Infamous Tax Evader – Willie Nelson

Nelson has worked for years fighting for marijuana legalization and is a co-chair of the National Organization for the Reform of Marijuana Laws (NORML) advisory board. After his arrest for possession of marijuana in 2010, Nelson created the TeaPot party under the motto “Tax it, regulate it and legalize it!”. Following the legalization of marijuana in different US states in 2015 Nelson announced the establishment of his own marijuana brand, Willie’s Reserve. In addition, he plans to open chain stores in the states were marijuana is legalized.

In the summer of 1977, Nelson discovered that his manager, Reshen, had been filing tax extensions and not paying the Internal Revenue Service (IRS). In 1978, after he fired Reshen Nelson appointed accounting firm Price Waterhouse who recommended he invest in tax shelters. Unfortunately, the tax shelters ultimately flopped and the IRS disallowed his deductions for 1980, 1981 and 1982 (at a time that Nelson’s income multiplied). After seizing most of his assets in 1990, the federal government forced Willie to pay over $16 million in back taxes and fines for his involvement with a bogus tax shelter. Later, Nelson’s attorney renegotiated a settlement with the IRS in which he paid $6 million. Nelson released The IRS Tapes: Who’ll Buy My Memories? as a double album, with all profits destined for the IRS. Many of his assets were auctioned and purchased by friends, who donated or rented his possessions to him for a nominal fee. He sued Price Waterhouse, contending that they put his money in illegal tax shelters. The lawsuit was settled for an undisclosed amount and Nelson cleared his debts by 1993.