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Wednesday, February 20, 2008

Actor Nicolas Cage Faces Off With IRS, Files Tax Court Petition Over Disallowed $3.3 Million Deduction for Personal Expenses

Faceoff 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."

http://taxprof.typepad.com/taxprof_blog/2008/02/actor-nicolas-c.html

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Actor Nicholas Cage and a corporation he owns are going to Tax Court to fight over $1.7 million in assessed... [Read More]

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Comments

Awwww....pure Cage has to pay up like the rest of us....awwww....suck it up Cage...with your crap acting you're lucky to even have a job...courtesy of your connections no less.

Posted by: Noz | Feb 20, 2008 3:45:05 PM

Hey Nicholas Cage, give Wesley Snipes a call, he did very well against these shake down artist at the IRS. Snipes can show you the light on battling the thieves and the American people will have your back.

Posted by: greenback | Feb 20, 2008 3:47:34 PM

This is what happens when you have over god knows how many of pages of IRS rules. Rules that curry favor and or disfavor depending on race, gender, employment, ect.
This is the evil of a progressive tax system. The CONgress has created a monster that is not bound by the constraints of the Constitution. Remember that document?

Posted by: home_alone | Feb 21, 2008 5:40:00 AM