Walk past a newsstand these days and you'll see dozens of glossy magazines with the faces of the rich and famous staring back at you. Glamour, fame, fortune! But behind the fancy clothes and re-touched photos, celebrities are just people who, like us regular Joes, make serious mistakes. No, not bad plastic surgery or making the Worst Dressed list, we're talking about making serious money mistakes.

Here are nine that have made headlines recently...

Money Mistake #1: Not Signing a Pre-nuptial Agreement
If the rampant rumors are true, Madonna and Guy Ritchie may be the latest celebrities calling it quits--and the latest to potentially end up in a nasty fight over money since the Material Girl apparently didn't have a prenuptial agreement. This puts Madonna's estimated $600 million fortune at risk. Remember, earlier this year another British court ordered Sir Paul to pay ex-Heather Mills a whopping $48.7 million, so this could cost Madonna dearly.

You don't need to be filthy rich to need a pre-nup. If you bring assets to your partnership that you want to be sure you keep 100% of if things don't work out, it's essential you work out a pre-nuptial agreement before you are married.

Money Mistake #2: Not keeping your will up to date.
Actor Heath Ledger's tragic death was compounded by the fact that neither his girlfriend, Michelle Williams, nor their daughter, Matilda, was included in his will. That wasn't a slight...Ledger just hadn't updated his will since 2003, well before either was in his life.

We all get busy, and visiting a lawyer to update your will isn't at the top of anyone's "fun" list, but it's one of the most important things you can do to protect your loved ones should something unexpected happen to you. Be sure you update your will to address any major life event, such as marriage, divorce or the birth of a child or grand-child.

Money Mistake #3: Losing a home to foreclosure
You've probably seen former Tonight Show host Ed McMahon in the headlines lately. In a sad turn of events, McMahon, once famous for knocking on people's door to make their dreams come true, is now facing the nightmare of losing his home to foreclosure.

Records show McMahon is $664,000 behind in payments on his Beverly Hills mansion. How could this happen? Simple: McMahon got caught by the housing bust just like so many other Americans. He bought a big house and took out a home equity loan when banks were saying "yes" to almost any request. Meanwhile, the value of his house went down with a very weak real estate the market, and he got behind in his payments.

Other celebs to lose their homes this year include queen of soul Aretha Franklin and disgraced baseballer Jose Canseco, who simply abandoned his $2.8 million pad -- just walked away and let the bank take it. (See a gallery of recent celebrity foreclosures here)

Money Mistake #4: Going Bankrupt
We know, we know, cry us a river, right? It's hard to muster much sympathy for celebrities who made a fortune and squandered it all, but the list of celebs forced to declare bankruptcy is surprisingly long. The newest member to join this unfortunate club is rapper MC Hammer, who burned through $30 million with his penchant for fancy cars, homes and a huge entourage. Other bankrupt celebs include boxer Mike Tyson, figure skating darling Dorothy Hamill and Debbie Reynolds.

Keep reading to learn about the two superstars who are in danger of adding their name to the list...

See the full list

A couple big stories out today in BusinessWeek and the Los Angeles Times talk about how state and local governments are getting pinched by both high gas prices and falling home values, which cut property tax revenues. They're just as broke as the rest of us. Governments are coming up money-saving schemes that range from creative to despicable. With expenses up and revenues down, governments are hoping to boost other revenues, like traffic tickets and lottery sales. So unless you plan to make up the budget shortfall, watch out.

Twenty-four states are in the red this year, the Times says, quoting stats from the National Conference of State Legislatures. They're cutting the favorite targets of school budgets and public health benefit. Local governments are cutting back on services like buses or parking the bookmobile. Some places are cutting back on all the unnecessary grass-mowing. BusinessWeek says Stillwater, Oklahoma cut its mowing in half, letting parkland turn into prairie. Somewhere Lady Bird Johnson must be smiling.

