“Survivor” Richard Hatch Wins Free Lodging and Meals for 51 Months

A federal judge sentenced Richard Hatch, the winner of the first “Survivor” television show, to 51 months in prison for evading income taxes. In January, a jury found him guilty of tax evasion and filing a false return for not reporting to the IRS about $1.4 million that he earned from the Survivor television show and other sources.

The judge enhanced Hatch’s sentence for obstruction of justice. The government asked for that enhancement arguing that Hatch perjured himself during the trial and failed to disclose assets. Hatch must also pay taxes he owes, about $475,000, plus interest and penalties.

Tax Increase Prevention & Reconciliation Act of 2005

On May 17, President Bush signed into law the Tax Increase Prevention and Reconciliation Act of 2005 (the “Act”).

The biggest winners under the Act are stock investors, business owners, individuals with large individual retirement accounts (IRAs), musicians and songwriters, and upper-middle class taxpayers who are subject to alternative minimum tax (AMT). The losers include kids 14 through 17 who have large amounts of unearned income and U.S. citizens working abroad.

Highlights of the Act include: (1) an extension of AMT relief along with an increase in the AMT exemption amounts; (2) an increase in the age limit to which the kiddie tax applies; (3) a modification of the wage limit for purposes of computing the domestic production activities deduction; (4) a two-year extension of reduced capital gains and dividend rates; (5) a two-year extension of enhanced Code Section 179 expensing; (5) the elimination of income limitations on Roth IRA conversions for years after 2009; (6) a modification of the exclusion for citizens living abroad; (7) capital gains treatment for certain self-created musical works; (8) amortization of expenses incurred in creating or acquiring music or music copyrights; and (9) a partial payment requirement when submitting an offer in compromise.

http://www.kleinrock.com/taxsuite/DailyTaxBulletinIssues.aspx?selectedindex=2.3

Stupid IDJIT.

This is almost Shakespearean.