Taxable Talk

From Russ Fox, E.A., of Clayton Financial and Tax of Irvine, CA
All items below are for information only and are not meant as tax advice.
Please consult your own tax advisor to see how each item impacts your own situation.
Survivor: Morgantown Renewed for 12 Months
Richard Hatch, the Survivor winner who was convicted of tax evasion, won't be leaving the Morgantown, West Virginia Federal Correctional Institution anytime soon. The US Supreme Court declined to hear his appeal today.

Mr. Hatch had charged that the trial court didn't allow him to ask certain questions on cross-examination. The Appeals Court had ruled, "Here, the district court's limitations on cross-examination in this nine-day trial were thoughtful and far from being excessive."

And that's it. There are no more immunity challenges left, no more places to appeal. Mr. Hatch will have to serve out the remaining twelve months of his sentence. In the end the 300 million witnesses were correct.

Hat Tip: How Appealing
Escort to Evasion
Christina Warthen appeared to have everything. She's a graduate of Stanford Law School. She's married to the founder of Ask Jeeves (now Ask.com). She's also allegedly a tax evader who ran a high priced escort service called TouchofBrazil.net.

Back in 2004 IRS agents raided her apartment and other locations seized over $61,000. That was just some of the funds that she allegedly earned from her business; the IRS alleges she cleared over $133,000 but didn't file a tax return. Whether her business was an escort service or an older profession isn't relevant—all income, legal or illegal, is generally taxable.

Mrs. Warthen will be arraigned later this week; she faces one count of tax evasion. So if you have an escort business try to remember to file your tax returns. If you don't you may find yourself escorted to ClubFed.