As much as no one wants to cut back on public safety, for some districts it's inevitable. Cops around the country have to watch their gas spending. Some are switching to alternate vehicles, like golf carts, or just doing foot patrols. Cops in El Paso County, Colo., saw their gas bill climb from $160,000 in 2003 to a projected $700,000 next year, the Times reported, so they stopped car patrols, a move they say will mean they won't be able to catch as many drunk drivers. BusinessWeek says Arizona is going to boost traffic tickets from cameras -- how many speeding tickets can a cop in a golf cart issue -- and stepped up lottery sales. Earlier this year California hatched a new lottery plan and Colorado decided to increase ticket fees. Expect to see these schemes around the country.

I'm all for the government cracking down on collecting child support payments, and taking the money directly out of IRS payment seems like a winning plan. But the $2 billion that the government has collected so far isn't all from deadbeat dads. I, for instance, am part of the 39% of those who had money withheld for an unpaid federal debt. And I still don't know why.

I apparently owed the federal government $89.49 and they took it from my rebate check. I got a letter in the mail from the Department of the Treasury that told me, "As authorized by Federal law, we applied all or part of your Federal payment to a debt you owe." Then it gave an address and phone number for a Birmingham, Ala. processing center.

I called, of course, and all they could tell me is that the Transportation Security Administration had taken my money. They said they could give me their main number. They might as well have offered to give me the number for the White House to ask President Bush what was up with my payment. I didn't figure you could just call a mammoth government agency and get any kind of response.

Betty was excited about receiving her IRS stimulus check -- but when she called to inquire about why the money hadn't arrived in her account, she was politely informed that she was dead.

Now the IRS is taking weeks to correct its mistake and Betty, who is living on a fixed income, is struggling to cover her living expenses. Check out the video below.

The San Francisco Chronicle reports that Ivana Trump -- the former Mrs. Donald and mother of Ivanka, Donald Jr. and Eric -- failed to pay a $145,216 tax bill because of all the excitement surrounding her $3 million wedding to Rossano Rubicondi.

According to The Daily Dish, "Trump was named and shamed by Florida authorities after failing to pay the property tax on her $10 million estate."

I say leave this woman alone. Not only did she marry Donald Trump, she slept with him enough times to have 3 children. Anyone who did that should not have to pay taxes again. She's suffered enough! I know that she received a reported divorce settlement of more than $40 million but still. That's not nearly enough for putting up with him.

Last week I vented my frustration at the IRS, the government, George Bush -- anyone! -- when I wrote, Where's my stimulus check. The post hit a nerve apparently, drawing thousands of page views and hundreds of comments.

I was supposed to receive my family's $1,800 economic stimulus check via direct deposit on May 9. But the day came and went with little fanfare...and even less money. That's the day I wrote the post.

Today, a full week later, Turbo Tax sends me an email. The salient section:

The cheating was simple: New England Patriots staff members videotaped the signals of opposing teams. That's not allowed by the National Football League. The team got almost no punishment for their cheating. (A relatively light fine and the loss of a first-round draft pick.) End of story.

Unless you're a United States Senator. Then you must suggest that taxpayer money be spent investigating these football shenanigans. No, I'm not kidding. Senator Arlen Specter says he wants an investigation done because the NFL hasn't done enough about the cheating.

Is he serious? The cheating was bad. The lack of punishment was worse. But it's football, for pete's sake. Are any other teams really complaining? No. (Although I promise you if it was my beloved Green Bay Packers who cheated, we'd never hear the end of it... ever.)

But no one really cares anymore. So just leave it alone. There are plenty of other uses for our tax money. And the fact that there was a huge investigation into steroids in Major League Baseball does not mean that we should throw away more taxpayer money on an essentially meaningless "investigation" of professional football. Next issue of national importance, please.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Emphysema, heart disease, lung cancer, necrosis, crib death, bad smells...smoking has been accused of causing an almost endless list of problems. Recently, however, New York's outrageous taxes have added a fresh one: funding terrorism.

Because of recent tax increases, cigarettes currently cost approximately $9 a pack in New York city. On the other hand, they cost roughly $3 a pack when purchased at Indian reservations on Long Island. For years, New Yorkers have used reservations to help fund their habits by purchasing cartons of cigarettes, either in person or via the internet. The recent tax hike, however, has made cigarette smuggling an easy and relatively safe way to make a lot of money.

