IRS Releases Tax Lien on Lindsay Lohan

Actress Lindsay Lohan has paid off nearly half her tax debts, thanks to financial assistance from fellow actor Charlie Sheen, prompting the IRS to release her from a tax lien after seizing her bank account.

The Mean Girls actress paid $93,701.57 to settle her 2009 federal tax debts, according to TMZ. The IRS issued her a certificate of release of the federal tax lien on December 12.

Sheen, her co-star in the upcoming Scary Movie 5, reportedly paid $100,000 of Lohan’s tax debts after she confided her financial problems to him (see Charlie Sheen Pays $100,000 of Lindsay Lohan’s Tax Debt). The remaining money, $6,300, has been applied to her 2010 tax debt of $140,203, leaving her with a tax debt of about $133,000. Her business manager has reportedly been making arrangements to pay off the balance.

“Lohan’s business manager is working out an acceptable arrangement with the IRS and hopes to have the matter resolved shortly,” spokesman Steve Honig told E! News in February.

Earlier this month, the IRS reportedly seized Lohan’s bank accounts because of her outstanding tax debts (see IRS Takes over Lindsay Lohan’s Bank Accounts).

Lohan has also been facing trouble on the legal front. Earlier this month, a Los Angeles court revoked her probation after she crashed her car in June on the Pacific Coast Highway in Santa Monica and then denied she was behind the wheel. She had been serving probation after pleading no contest to charges of stealing a gold necklace from an LA jewelry shop last year.

In New York too, the actress, who recently played Elizabeth Taylor in the TV movie Liz & Dick, has also been in legal hot water. Late last month, she was arrested for allegedly punching a woman who wanted to read her palm at a New York City nightclub, telling her, “I need space.”

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