See the title? Goodfellas. Get it? Martin Scorsese directed Goodfellas, and now he’s dealing with the IRS—so naturally, we’re calling them the “Goodfellas.” Attorneys by day, comedians by night, here at Wolf Tax.
But jokes aside, even Hollywood legends aren’t immune to tax trouble.
In 2011, iconic filmmaker Martin Scorsese—the mind behind Taxi Driver, Raging Bull, The Departed, and yes, Goodfellas—was hit with a $2.85 million federal tax lien. And this wasn’t his first run-in with the IRS. Back in 2002 and 2003, the IRS reportedly filed additional liens totaling $1.9 million against his property.
So what happened?
According to reports, Scorsese’s tax problems were linked to his long-standing relationship with financial advisor Kenneth Starr—a once-prominent advisor who was later convicted and sentenced to 7.5 years in federal prison for running a $33 million Ponzi scheme. (And no, not that Kenneth Starr—though apparently there’s more than one.)
Scorsese wasn’t the only celebrity affected. Al Pacino also claimed Starr mishandled his finances after Pacino received notice of an IRS lien approaching $200,000. Suddenly, tax problems don’t seem so exclusive—if you’re dealing with the IRS, you’re basically in the same club as Scorsese and Pacino.
Scorsese’s spokeswoman later stated that the IRS had prematurely filed the lien, explaining that Scorsese already had an agreement in place and was making payments as required. She also noted that the tax debt was ultimately paid in full, though the explanation raised a few eyebrows—payment plan or fully paid? Hard to say.
So who’s right? An overzealous IRS or a defensive spokesperson? That debate can wait.
Regardless of where the blame lands, one lesson is clear: ignoring the IRS is never the answer. Even someone as successful as Martin Scorsese had to resolve his situation through what appears to have been an installment agreement and full repayment.
Tax problems don’t mean you’re a criminal—and they don’t mean you’re out of options. With the right strategy and experienced representation, IRS issues can be resolved.
If the IRS ever comes knocking, don’t freeze up like a bad extra in a mob movie. Handle it early, handle it properly and maybe take advice from a tax professional who isn’t running a Ponzi scheme. Preferably one from Wolf Tax.