IRS Denies Koko Taylors Request To Pay Back Taxes With Reverse Mortgage

image Grammy winning blues singer Koko Taylor is running into trouble with the Government for failing to pay $400,000 in back taxes, penalties, and interest.  The government is threatening to grab most of her income, which includes royalties, social security, and maybe her home.

In May 2008, Taylor offered to use a reverse mortgage to help pay the back taxes but the feds rejected her offer to take out a reverse mortgage on the home and pay $200,000 plus up to 50% of any future net revenue.  This would allow her to remain in her home in Chicago and live out her remaining time with her second husband.

When the IRS denied the offer, Taylor’s lawyers filed two lawsuits in the U.S. Tax Court to block its collection actions and requested the court to order the agency to take their current offer.  According to the TaxProf, the Tax Court held that the IRS did not abuse its discretion in refusing to accept her proposed offers in compromise.  Read more at the link below. 

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Tax Court Takes Swipe at Daschle-Geithner-Killefer-Solis in Making Koko Taylor Sing the Tax Blues

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  • Koko Taylor is living Legend.She is clearly too old to work much and when she does she has to be helped to the stage and she sits down for most of her performance. Once Koko is on the stage she still has a voice that makes you feel the blues down to your soul.Koko cleared the path for all female singers. Many times she was under paid because she was a woman.We owe Koko a debt that we can never pay. She has scratched and clawed to get what little she has and now the IRS wants to take a little old lady’s home and social security. I guess they will use that money to bail out our failing economy. I am sure some bank CEO needs his bonus.

  • This is outrageous, considering what the rich tax cheats have beeen allowed to get away with. (50,000
    rich tax cheats hiding money in Swiss bank accounts)
    Where is Al Sharpton (Of course seems like I read somewhere that he, too, has a problem with the IRS) or Jesse Jackson ( Who really knows how to sharpen a taxpayer’s pencil..) when one needs them. (One time I tried to get the help of Jesse The Jack to help me help a Black, retired Teacher in Alton, Il. get a Reverse Mortgage, or at least a refinance of her terrible, existing conventional mortgage. I called his office in Chicago and when I asked to speak directly to THE MAN himself, you would have thought I had asked to speak with GODALLMIGHTY. Amazing it was. I’m just trying to help a lovely woman stay in her home in the last years of her life, I said. Sorry NO ONE (at your level was implied) gets to talk with REVEREND JACKSON.) Another lesson learned by Old Nelse the hard way. This is one case where the right man is in White House to help this good lady. I wonder how much money over her working years has this beautiful Ms. Taylor paid in Income Taxes already to the US Government?

  • That lowdown dirty tax man,
    he just won’t give me a break.
    I’ve made him a very fair offer,
    but my home he wants to take.

    Maybe what I’ve done was wrong,
    but everyone can make a mistake.
    Why can’t he find it in his cold heart,
    to give this old blues singer a break.

    I’ve got some words from my heart,
    that I want to tell that snake.
    Hey there Mr Taxman,

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