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.