September 9, 2008
Bangkok (and IRS) Dangerous: Nicolas Cage Settles Tax Court Case for $666k
Earlier this year, I blogged actor Nicolas Cage's Tax Court Petitions, which contested the IRS's determination that he personally owed $814,000, and his Los Angeles production company (Saturn Productions, Inc.), owed $988,000, in taxes, interest, and penalties for 2002-2004:
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."
Cage has settled both cases, agreeing to pay a total of $666,465 in taxes and penalties for 2002-2004:
- Nicolas Coppola v. Commissioner, No. 934-08 (Aug. 7, 2008) ($281,294.80 -- $246,391 in taxes and $34,903.80 in penalties)
- Saturn Productiuons, Inc. v. Commissioner, No. 29461-07 (Aug. 1, 2008) ($385,170.20 -- $321,000 in taxes and $64,170.20 in penalties)
Press and blogosphere coverage:
(Hat Tip: Sarah Lawsky.)
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I always say that even the rich and famous have to pay taxes. And while being a Copolla may get you special treatment at Nobu, it won't get you special treatment from the IRS (as some people might think). I wrote about the settlement on my blog, please check it out: http://www.taxresolution.com/blog/?p=296
Posted by: Michael Rozbruch | Sep 12, 2008 2:55:36 AM