Terrence Howard Ordered to Pay Nearly $1M in Federal Tax Evasion Case (2024)

A federal judge in Philadelphia has ordered Terrence Howard to pay a penalty-heavy $1 million in back taxes — a skirting of payment that the actor justified in a voicemail to an official where he asserted that it’s “immoral” for the government to tax the descendants of slaves.

The Academy Award-nominated actor has been pursued by the Justice Department for over a year for non-payment of a $578,000 income tax bill covering what he owed from his 2010-2019 returns. Howard, 54, has not responded to the DOJ or turned up to hearings, so on Feb. 22, the Eastern District of Pennsylvania Found in favor of the federal government and leveled a $903,114.72 judgment against the actor. That figure accounts for unpaid federal income tax assessments, penalties and interest for the 2010, 2011, 2016, 2017 and 2019 tax years, according to the judgment obtained by The Hollywood Reporter, and accrued interest up to December of 2023 — which has and will continue to pile up until Howard pays.

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While the Empire star declined to defend himself in court, his justification for the longtime nonpayment of his income tax bill was given in a voicemail that the court attached to its ruling. After the Justice Department escalated the situation by filing a lawsuit against Howard in 2022, the actor allegedly responded to a voicemail that the case’s top DOJ attorney, Maria Elizabeth Ruwe, left with a claim that he would post the suit online in an attempt to shame her.

“Four hundred years of forced labor and never receiving any compensation for it. Now you have the gall to try and prosecute and charge taxes to the descendants of a broken people that you are responsible for causing the breakage,” Howard said in the message before it briefly cuts off; he then continued after calling back, according to the judgment. “In truth, the entire United States should, by default, become the property of the descendants of slaves. But since you do not have the ability [or] the courage to do it, let’s try this in court … We’re gonna bring you down.”

In a career that’s included portraying men who have been dogged by legal troubles — one Empire plot arc has his drug dealer-turned-music-mogul hounded by the DOJ — the case is the latest in a rocky few decades for Howard that has seen art imitating life imitating art.

Howard’s career began in the 1990s with brief TV roles giving way to supporting film work in ensemble comedies and Hollywood fare, which led to his casting in Crag Brewer’s Hustle & Flow. Prior to this breakthrough performance, he’s had multiple run-ins with the law for domestic violence and once for allegedly physically attacking a flight attendant. The actor’s failure to pay taxes dates back to this period, as liens were placed on his property in 2005 and 2006, as the Philadelphia Inquirer reports; in 2019, another lien dating back to 2010, to the tune of $144,000, was placed on his California property, this got him named on the state’s list of the 500 largest tax delinquencies, with a $256,000 tab, the paper reports.

In this period, Howard’s ongoing success in Hollywood landed him the role of James Rhodes in the 2008 smash hit Iron Man. However, he was jettisoned from the fledgling Marvel Cinematic Universe for the sequel after, as he told Andy Cohen in 2013, the smaller role for Rhodes on the follow-up movie led Marvel to try to renegotiate his salary.

Ensemble roles followed in films like Prisoners and The Best Man Holiday, but in 2015 a now-notorious Rolling Stone article titled “Terrence Howard’s Dangerous Mind” went viral. In the piece, Howard discusses his invented language, Terryology; he claimed that it will be used to logically prove that 1 x 1 = 2; what he calls proof of this came in a highly criticized 2017 tweet.

This is the proof to the World of Science and Mathematics that 1×1=2.#mathematics #worldofscience @rollingstone #proof pic.twitter.com/7uOMrNshia

— Terrence D Howard (@terrencehoward) November 1, 2017

Despite the widespread confusion that came with the Rolling Stone story, his career’s next chapter began in 2015 when he took on the role of Lucious Lyon in the runaway Fox hit, Empire. Years later, a similar cat-and-mouse game that Lyon played with the Justice Department played out in Howard’s own life when he seemingly made a series of evasive moves to slip away from being served notice of this latest lawsuit.

According to prosecutors, attempts were made at a motel where Howard was believed to be staying while filming in Jackson, Mississippi; later, two tries filed at separate properties in Philadelphia; once in Chicago and another fruitless attempt in La Habra, California, where a process server reported hearing what sounded like Howard cursing in a back section of the home, which belonged to his wife.

Howard was eventually served at the Twin Cities Film Festival in September, where prosecutors discovered he was scheduled to appear in conversation.

In December, Howard filed an unrelated conflict of interest case against CAA over his Empire salary. In the suit filed in Los Angeles Superior Court, Howard alleged the agents who packaged his deal with Fox prioritized their own interests and those of the show’s producers, which it also represented, by inducing Howard to take below-market salaries for the lead role.

