I have a number of clients who receive income from outside of the United States. I’ve advised my clients that the US Tax Code is quite clear—income from all sources, legal or illegal, from within the United States or from outside the United States, is generally taxable. Anyone in a high profile occupation, such as an athlete or a contestant on a game show (eg Richard Hatch) should be aware of this.
Well, at least one surfer perhaps thought that the surfing lifestyle exempted him from paying taxes on winnings earned in Fiji, South Africa, Brazil and other foreign locales. Until the IRS found out. Sonny Garcia, perhaps the best ever Hawaiian surfer (he retired last year), now faces up to three years in jail and a fine of up to $100,000 after pleading guilty today to tax evasion. Garcia, born Vincent Sennan Garcia III, has won numerous surfing titles as this article notes.
The moral? Even if the surf’s up, dude, you gotta pay your taxes.