Tuesday, January 11, 2011

Survivor's Richard Hatch May Have Lost Immunity Challenge In Ongoing Tax Troubles

Survivor's Richard Hatch was something of a reality star before he was arrested and convicted on tax evasion on income won during the show's inaugural season. At the time, the IRS claimed he owed $400,000. Hatch spent more than three years in prison and was released in 2009.

It appears that his release will be a short lived situation. One of the conditions for his release was the filing of new proper tax returns, but he never made the filings.
Hatch, who was convicted in 2006 of failing to pay taxes on the $1 million prize he won on the debut season of the CBS reality series in 2000, spent more than three years in federal prison and then was placed on three years of supervised release. He was released in 2009 and has been living in Newport, R.I.

Federal authorities accuse him of violating the conditions of his release by failing to file amended tax returns for the years 2000 and 2001.

U.S. District Judge William Smith said he could put Hatch back behind bars for the remaining two years of his supervised release if he finds that Hatch willfully violated the terms of his freedom, as prosecutors allege. The judge ordered prosecutors and Hatch's attorney to file new paperwork and said Hatch would be sentenced later.

Hatch has appealed a finding of the Internal Revenue Service that he owes about $1.7 million in taxes for 2000 and 2001, including interest and penalties.

Officials say that Hatch owes more than $1.7 million in taxes, penalties, and interest and that he needs to file amended tax returns, even though tax experts say that he can't file the amended returns because the matter is pending before tax court.

Hatch should expect to spend more time in prison since he couldn't be bothered to make the proper filing.

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