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While you may think that everyone who was involved inBreaking BadAll five of its highly acclaimed Emmy-winning seasons brought in a significant amount of money, but it turns out this wasn’t the case for one member of the White family.
RJ Mitte, known for portraying Walter White’s son Walt Jr., recently shared that he left the show with significant debt instead of financial gain.
He told The Iced Coffee Houra podcast discussing a difficult scenario in which he placed his trust in the wrong individual to manage his financial matters (1)
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I’ve paid more in taxes than I received from Breaking Bad,” Mitte stated. “I did have a poor business manager.
It seems that his business manager was not genuinely performing the tasks she was being compensated for:
I write a check to pay my taxes, but rather than using it for that purpose, she would send me a fake tax return and take the money.
After funneling his tax money abroad for five years, eventually the tax authorities arrived, and Mitte was plunged into a terrible predicament.
Then, about five years later, with compound interest at around 17% on that total amount each year, you end up with a substantial check,” he said, explaining that his unpaid taxes had grown to a much larger sum than what he had ever earned from the show. “It only took me 10 years to settle it.
Co-host Jack Selby wondered if she faced consequences for the scam.
“Is she still employed today, or is she in prison?” he inquired.
“She’s around,” Mitte replied.
How could this happen?
Unfortunately, since the responsibility to pay taxes still lies with the taxpayer, Mitte had limited options. He was still required to settle his taxes, along with all the accumulated interest.
The IRS isn’t really concerned with you,” he stated. “They only care that you ensure you’re paying your taxes — and if anyone else is involved, it’s your responsibility because you failed to perform your necessary checks.
What was his action upon receiving the IRS notice?
You contact your CPA, you reach out to a certified, well—not her—instead, you consult another lawyer,” Mitte said. “You speak with a forensic accountant, and then you determine, okay, what actually occurred?
Even worse, he was not her only victim. Like most fraudsters, she focused on those who were vulnerable.
He informed the hosts that she also stole from 14 other actors he communicates with — all of whom are disabled or older individuals in the industry.
The hosts questioned why Mitte didn’t take legal action against her. He clarified that the process is deliberately complex and costly, which discourages vulnerable victims from proceeding.
[The money is] also transferred — It’s not under her name … it’s very complex. We’ve traced it to offshore account shell companies,” he said. “We’re not referring to hundreds of thousands of dollars, we’re talking about tens of millions of dollars.
Once it leaves the country, there’s not much you can do about it.
Mitte pointed out that since she focuses on older actors and individuals with disabilities who receive organized compensation—essentially, depending on their agreement, they might earn the majority of their income gradually over many years through residuals (2)—they lack the substantial time and resources needed to pursue her.
you’re discussing years of legal battles, appeals, and forensic accountants — so the expenses are likely to reach into the millions,” he stated. “and then it’s like, can you get back what you lost? Probably not.
How to prevent a tax disaster
Although you may not be a celebrity involved in one of the most popular shows ever, similar fraudulent activities occur to individuals globally when they place trust in the wrong people. However, there are several methods to safeguard yourself against these dishonest individuals.
Read More: Facing retirement without savings? There’s no need to worry, you’re not the only one. Here are6 simple methods to get caught up (and quickly)
Monitor your financial situation closely
What is Mitte’s advice now that he has gone through this? Be aware of where every dollar you make is being spent.
Capture it, note every dollar, monitor it,” he stated. “Understand where you are spending your money, and how you are spending it.
He explained that technology is actually assisting vulnerable individuals in avoiding such circumstances, as digital banking prevents scammers from concealing information within a pile of papers on a shelf, as they previously could.
It’s truly about understanding where your money is coming from and where it’s being spent.
A financial tracking app can assist you in monitoring each dollar instantly, ensuring you are always aware of your spending.
If handling a budget seems difficult for you, applications such asRocket Money can simplify the process.
Rocket Money monitors and sorts your spending, offering a comprehensive overview of your cash, credit, and investment accounts in a single location. It can also identify unused subscriptions, allowing you to eliminate extra expenses and potentially save hundreds each year.
For a small charge, the application can alsosecure reduced charges for your recurring expenses, which makes it a useful resource for managing your financial situation.
Set aside money for tax season
If you are self-employed or manage your own business, similar to how actors do, it’s important to reserve a part of your earnings for tax purposes. As taxes aren’t taken out automatically as they would be with regular employment, it’s your responsibility to make sure you don’t use that money.
Even if you save enough, it won’t shield you from these fraudulent business managers, but it will guarantee that you have the money readily accessible when taxes are due. If you can’t pay on time, the amount you owe will be charged with compound interest, which, as seen in Mitte’s case, can get completely out of hand very quickly.
Certainly, you wouldn’t want a large sum of money in a standard checking account that doesn’t generate any interest, so it’s logical to place these funds in a high-interest account instead.
To begin with, a high-yield account, such as aWealthfront Cash Account, can serve as an excellent option for building your emergency savings, providing favorable interest rates along with convenient access to your money when necessary.
A Wealthfront Cash Account offers a base variable APY of 3.25%, but new customers may receive an additional 0.65% during their initial three months.a cumulative APY of 3.90%generated by program relies on your unused cash. That’s eight times the national deposit savings rate, as reported by the FDIC in December.
No minimum balances or account fees, along with 24/7 access to withdrawals and free domestic wire transfers, allow you to keep your money available whenever you need it. Additionally, the Wealthfront Cash Accountup to $8 million in balances are protected by insurancethrough FDIC-approved banks.
Collaborate with a mentor you have confidence in
When it comes to who handles your finances, Mitte’s case demonstrates how crucial it is to find someone you can truly rely on.
Prior to selecting a financial advisor or another money management expert, speak with several financial managers and request their references. Make sure to confirm that these references are genuine, and also think about reaching out to your personal connections for suggestions. They can help identify if they have encountered any warning signs personally.
If you’re uncertain about locating a certified consultant, think aboutAdvisor.com. Simply answer a few brief questions and share your ZIP code to be connected with the most suitable advisors for your situation.
Trained financial experts affiliated with them are equipped to assist with various financial scenarios, including budgeting strategies for independent workers, retirement preparation, evaluating your investment portfolio, and spreading out your assets.
Book a free consultation with your top selectionsto locate the appropriate counselor for you right now.
How to get yourself out of debt
If you are facing a comparable overwhelming debt scenario, you may also explore solutions for debt relief.
Combining all your outstanding debts into a single personal loan viaCredibleis a smart method to eliminate your debt more quickly. Rather than handling several monthly payments, you’ll have a single, consistent payment to handle every month.
Via Credible’s digital platform, securing the appropriate loan is significantly easier. Credible allows you toCompare and shop for the lowest interest rateswith only a few clicks
Within three minutes, you’ll be able to view all the lenders who are ready to assist in settling your credit card balances or other debts through a single personal loan.
If you have a significant debt, you might also want tocheck if you are eligible for a debt relief programto assist in eliminating a large part of your debt.
With Freedom Debt Relief, you have the opportunity toTalk to a licensed debt relief specialist at no cost, who can demonstrate how much you can save by collaborating with them.
If you qualify, they can work with your creditors to settle your debts until all enrolled obligations are settled.
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@theicedcoffeehour (1); Spotlight (2)
This article offers information solely and should not be interpreted as guidance. It is made available without any form of warranty.