- Days left
A dance with the Internal Revenue Service is one that I never want to do, and I suspect everyone reading this feels the same. Unfortunately for Dancing With the Stars champion (and Indy 500 champ, but I'm focusing on the important stuff) Helio Castroneves, the IRS is after him and he has been indicted on multiple count of tax evasion.

Castroneves makes his home in South Florida, and the indictment happened in Miami on Thursday. The IRS says he failed to report $5.5 million in income between 1999 and 2002. His sister Kati is his manager, and she was indicted too, along with his lawyer, Alan Miller.

The charges against Castroneves include one fraud charge and six charges of tax evasion. Each of those counts could get him up to five years in prison, for a total of 35 years. (But maybe he'll get lucky like Wesley Snipes and find himself acquitted of some of these charges.)



The IRS is alleging that Castroneves used a several companies to move money around and ultimately avoid reporting his earnings as taxable income. Included in this plan was a company called Seven Promotions, a Swiss bank account, a licensing company in The Netherlands, and a Brazilian sponsor.

Penske Racing allegedly paid Castroneves $1 million a year for three years, and paid a company called Seven Promotions an additional $5 million. Penske was then asked to stop paying Seven and send the money instead to Fintage Licensing. A "deferred royalty plan" was used to avoid reporting the income as taxable. It is also alleged that Castroneves and his sister lied to the IRS about Seven Promotions in a civil case from 2004.

I really feel no pity for Castroneves or anyone else invovled in this situation. The tax code is complex and has plenty of legitimate loopholes that taxpayers can use to reduce their taxable income. Anything beyond that is just plain fraud, and amounts to people not paying their fair share. I don't like paying income taxes either, but I still report my income honestly and pay what I owe. It's time that everyone else do the same, celebrity or not.



Increase your money and finance knowledge from home

Getting out of debt

Everyone hates debt. Get out of it.

View Course »

Economics 101

Intro to economics. But fun.

View Course »

TurboTax Articles

What is IRS Form 8824: Like-Kind Exchange

Ordinarily, when you sell something for more than what you paid to get it, you have a capital gain; when you sell it for less than what you paid, you have a capital loss. Both can affect your taxes. But if you immediately buy a similar property to replace the one you sold, the tax code calls that a "like-kind exchange," and it lets you delay some or all of the tax effects. The Internal Revenue Service (IRS) uses Form 8824 for like-kind exchanges.

What are ABLE Accounts? Tax Benefits Explained

Achieving a Better Life Experience (ABLE) accounts allow the families of disabled young people to set aside money for their care in a way that earns special tax benefits. ABLE accounts work much like the so-called 529 accounts that families can use to save money for education; in fact, an ABLE account is really a special kind of 529.

What is IRS Form 8829: Expenses for Business Use of Your Home

One of the many benefits of working at home is that you can deduct legitimate expenses from your taxes. The downside is that since home office tax deductions are so easily abused, the Internal Revenue Service (IRS) tends to scrutinize them more closely than other parts of your tax return. However, if you are able to substantiate your home office deductions, you shouldn't be afraid to claim them. IRS Form 8829 helps you determine what you can and cannot claim.

What is IRS Form 8859: Carryforward of D.C. First-Time Homebuyer Credit

Form 8859 is a tax form that will never be used by the majority of taxpayers. However, if you live in the District of Columbia (D.C.), it could be the key to saving thousands of dollars on your taxes. While many first-time home purchasers in D.C. are entitled to a federal tax credit, Form 8859 calculates the amount of carry-forward credit you can use in future years, not the amount of your initial tax credit.

What is IRS Form 8379: Injured Spouse Allocation

The Internal Revenue Service (IRS) has the power to seize income tax refunds when a taxpayer owes certain debts, such as unpaid taxes or overdue child support. Sometimes, a married couple's joint tax refund will be seized because of a debt for which only one spouse is responsible. When that happens, the other spouse is said to be "injured" and can file Form 8379 to get at least some of the refund.

Add a Comment

*0 / 3000 Character Maximum