it all taken care of and I see a great futrue ahead for him. You don't see him in bars or getting busted for drugs and speedignhe is still young. Give him the chance he deserves to prove himself. As far as Dancing with the stars I can guaranteee that is the part he was told to play. As in past year everyone has his or her own role on that show.
11-20-2009 @ 7:01PM
sandra said...
i hope the best for him. tell him he still has fans out there waiting to see him on stage again!
thanks
11-20-2009 @ 3:35PM
tf said...
Couldn't stand the cocky sob when we was on dancing. Hope this lands him into trouble for a long time.
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11-20-2009 @ 4:00PM
Shahaila said...
Did you all not read that he was a MINOR when these taxes were not paid? How many of you knew anything about taxes before you were 18? Or before 25 or 30 for that matter. He is 21 now which means he was 15 in 2003. I would say he has reason to blame his management on this one.
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11-20-2009 @ 5:32PM
susan pugh said...
he is dumb or something. i thought they supose to have lawyer to look after that
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11-20-2009 @ 4:06PM
sandy said...
Pay your taxes or go to jail. Whatever....why would he not pay the darn taxes...the rest of us pay our taxes!!
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11-20-2009 @ 4:11PM
barbara said...
this is why the little people dont have a chance, now iam sure that he will get a break and only have to pay a small portion of it.. its BS
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11-20-2009 @ 4:13PM
Jim Jardine said...
WOW ! Another appointment for Obama.
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11-20-2009 @ 4:32PM
Mike said...
Does Obama know about this? There must be some place he can appoint him to. Maybe as head assitant to turbo tax Timmy at the treasury dept.
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11-20-2009 @ 4:33PM
Cody Cannon said...
Lou Pearlman and Jane Carter should have to pay whatever the settlement amount turns out to be, not Aaron. He should get advice from Pat Boone about getting a management team of sterning integrity. There are so very many sharks out there that no one is safe unless surrounded by the best people.
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12-08-2009 @ 2:18AM
Hey you said...
I'm with you. I also know Aaron and think nothing but the best of him. Screw you, Lou Perlman, you cheater; you and Geithner both need to get educated about financial responsibility!