As reported by Radar, Danny Masterson and Bijou Philips have been hit with an IRS tax lien for $128,983.00 for unpaid taxes in the years 2019, 2020, and 2021. The tax lien was filed on February 3, 2023.
There are several ways to read the tax lien.
- The IRS tax lien has seniority over any court judgments and all other debts. The tax lien accumulates interest at 10% per year. The IRS can also foreclose on any property or assets owned by Danny Masterson and Bijou Philips. This is what the IRS tells the defaulted taxpayer(s) in a tax lien:
- The tax lien suggests Danny Masterson was conserving cash to pay his massive legal bills and was not paying his income taxes. When Danny Masterson files his expected appeal on his criminal conviction he will again need large sums of cash. The same need for cash will be there when he pays to defend the pending civil cases against him.|
- The tax lien could also indicated that Danny Masterson’s royalties from the That 70’s Show and The Ranch were significantly reduced and/or eliminated when the shows were not picked up for syndication broadcast by cable television companies. As Aaron Smith-Levin has reported, That 70’s Show actors each lost a reported $20 million when the show was not picked up for another round of syndication following Danny Masterson’s high profile arrest and criminal trial on three counts of forcible rape. This would have cost Ashton Kutcher and Mila Kunis $40 million.
- In terms of Danny Masterson being declared an Suppressive Person, who pays his legal bills in his criminal appeal and the pending civil cases if he goes bankrupt? This is an interesting question because the Church of Scientology is a named party in the civil cases.
Is a bankruptcy filing in the future for Danny Masterson and Bijou Philips? If so, IRS liens are not always dischargeable in the US Tax Court. Scientologists Matt and Kathy Feshbach tried to discharge $3.8 million in back taxes in bankruptcy. The tax court said no and ruled that the Feshbach’s had the money to pay the taxes but chose instead to spend it on luxury living and donations to their church. Our article on the Feshbach’s trying to discharges taxes and being told no by the court is posted here.
From Radar Online: