Posted on 01/18/2005 12:11:11 PM PST by OrangeDaisy
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.
Got it thanks. That's what I was wondering.
I don't think this fellow Hatch was living abroad, but if so:
One must be resident abroad 320 days of the current tax year to obtain the U.S. foreign exclusion deduction. Right now, that exclusion is about the first $80K of gross, foreign-earned income.
Any remaining income (above $80K) is taxed at the U.S. tax rate, less deductions such as *foreign tax payments* (which are usually required after 90 to 180 days of residency in another country).
The deduction for foreign taxes and the $80K exclusion are the only "benefits" afforded to expats by the U.S. tax code.
But I've been through this before, and the calculations can get rather complex. Since most foreign tax rates are so ridiculously high, expats usually will need an increase in salary to break even versus working in the U.S., *even computing the $80K U.S. tax exclusion*.
Not that there's anything wrong with that.
Cool thanks. I was wondering what the code says.
And get this: the U.S. is the only industrialized country in the world that taxes foreign expat workers, who are typically paying taxes wherever they work abroad.
Well Richard Hatch, there are only two things certain in life:Death and taxes and since you are not deceased, Uncle Sam wants his money.I am sure making 28 cents an hour in the joint you will have the IRS paid back in 300 years!
Be Sure To Drink Your Ovaltine.
Let us not forget that this is the same sodomite who was arrested for abuse of his adopted. Strangely, the charges were dropped about a month before CBS had their first Survivor season finale and Hatch was awarded the prize.
He was also arrested for domestic violence against his "partner" - after he got his "son" back.
Wow - a loudmouthed, sneaky, "LOOK AT MEEEE!" sodomite with a history of violent and anti-social behavior is now found out to be a tax cheat! Color me shocked!
Yet - the MSM will still put him on a pedestal. Part of the joys of being in a protected class, I suppose.
Still thinking about Ralphy three weeks later, eh?
Lol!
My wife got me the DVD and a Ralphie bobble head for Christmas.
Most lareg companies prefer to withhold taxes, even though it costs them $$$in FICA, because this way the IRS cannot come back at them..which it often does. However, in this case, they wouldn't want to imply an employer/employee relationship with a contestant..Also..being able to file a schedule C has tax advantages for the recipient..
Richard was right in deciding that tax rates are too high, however, his reponse to the problem was wrong. The solution is to vote Republican (well, most of the time, anyway), not become a tax evader.
Too bad for him we don't have the Fair Tax yet.
Strategy?
Entirely possible.
No so fast. If they fine him $500,000 plus make him pay the back taxes plus penalties and interest, he will be an ex-millionaire. Still gay, though.
That's right. The television network filed a 1099 form because they had to explain where the $1 million went (so they could legitimately claim it as an expense), but Mr, Hatch didn't include it on his own tax return.
Now it's all coming back to me. If Hatch provided CBS his SSN and CBS had no notification from the IRS to do backup withholding, then CBS had no obligation to do tax withholding from the prize money. But on the other hand, if you win big in Vegas, don't they take the taxes right then? Looks like the IRS would wise up and make game show winners do the same.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.