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Tuesday, January 24, 2006

Slate: Can Someone Else Pay Your Taxes?

Interesting article in today's Slate on the Richard Hatch trial, Can Someone Else Pay Your Taxes? Sure, But Only If You Pay Taxes on the Taxes, by Daniel Engber.  Here is the opening:

Survivor winner and criminal defendant Richard Hatch says the show's producers are to blame for his failure to pay taxes on the million-dollar prize. His lawyer claimed on Friday that the producers promised to cover Hatch's tax liability if he kept quiet about cheating among the contestants. Can someone else really pay your taxes?

Yes. It's not uncommon for corporations to pay taxes on behalf of their high-level executives. If the Survivor staff wanted to cover Hatch's taxes, they could have added the cost of the taxes to his million-dollar prize, or reimbursed him the money after tax day.

Having someone else pay your taxes can get tricky, since the government counts the amount that person pays as taxable income.

(The reporter spoke with Anthony Infanti (Pittsburgh), Michael Kirsch (Notre Dame), Donald Tobin (Ohio State) and yours truly in preparing the story.)

http://taxprof.typepad.com/taxprof_blog/2006/01/slate_can_someo.html

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» NUDE DUDE'S FATE IN HANDS OF JURY from Roth & Company, P.C.
The tax evasion trial of Richard Hatch, went to the jury yesterday. Unless the O.J. jury has been re-empaneled, Mr.... [Read More]

Tracked on Jan 25, 2006 6:03:58 AM

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