Hatch Loses Immunity Challenge…

…Next Stop: Prison

Richard Hatch, the first Survivor winner, was convicted today of failing to report $1,037,000 on his tax return. He was found not guilty of related fraud charges.

Mr. Hatch has cemented a place in the Bozo Tax Criminals Hall of Fame (a website I’ll create one day). Let’s look at his stupid not so good actions.

1. Hatch goes to accountant #1, find out that he owes over $300,000 in taxes. He goes to accountant #2, and the tax bill is around $240,000. (At his level of income, some differences in taxes owed is normal.) He then asks accountant #2 what his return would be if he didn’t declare the $1 million in Survivor winnings. Accountant #2 makes Hatch sign a statement that he won’t file that return (it showed Hatch getting a $4300 refund). He filed that return.

2. The IRS amazingly discovers his tax evasion. (With perhaps 300 million witnesses, even the most inept attorney could prove he won $1 million.) He’s offered a plea bargain: pay your taxes, and we’ll let you off fairly easily on the jail time. He accepts the plea initially, then changes his mind.

3. The case goes to trial. Hatch claims that CBS should have withheld taxes. His attorney might want to ask any seasoned accountant about what you should do if taxes aren’t withheld but should have been. (Answer: you pay the taxes.)

4. Hatch’s attorney can’t find the OJ Simpson jury. (Hat tip: Roth Tax Updates)

5. Hatch is found guilty. Roth Tax Updates speculates that his sentence will be around 3 years in jail. Oh, he’ll also have to pay those taxes, and interest and penalties. The maximum possible sentence is 13 years in prison and a fine of $600,000.

News Story: CBC
US Government Press Release

Roth Tax Updates post on Hatch’s Sentence

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4 Responses to “Hatch Loses Immunity Challenge…”

  1. RICHARD HATCH: NOT A MODEL OF TAX PLANNING

    Russ Fox has the best summary I’ve yet seen of the Richard Hatch tax saga over at Taxable Talk….

  2. RICHARD HATCH: NOT A MODEL OF TAX PLANNING

    Russ Fox has the best summary I’ve yet seen of the Richard Hatch tax saga over at Taxable Talk….

  3. RICHARD HATCH: NOT A MODEL OF TAX PLANNING

    Russ Fox has the best summary I’ve yet seen of the Richard Hatch tax saga over at Taxable Talk….

  4. RICHARD HATCH: NOT A MODEL OF TAX PLANNING

    Russ Fox has the best summary I’ve yet seen of the Richard Hatch tax saga over at Taxable Talk….