A message left on Friday with an attorney representing Howard was not immediately returned.

Terrence Howard Ordered to Pay Nearly $1M in Federal Tax Evasion Case (2024)

FAQs

Terrence Howard Ordered to Pay Nearly $1M in Federal Tax Evasion Case? ›

Actor Terrence Howard has been ordered by a federal judge to pay nearly $1 million in back taxes, interest, and penalties. The action comes after Howard allegedly threatened a Justice Department lawyer and claimed that it is “immoral for the United States government to charge taxes to the descendants of slaves.”

Which empire star hit with almost $1 million judgment after saying it's immoral to tax descendants of slaves? ›

Terrence Howard Ordered to Pay Nearly $1M in Federal Tax Evasion Case. The latest legal entanglement for the Oscar-nominated actor came after he told a DOJ official that it is "immoral" to tax the descendants of slaves.

What actor owes $1 million in taxes? ›

A federal judge in Philadelphia has ordered Academy Award-nominated actor Terrence Howard to pay nearly $1 million in back taxes, interest, and penalties after he allegedly threatened a Justice Department lawyer and maintained that it was “immoral for the United States government to charge taxes to the descendants of ...

How much does Lil Wayne owe the IRS? ›

One of the liens was from 2011 for failure to pay an over $7 million tax debt. The other was from 2012 for $6.8 million, totaling $14,194,944. According to a 2018 report from USA Today, Lil Wayne expressed his gratitude to Jay-Z for stepping in and helping him out of his tax debt.

Which billionaire doesn t pay taxes? ›

If that sounds impossible to achieve, just look at the leaked tax returns of the wealthiest Americans that nonprofit news site ProPublica analyzed in 2021: Over several years, billionaires Elon Musk, Jeff Bezos, and Michael Bloomberg, among others, paid no federal income taxes at all. How do they do it?

How much tax is owed on $1 million dollars? ›

If you make $1,000,000 a year living in the region of California, USA, you will be taxed $477,486. That means that your net pay will be $522,514 per year, or $43,543 per month. Your average tax rate is 47.8% and your marginal tax rate is 52.9%.

How much did Terrence Howard ask for? ›

According to Howard, he asked the film's producer, Avi Arad, to take one million out of the $4.5 million he was getting and use to cast Downey Jr. "I love Robert. I love what he does. I loved him in Weird Science.

How much money did Terrence Howard make per episode on Empire? ›

He started out earning $125,000 per episode and never got higher than $325,000 per episode, he said.

How much did Terrance Howard make for the crash? ›

When you are the star of the movie and make more money, you are expected to bring in more money for the people who paid you. I am ready for that responsibility.” Meanwhile, for the movie 'Crash,' Terrence revealed he only pocketed $6,000. “The business doesn't pay the actors anything.

Which actress was jailed in 1982 for tax evasion? ›

On 19 May 1982, Italian film star Sophia Loren started a prison sentence for tax evasion. The idol of the silver screen was jailed near Naples in an incident which caused fans around the world to rally in her support.

How do celebrities end up owing taxes? ›

Celebrities have erratic pay cycles. They may have years where they have massive contracts and then very little income the next year. That frequently leads to tax issues, as they think they can use money from next year and have difficulty budgeting or saving.

Did Wesley Snipes not file taxes? ›

Wesley Snipes went to jail for tax evasion

The famed actor, think 1990s classics like "Mo' Better Blues" "Passenger 57," and "Blade," was convicted of three misdemeanor counts in 2008 for failing to file tax returns from 1999 to 2001.

How much did Steve Harvey have to pay in back taxes? ›

Someone discovered a box of Harvey's paperwork. with checks worth seven years of unpaid taxes. It was then that he realized. that he owed the IRS 22 million.

How much money did Wesley Snipes lose in taxes? ›

Snipes still owed $23.5 million in back taxes when he was set free. In order to resolve his tax debt, the actor made an OIC of $850,000, or about 4% of the amount he owed.

Who was the first male actor to be paid $1 million for a movie role? ›

Lewis Milestone's Mutiny on the Bounty, starring, of course, Marlon Brando was the first Hollywood movie actor to break the $1 million dollar mark for his services in the lead role of Fletcher Christian.

How much tax did Martha Stewart owe? ›

26. Martha Stewart • Debt: $222,000 Daytime TV host and lifestyle maven Martha Stewart failed to pay $220,000 in taxes on an estate she owned, arguing that she wasn't there enough, so she shouldn't pay the tax. The IRS decided that was not a good thing and she eventually paid the amount in 2002.

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