According to a recent report, the Bureau of Alcohol, Tobacco, and Firearms is currently investigating over 300 smuggling rings that are purchasing cigarettes from Indian reservations or southern states with lower taxes and reselling them in New York City. Some of these smugglers supposedly have links to Hamas, Hezbollah, and Al Qaeda.

In an opinion piece in the New York Post, Congressman Peter King (R-NY) cited the case of cigarette smuggler Mohamad Hammoud, who allegedly made $8 million from 2000-2002 and donated $100,000 to Hezbollah. Congressman King noted that the operational cost of the 9/11 airstrikes was approximately $500,000, a sum that could be generated with only a few cigarette runs. Of course, from the perspective of international terrorists, this is a win/win situation: if the Camels don't get ya, the fundamentalists will.

While I'm sure that cigarettes will end up bearing the brunt of outrage over this issue, it might be a good idea to look beyond the obvious. Congressman King is calling for a repeal of the "forebearance" that allows Indian reservations to sell cigarettes without charging tax. As a student of history, I feel like we've cheated the Indians enough, but I agree that something must be done about this. May I humbly suggest that we stop using cigarette taxes as a way of dictating our health policy, try to treat smokers like humans and, perhaps, find another way of filling our public coffers?

Bruce Watson is a freelance writer, blogger, and all-around cheapskate. As a former smoker, he doesn't like the smell of cigarettes, but tries to not be a jerk about it!

Actor Wesley Snipes was cleared of the most serious charges in his criminal tax evasion trial, but he's still going to do spend some time in the pokey.

Yesterday, a federal judge William Terrell Hodges of Federal District Court.sentenced him to 3 years in prison for willfully failing to file a tax return. That's the maximum sentence for the 3 misdemeanor counts, and it seems that the judge is looking to make an example of Snipes. He also must pay $17 million in back taxes plus interest and penalties.

Mr. Snipes' lawyer said he would appeal.

Wesley Snipes is the most prominent example in years of the government's efforts to crack down on tax deniers -- people who claim that they are not obligated to pay taxes.

For some examples of the arguments tax deniers use -- and why they don't work, check out this great series from Tracy Coenen.

Since co-authoring The Three Trillion Dollar War with Linda Bilmes, Nobel Prize-winning economist Joseph Stiglitz has tried to help American taxpayers wrap their heads around just how much our government is spending on the conflicts and subsequent occupations of Iraq and Afghanistan by doing some comparison shopping.

"Try filling your shopping cart with what the cost of the Iraq War could buy: health care for every American? A new home for every subprime borrower now facing foreclosure? An Ivy League degree or two? You haven't even gotten started," Stiglitz said.

To illustrate Stiglitz's assertion, the folks at True Majority and Brave New Films launched the Three Trillion Dollar Shopping Spree, where consumers can fill their carts with $3 trillion worth of virtual items that could save the world or just make their own lives easier.

While there are lots of opinions pro and against the Economic Stimulus Package checks (hitting your bank account beginning May 2!), the fact is: they're coming no matter what you think. We all have heard the prevailing skepticism as to whether $300 - $3,000 a family will do anything to help the failing dollar or to create jobs; in the end, who knows? But we have some ideas about how we could spend together to create the change we want to happen. And we'd be remiss as a personal finance site if we didn't come up with some ways you can truly stimulate your own personal economy.

Let's start with a couple of Don'ts. Don't use your rebate check for conspicuous consumption -- TVs, DVD players, large bottles of Champagne, imported Kobe beef, a trip to Cancun. Don't use it to create a greater need for fossil fuels; not as a down payment for a new car (if your very survival depends on a car, at least get a used one), or to trade up to a bigger gas guzzler, or for a power mower, or to put a new hot tub in. Do this and you'll help stimulate us into the worst possible direction.

Here's a better idea. Do try to spend it locally on something that will benefit your financial future! I've been reading a lot of smart people's musings about this (and coming up with some of my own), and have identified some areas of absolute crisis in our economy. Our country's farmland is being stripped by the wrong-headed over-production of corn and soy (in complete ignorance of sustainable farming practices). Our limited fossil fuel resources are being frittered away unnecessarily so we can continue to cling to our isolated, wasteful car culture. Our healthcare expenditures are reaching a panic point, while we are eating ever-more-expensive, ever-more-damaging food. Life as we know it is not sustainable, and no one seems to have the willpower to reverse the societal tide.

