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."
- ABC News: Cage Accused of Tax Fraud
- New York Post: Cage v. IRS
https://taxprof.typepad.com/taxprof_blog/2008/02/actor-nicolas-c.html
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