Survivor Winner Accused of Cheating IRS

[OneFinger]

Richard Hatch, the first winner of CBS's "Survivor," was charged today with failing to report his $1 million reality TV windfall to the Internal Revenue Service. The two-count criminal information, unsealed today in U.S. District Court in Rhode Island, charges Hatch with filing a false 2000 tax return that omitted his seven-figure "Survivor" winnings.

 

The nudity enthusiast, 43, is also charged with filing a false return for 2001 (he allegedly did not report $321,000 paid to him by a Boston radio station).

 

If convicted of the felony charges, Hatch could face a maximum of five years in prison for each count and could be hit with a $250,000 fine. Hatch is scheduled to be arraigned on the charges in Providence federal court January 24.

 

To read the actual indictment, go to:

 

http://www.thesmokinggun.com/archive/0118051hatch1.html

 

http://www.thesmokinggun.com/graphics/art3/0118051inside1.jpg

[+ deej]

It was on CNN.com today too.

 

It's ironic. The IRS probably got half the mil in withholdings when it was awarded, and now he's facing another half-mil in fines. He may have done the show for free!

[BigK]

I read the indictment and surprisingly he was paid the full $1,000,000 without any withholding which the indictment states was deposited into his personal bank account. He also formed a Sub S Corporation the following year to deposit radio station earnings into and did not declare the income either corporately or personally. Also funds from the Corporation went into his personal bank account.

 

These amounts were not reported in at least 3 tax returns. That's filing false tax returns.

 

How he could have been so stupid is beyond belief. There are plenty of ways he could have legally lowered his tax liability.

[+ deej]

Apparently he thinks nobody at the IRS watches TV.

 

HELLO! :+

[OneFinger]

Didn't the IRS already get their cut from their agent that won on "Who Wants to be a Millionaire"? Hatch probably thought they didn't need any more money.

 

I honestly can't believe he was so blatantly stupid.

[+ deej]

That was my first reaction.

[Guest ReturnOfS]

I thought that Hatch was smarter than this. After I got over his "evilness" he became my favorite Survivor contestant of all time.

[Ignoto]

>

>I read the indictment and surprisingly he was paid the full

>$1,000,000 without any withholding which the indictment states

>was deposited into his personal bank account.

 

Why does that surprise you? Do you withhold taxes when you pay your house painter ... your car mechanic ...your accountant .... your escort?

[woodlawn]

RE: Speaking of Stupid

 

>>I read the indictment and surprisingly he was paid the full

>>$1,000,000 without any withholding which the indictment

>states

>>was deposited into his personal bank account.

 

>Why does that surprise you? Do you withhold taxes when you

>pay your house painter ... your car mechanic ...your

>accountant .... your escort?

 

Why would you think there would be any withholding obligation on the part of the payor in those situations?

 

Speaking of stupid, the idea that IRS found out about Hatch's unreported income by watching a television show definitely qualifies. While the producer of 'Survivor' need not withhold income taxes in such a situation, it does have the obligation to file a Form 1099 reporting the payment to IRS. Hatch was caught the way most tax cheats get caught -- IRS has software that compares amounts reported on 1099's and other mandatory disclosure forms with the income reported on the taxpayer's return. When the system finds a discrepancy, action is taken.

 

 

 

 

 

 

 

 

 

>

>

[JT Brooklyn]

RE: Speaking of Stupid

 

First "Prince" Harry... NOW "Queen" Hatch! I am thinking this will be his LAST 15 mins of Fame.. or Stupid Shame! :+ :+ :+

[Vincent_Michael]

I am kinda glad he is getting busted he strikes me as a total ass and its about time he got it....Now about my fealings with the IRS? Thats a totaly diffrent matter but I am sure you can guess how I feel.

[Guest skrubber]

Yes Vince he is a total ass. But, one thing for sure - don't fuck with the IRS.

[Ignoto]

RE: Speaking of Stupid

 

>>Why does that surprise you? Do you withhold taxes when you

>>pay your house painter ... your car mechanic ...your

>>accountant .... your escort?

>

>Why would you think there would be any withholding obligation

>on the part of the payor in those situations?

 

Exactly the point I was trying to make with the question I asked. Sorry it went over your head.

 

What did surprise me is that Hatch is gay. At least, the Boston Herald quotes him as describing himself that way. I guess I need to brush up on my reality-show trivia.

