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More Aggressive IRS Fights the Shrinking Tax Gap
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In 2000, when CBS broadcast the first season of the reality TV show Survivor, Richard Hatch became an overnight star.
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People across America knew him as the shirtless islander who had cooked up the perfect strategy to stay the longest on the island and win $1 million.
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After winning Survivor, Hatch’s career took off. The man from Providence, R.I., returned to star in a number of other reality shows, including Survivor: The Amazon - The Reunion in 2003 and Battle of the Network Reality Stars this year.
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Hatch’s strategy on Survivor and other television shows has been perfect. But he hasn’t had as much luck with the Internal Revenue Service.
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Hatch, now 44, was indicted in September by a grand jury in Rhode Island. The 10-count indictment charges Hatch with tax evasion, tax fraud, and a scheme to defraud a charitable organization.
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According to the indictment, Hatch hired two accounting firms to prepare his 2000 tax return. Both firms accounted for Hatch’s $1 million in Survivor winnings.
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The first company estimated that Hatch owed $441,501 in taxes. The second estimated $234,807.
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Hatch apparently didn’t like either number. According to the indictment, Hatch instructed one of the firms to put together a tax return that did not include his $1 million in winnings. That firm, authorities say, instructed Hatch that the return was for “informational” purposes only.
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But the Survivor winner had another strategy: He filed that informational return, the indictment says.
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And the federal government — surprise, surprise! — found out.
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That’s not all.
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While investigating Hatch’s alleged tax evasion, the government discovered other alleged crimes. According to the indictment, Hatch also:
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Did not report to the IRS a $27,074 Pontiac Aztec given to him in 2001 as part of his Survivor prize.
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Did not report $326,540 for appearances on a radio show.
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Allegedly used $36,500 in charitable donations for personal use.
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Allegedly used for personal purposes a $10,000 prize from The Weakest Link that was supposed to go to charity.
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Recently convicted, Hatch faces up to five years in prison and a fine of up to $250,000 for each of the 10 counts.
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Darrin T. Mish is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems.He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel's Bar Register of Preeminent Lawyers. He can be reached at his website at http://www.getIRShelp.com
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