Thursday, October 11, 2012
Blogger Pleads Guilty to Failing to Pay $142,000 of Taxes on Advertising Revenues
Joe Kristan: Blogger Makes Enough Money to Get Into Tax Trouble!:
A tax crime out of Massachussets gives hopes to starving bloggers everywhere. From the Milford Daily News:
David Altavilla, 45, pleaded guilty to charges of filing a false income tax return. ... Authorities said in the press release that Altavilla operated an Internet blog called “hothardware.com” as a side business to supplement his regular employment. Altavilla sold advertising space on the site, which contained contributor articles reviewing computers, computer components, and other related items, said authorities.
In 2006, 2007 and 2008, Altavilla under-reported the total amount of gross receipts he took in from advertisers, resulting in an under-reporting of his tax liability, said the department.
Altavilla faces up to three years in prison for filing a false tax return. As part of the plea agreement, he will pay restitution to the IRS in the amount of $141,710, said the department.
As Joe notes,"it’s great to know that a blog can make enough money that you have to pay $141,710 in tax."
https://taxprof.typepad.com/taxprof_blog/2012/10/blogger-pleads-.html
Comments
Hate to be another wet blanket, but the liability probably includes a substantial amount of interest and penalties in addition to tax.
Posted by: DLN | Oct 12, 2012 9:27:35 AM
Having a tax-bill of $47K/yr means (to me, at least) a not uncomfortable level of income.
BTW, is Mr. Altavilla registered as a Dem, or GOP?
Posted by: AD-RtR/OS! | Oct 12, 2012 9:21:55 AM
OK, the obvious question. How much does this blog take in?
Posted by: Skip | Oct 12, 2012 6:45:32 AM
"As part of the plea agreement, he will pay restitution to the IRS in the amount of $141,710"
That is criminal tax talk, meaining some sort of compromise was reached on how much to pay to reach the plea bargain. The good stuff has not even begun. Exam is goin to have a field day as criminal tax numbers are conservative (extremely conservative) comparted to deficiency numbers (never mind penalties and interest). Trust me, criminal tax numbers often are a factor of 10 smaller than the potential deficiency $$$ let alone penalties & intrest on top. So let me bust out the electric blanket and say Mr. A is in for very unpleasant financial future.
Posted by: taxguy | Oct 12, 2012 6:54:32 PM