 

 

>Speaking of stupid, the idea that IRS found out about Hatch's

>unreported income by watching a television show definitely

>qualifies. While the producer of 'Survivor' need not withhold

>income taxes in such a situation, it does have the obligation

>to file a Form 1099 reporting the payment to IRS. Hatch was

>caught the way most tax cheats get caught -- IRS has software

>that compares amounts reported on 1099's and other mandatory

>disclosure forms with the income reported on the taxpayer's

>return.

 

Half right, which I guess makes you half smart? The Survivor producers issued a 1099, because the money was paid to Hatch personally. But the radio station did not issue a 1099 for the $321,000 the next year, because it was paid to the corporation Hatch had set up by then. There is no 1099 requirement for payments to corporations (unless they are doctors or lawyers).

[woodlawn]

RE: Speaking of Stupid

 

>Exactly the point I was trying to make with the question I

>asked. Sorry it went over your head.

 

Over my head? You mean like the floodwaters you predicted would inundate Fort Lauderdale last year? I believe you told us the entire city would be turned into a "bathhouse," did you not? Yes, you did.

 

 

>Half right, which I guess makes you half smart? The Survivor

>producers issued a 1099, because the money was paid to Hatch

>personally. But the radio station did not issue a 1099 for

>the $321,000 the next year, because it was paid to the

>corporation Hatch had set up by then. There is no 1099

>requirement for payments to corporations (unless they are

>doctors or lawyers).

 

My post referred only to the payment by the reality show and said nothing about the payment by the radio station, so it was entirely correct, not partially correct. Sorry that went over your head.

[JT Brooklyn]

IF Hatch gets Jail Time "SURVIVOR" is going to take on a whole new meaning for him!! His Bitchy little comments aren't going to impress the Guys. He definitely isn't going to be looked at as "Sweet Meat" either! I wish him luck if he does get time..Don't screw with the IRS.. ESPECIALLY when you are a "high profile" anything! :+ :+ :+

[Ignoto]

RE: Speaking of Stupid

 

>Over my head? You mean like the floodwaters you predicted

>would inundate Fort Lauderdale last year? I believe you told

>us the entire city would be turned into a "bathhouse," did you

>not? Yes, you did.

 

You really should seek professional help for this grudge that obsesses you about my comments on Florida weather. For those who have a sense of humor (obviously, a category from which you are excluded), here is the exchange I had with another poster last September who was considering the rather foolhardy option of visiting Ft Lauderdale when much of South Florida was threatened by a hurricane

 

===>Going to be in Ft Lauderdale labor day weekend. While I've

>been there before, can some fellow posters make some

>recommendations for bars ,bathhouses,or bookstores.

 

Spending the weekend in Baghdad might be safer. Hurricane Frances could very well turn the whole city into a bathhouse. When the flood recedes, the open-air atmosphere at the bars and bookstores might be unusual.===

 

 

>My post referred only to the payment by the reality show and

>said nothing about the payment by the radio station, so it was

>entirely correct, not partially correct. Sorry that went over

>your head.

 

What your post said can be read above, by anyone who cares. The part where you distinguished between unreported income that came from the Survivor show, and the unreported income that came from the radio station, must be written in invisible HTML.

 

Go ahead and have the last word now -- but really, try to do something about your Alpha personality before you have a heart attack.

[woodlawn]

RE: Speaking of Stupid

 

>You really should seek professional help for this grudge that

>obsesses you about my comments on Florida weather.

 

Why the fuck would I give a shit about the advice of someone like you? If I were crazy enough to do that, THEN I would really be in need of professional help.

 

> For those

>who have a sense of humor

 

I'm well aware you don't like being reminded that your predictions of disaster for Fort Lauderdale proved to be totally unfounded. That's why I brought the matter up. And I'll do so again whenever it seems to me that you are in need of a reality check.

 

>

>>My post referred only to the payment by the reality show and

>>said nothing about the payment by the radio station, so it

>was

>>entirely correct, not partially correct. Sorry that went

>over

>>your head.

 

>What your post said can be read above, by anyone who cares.

>The part where you distinguished between unreported income

>that came from the Survivor show, and the unreported income

>that came from the radio station, must be written in invisible

>HTML.

 

Only those who suffer from dyslexia could possibly have missed my statement that the 1099 was sent in by the producer of 'Survivor.' If you suffer from that affliction, that explains a lot about your posts here.

 

>Go ahead and have the last word now -- but really, try to do

>something about your Alpha personality before you have a heart

>attack.

 

Just what this board needs -- another amateur psychiatrist who posts bullshit 'diagnoses' of the emotional problems of people he has never even met. We really didn't have enough of those.