Tax evader

[bazooka]

http://reuters.excite.com//article/20050118/2005-01-18T191808Z_01_N18210285_RTRIDST_0_...RVIVOR-DC.html

First 'Survivor' Winner Dodged Taxes: Prosecutors
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Jan 18, 2:18 PM (ET)

BOSTON (Reuters) - He survived one of the toughest tests of reality television but now Richard Hatch, the first winner of the U.S. TV series "Survivor," is facing his toughest challenge yet.

Hatch failed to report the $1 million he won on "Survivor," federal prosecutors said on Tuesday as they charged him with filing false tax returns.

The 43-year-old Hatch, whose brash strategizing propelled him to victory in 2000's "Survivor" series on CBS, is charged on two counts in a lawsuit filed in U.S. District Court in Providence, Rhode Island.

Prosecutors said Hatch not only failed to report his $1 million winnings in federal tax returns but also left off more than $300,000 that a Boston radio station paid him to co-host a program in 2001.

Hatch, who lives in Newport, Rhode Island, could face up to 10 years in prison and a $500,000 fine if convicted on both counts, prosecutors said in a statement. He was due to be arraigned on Monday in Providence, they said.

Hatch was not immediately available for comment.

The first "Survivor" became a ratings sensation and helped spark a boom in reality-based TV shows.

He does not sound like a very smart person.

[ViRaL1]

Like no one's going to notice.

Where can I get a 'People are Stupid' t-shirt?

[zzyzzx]

I'm sure that CBS witheld a lot from his $1M check, so it seems unlikely that he owes much on that. Also, since he's gay, he might actually like prision, seeing how gay sex is so popular there.

[zzyzzx]

I wonder if he will show up for the sentancing naked?

[bazooka]

I wonder if he will show up for the sentancing naked?

If he does, that would add more charges, like indecent exposure and contempt of court.

[BJ_M]

I'm sure that CBS witheld a lot from his $1M check, so it seems unlikely that he owes much on that. Also, since he's gay, he might actually like prision, seeing how gay sex is so popular there.

cbs says they didnt -- which was pretty odd , as in the usa, even casinos will withhold at the source , part of big winds ...

in canada , all such winnings , from casino, lotteries and contests are tax free .. no mater the amount or where won ..

[BJ_M]

pretty stupid not to declare it either -- like they didnt notice the show ?

[zzyzzx]

cbs says they didnt -- which was pretty odd , as in the usa, even casinos will withhold at the source , part of big winds ...

in canada , all such winnings , from casino, lotteries and contests are tax free .. no mater the amount or where won ..

I'm reasonably sure that there is a legal requirement to withold...

[BJ_M]

maybe not if they paid it to a company instead .... he may have set him self up as a corporation

[adam]

Well, game shows really aren't even treated like casinos under most circumstances because nothing is wagered, but the US Federal income tax code only requires casinos to withhold winning under certain circumstances. Basically it has to be what's called a buy-in game, like a lottery or sweepstake, or the winnings have to exceed 300x the amount wagered. Other than that, they can only withhold if you fail to provide your Tax ID number, and just about any income is subject to withholding if they are a foreign citizen.

But, if the casino is located in a state that has state income taxes then there may be...hell there WILL be a law requiring the casino to withhold funds for those taxes.

So depending on the state they are in, sure CBS might not have been legally required to withhold anything from the fat naked guy. But they were required to report the payment to the IRS so its not like Uncle Sam wouldn't have noticed his failure to include it in his income...not to mention the fact that it was on national (international?) television and highly publicized.

If you win a million dollars that will just about guarantee you an audit for that year right off the bat. This guy is an unbelievable idiot.

[Craig Tucker]

Winnings of this type - gameshows lottery etc, are tax free over here.

[thecoalman]

My Dad won a few thousand in a Casino, he had to fil out tax form. Gave him a W-2 right on the spot I think.

[adam]

If its $600 or more, they have to give you a W-2 and report the specific transaction to the IRS.

There are some interesting Tax Law cases where individuals tried to cash in BIG wins in many increments of $599. Needless to say, that didn't go over so well with the IRS.

If you win a million dollars on an American game show you will be lucky if you take home half. Looking at how this is going, I'm thinking this Hatch guy is going to end up losing money on this whole thing.

[pacmania_2001]

In Australia a lottery win or win on a gameshow is considered a winfall and is exempt from tax.

The Australian Tax Office has a loophole where by if you make regular appearances on say a reality TV show (i.e big brother, survivor) then the winnings are then considered a fee for the appearances and are then taxable.

[ViRaL1]

Reminds me of a quote from a different branch of 'government.'

'You mustn't F**K with the Department of Motor Vehicles'

(Anyone remember that one?)