Talk about being deep in debt. Steve Harvey, the comedian, found in 2008 that he owed the IRS a whopping $25 million.
“My previous tax accountant, who died away, did some, shall we say, less than prudent things,” Harvey remembered in a recent interview with the Earn Your Leisure podcast. “And since he’s no longer alive, and I’m not one to criticise the dead, let’s just say some horrible things were done, and I looked up and found myself in a heap of difficulty worth over $25 million.”
“They were cashing the checks, keeping the money, and not submitting the tax forms,” he continued.
They did not cash it; they transferred the funds to the account with the exact number.”
Not only was newlywed Harvey anxious about losing his money and goods, but also his wife, Yahoo reported.
Harvey is rumoured to own real estate in a number of cities, including Atlanta, Texas, and Chicago.
“I put my wife down, and she cried, and I embraced her and reassured her that everything would be fine; I would get us out,” he explained.
Steve Harvey’s net worth is expected to be $200 million in 2022.
Three things you should know about how he dug himself out of a huge hole.
1. He figured out a way out.
Harvey went to work to earn the money necessary to repay the IRS. As an actor, novelist, and television and radio presenter, Harvey is most known for his observational humour influenced by personal experiences. He later gained notoriety for his self-help advice, particularly about relationships.
“I just arrived at work,” he explained. “I accepted every assignment and contract and worked nonstop. I persisted, until a significant agreement came through in 2012, and I was set free. And everything has been well since.”
Harvey hosted the Miss Universe Pageant for six years and was named permanent anchor of the television game show “Family Feud” in 2010. Additionally, he served as the host of “The Steve Harvey Morning Show” and “Celebrity Family Feud.”
He authored several books on relationships, including “Act Like A Lady, Think Like A Man,” which was adapted into two Kevin Hart-starring films.
According to Black Enterprise, at least $10 million of his almost $45 million annual income comes from his “Family Feud” position. His radio hosting job earns him an additional $20 million.
2. Recurring payments
Harvey paid the IRS $650,000 per month for seven years, according to Audio Boom. Of fact, Harvey was repaying not just his debt but also the interest and penalties associated with it.
The late-filing penalty is typically 5% of the tax due for each month or portion of a month in which your return is late. According to tax preparation service H&R Block, this applies up to a maximum of 25% of the tax payable.
In 2020, the IRS expects to collect $3.71 trillion in tax revenue.
3. Closed a significant agreement
In 2000, Harvey launched the nationally syndicated radio show. According to a press release, NBCUniversal Domestic TV Distribution released the show in broadcast syndication.
NBCUniversal Domestic Television Distribution sold the chat show “Steve Harvey” to NBC Owned Television Stations in 2011 for a Fall 2012 premiere.
In 2012, Harvey was able to pay off the IRS through the sale of his radio network. “It was a substantial sum of money, but it rescued me,” he explained. The transaction price was not disclosed.