Taxation & Estate Planning

What's a Million Bucks these Days?

By Darrin Mish

Does the name Richard Hatch ring a bell? It probably does. Richard Hatch gained international fame when he became the winner of the first 'Survivor' reality show series and won $1 million in prize money. But as it turned out, things went downhill from there. Hatch was convicted of tax evasion and sentenced to four years in a federal penitentiary.

Now, four years later, Hatch is freed but still under house arrest. He spends his days at his sister's house. What of all the money he won? It's all long gone and Hatch is broke. But he is unapologetic, claiming that he was victimized because he is openly homosexual. Yet on the other hand, being in prison had taught him humility, by his own admission when interviewed by TODAY's Matt Lauer.

Maintaining his innocence, Hatch stated that CBS, the television network that aired 'Survivor' in 2000, had promised to pay the taxes on the $1 million he won. He feels that the prosecutor in his case had some issues and conducted the prosecution unfairly and with malicious intent. According to Hatch, the prosecutor presented wrong information to the court such as that Hatch had not paid taxes in 2000 and that he was uncooperative. But Hatch contends that the IRS contradicted the prosecutor's charge and never billed him for taxes that year. Furthermore, he also says that the judge in his trial was discriminatory when he refused to allow his lawyers to question the jurors about their views on homosexuals. He goes on to say that he had been fully cooperative at all points of time and asserts that he will settle all his taxes once he receives a bill from the IRS. However, after four years in prison and having paid hefty lawyers' fees, Hatch admits that he is 'financially devastated'.

Over the years, Hatch had lodged several unsuccessful appeals but that has not deterred him from making one final appeal that he hopes will successfully prove that he was victimized for his sexuality as a homosexual.

Hatch's current sentence sees him confined to his sister's house and compelled to wear an ankle bracelet. He is allowed to go jogging daily but any activity beyond that outside the house including going to the bank or trips to town needs to be approved one week in advance by the Bureau of Prisons.

Needless to say, Hatch feels extremely bitter over these circumstances because he feels he is innocent.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for almost two decades. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

Full post as published by IRS Problem Solver Blog on September 29, 2009 (boomark / email).