Just when you think you can finally put Richard Hatch out of mind, he fumbles back into the spotlight. Mr. Hatch is, of course, the winner of the very first Survivor; he thought that the $1 million he won on the reality show wasn’t taxable. He served 51 months at ClubFed but still believes that to be the case.
Apparently, that wasn’t long enough to realize a basic truth about taxes: All income is taxable unless Congress exempts it; nothing is deductible unless Congress allows it. Winning money on reality television is taxable.
Well, Mr. Hatch never bothered to amend his tax returns (as he was supposed to). In January, he was found guilty of violating terms of his supervised release. On Friday, US District Court Judge William Smith sentenced Hatch to nine months at ClubFed with that sentence beginning on Monday. Judge Smith also ordered Hatch to have 26 months of supervised release (following his sentence), with 25% of his earnings during that time being garnished to the IRS. Adding in the tax, penalties, and interest, Mr. Hatch owes about $2 million to the IRS.
Judge Smith’s remarks hopefully will finally sink in to Mr. Hatch. “You can continue to proclaim your innocence…You don’t have the option of engaging in this type of game or negotiation with the court. It needs to be a severe punishment. That’s the only thing that will deter you in the future.”
And to think I’d have so little to write about if Mr. Hatch had just paid his $300,000 in tax in the first place.
News Stories: Providence News, The Hollywood Reporter, and ABC