Wednesday, February 20, 2008
Actor Nicolas Cage Faces Off With IRS, Files Tax Court Petition Over Disallowed $3.3 Million Deduction for Personal Expenses
Actor Nicolas Cage has filed a Tax Court petition (No. 934-08) contesting the IRS's determination that he personally owes $814,000, and his Saturn Productions of Los Angeles company owes $988,000, in taxes, interest, and penalties for 2002-2004. From Forbes:
The IRS says movie star Nicolas Cage used a company he owns to wrongly write off $3.3 million in personal expenses, including limos, meals, gifts, travel and his Gulfstream 1159A turbojet. ... The feds hit Cage both ways, denying Saturn a deduction for the disputed expenses while taxing Cage individually on the perks as salary and "constructive dividends."
Cage's business manager, Samuel J. Levin, says in an e-mail that the expenses were proper as "customary in the entertainment industry" and were partly based on the actor's "security needs."