The Tax Center

- Days left

Nicholas Cage is in hot water with the IRS

Actor Nicholas Cage is the latest celebrity to run afoul of the IRS.

According to Forbes magazine, Uncle Sam is accusing Cage of using a company he owns to wrongly write off $3.3 million in personal expenses including limos, meals, gifts, travel and his Gulfstream jet.

"In just-filed U.S. Tax Court lawsuits, the 44-year-old actor--using his legal name of Nicolas Coppola -- is disputing a personal IRS bill for $814,000 in taxes and penalties from 2002 to 2004, while his Saturn Productions of Los Angeles is fighting a demand for $988,000," the magazine said. "The feds hit Cage both ways, denying Saturn a deduction for the disputed expenses while taxing Cage individually on the perks as salary and `constructive dividends.'"

Cage's business manager, Samuel J. Levin, told Forbes the expenses were proper. The Tax Court may feel differently about the matter.

Maybe Cage should employ the legal team that got Wesley Snipes recently cleared of serious tax evasion charges. Snipes managed to convince a jury that he believed he wasn't required to pay income taxes because he didn't think he had to pay taxes. Nonetheless, Snipes owes the government $17 million in back taxes plus interest and penalties.

Cage is going to face a hefty legal bill, so he might want to unload some of his many properties such as a castle in U.K. and a multi-million dollar mansion in Rhode Island. I also have a suspicion that a "Face/Off 2" may be in the works.

--Freelance writer Jonathan Berr edits the blog Ketchup and Eggs.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

TurboTax Articles

What to Do After You've Filed an Income Tax Extension

Now that you've bought six extra months by filing an income tax extension, you might be wondering what you need to do between now and October 15, 2013 when your 2012 tax return is due. We've addressed some of the most common questions below. Brought to you by TurboTax.com

Can't File by the Deadline? Top 3 Reasons to File a Tax Extension

The Internal Revenue Service allows taxpayers to file for a six-month extension if they need more time to prepare their tax return. You can obtain a tax extension for any reason; the IRS grants them automatically as long as you complete the proper form on time. Check your state tax laws; some states accept IRS extensions while others require you to file a separate state extension form. Brought to you by TurboTax.com

Tax Return Filing and Payment Extensions for the Military

The Internal Revenue Service recognizes the fact that members of the United States armed forces are often deployed outside of the U.S. at tax time and gives many military and support personnel an extension on their tax deadlines. Brought to you by TurboTax.com

What Are Deductible Investment Interest Expenses?

In general, you can deduct interest paid on money you borrow to invest, although there are restrictions on how much you can deduct and which investments actually qualify you for the deduction. Brought to you by TurboTax.com

Add a Comment

*0 / 3000 Character Maximum