Doing something radical with your Economic Stimulus Package check can be both fun and good for your own financial bottom line. You'll end up with more money left after your pay your bills, you'll be healthier, and you may just spur a tiny bit of social change. At the very least, it can't hurt you. Here are some ideas:

I am one of the world's leading procrastinators. Last night I finished and hit "transmit" on my E-filed taxes at exactly 11:59 p.m. I had planned to do my taxes in February, of course, and then... all of the sudden it was April 15th, and it was nearly midnight. What some people do for an adrenaline rush, hmmm?

But in previous years I've done far worse. Last year I managed to get my Federal taxes to the post office by 11:56 p.m. on tax day... my Federal taxes for 2005. It wasn't until a few days later that I finished my Federal and state taxes for 2006, and my state taxes for 2005. So I know exactly what happens to a person who doesn't file her (or his) taxes on time.

Did you miss the deadline? Did you forget to file an extension, or just not get around to it? Are you, too, a tax delinquent? Firstly: take a deep breath. No one is going to throw you in prison for sending in your taxes a few days late. They won't even call or write, not for several months (and, if you haven't filed in previous years, they could never call or write, depending on whether or not you have had income reported to government agencies). If you manage to get them in a reasonable time frame (less than six months), you'll just be paying a small penalty and interest (if you owe taxes), as much as 4.5% and more if your taxes are more than 60 days late (at least $100, or a penalty equal to the whole amount you owe, whichever is smaller).

What if you're owed a refund?

I do it every year.

I wait until the last minute to file my taxes. And once again, I'm doing it again.

If you're reading this on April 15, and it's not yet 5:30 p.m., when my post office closes, I can pretty much guarantee that I'm not finished with my taxes. If it's after 5:30 p.m., I'm probably contemplating breaking into my post office.

I know I'm not alone, or at least I'm not, judging from all the articles out there in the newspapers, writing about the late filers. In this day of political correctness, there aren't many groups that we can kid, but, boy, do we like to poke fun at the tax filing procrastinators.

With millions of people scrambling to get their taxes in on time, there's a large group facing additional complications and the possibility of additional taxes: the estimated 3 million same-sex couples living together as households.

USA Today takes a great look at this overlooked issue: "Take two couples where one partner has a taxable income of $20,000 and the other makes $40,000. If they can file their federal taxes jointly, the tax bill would be $8,217.50. Filing separately, the combined bill would be $9,032.50 - more than $800 higher."

The federal government does not recognize same-sex marriages even from legally-married Massachusetts couples, which can lead to another complication: filing state taxes jointly but federal taxes individually.

Britney and K-Fed could file taxes jointly and save money, but a gay couple that's lived together for 30 years and adopted children can't. That's wrong, and it's also stupid.

Some good links: the best argument for gay marriage comes from a Republican state congressman from Wyoming. If you haven't seen it before, here are 12 (very sarcastic) reasons that gay marriage will ruin America.

One of the most common rebuttals to dinner-table arguments for tax increases goes something like this: "You want to pay more taxes? Go for it! But leave me the heck alone!"

It turns out you actually can do that. Last year, the U.S. Treasury collected $2.6 million in voluntary reduce the debt donations. According to Wikipedia, the IRS collected about $1,236,259,000,000. I won't bore you by expressing that as a percent but suffice to say that just about no one feels strongly enough about the national debt to make their own contributions to it.

Enter California Republican Congressman John Campbell who has introduced a bill in the House of Representatives called "The Put Your Money Where Wealth is Act." The bill would place a little box on the 1040 that you can just write in the additional amount you wish to donate to the Treasury, making it easier for the millions of Americans who are secretly dying to pay more taxes to do just that.

The Wall Street Journal opines (subscription required) that"Apparently even most liberals would rather keep their money, or bequeath their estates to charity rather than to the IRS."

And why is that? I would guess that most people intuitively recognize that private organizations are more efficient at using resources to do good work than that government.

That's something to think about as we listen to politicians in an election talk magnanimously about the need to help out struggling homeowners -- with your money, whether you like it or not.