- 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

How to Avoid Financial Scams

Avoid getting duped by financial scams.

View Course »

Intro to Retirement

Get started early planning for your long term future.

View Course »

TurboTax Articles

Are You Exempt From Health Care Coverage?

The Affordable Care Act, or Obamacare, is an individual mandate that requires all eligible Americans to have some form of basic health coverage by 2014. Those without insurance will receive a penalty when they file their tax returns ? that is, unless they have an exemption. TurboTax's Exemption Check can help you find out whether or not you qualify for an exemption.

Essential Tax Forms for the Affordable Care Act

The Affordable Care Act (ACA), also referred to as Obamacare, affects how millions of Americans will prepare their taxes in the new year. The law now includes penalties for all who haven?t obtained health insurance -- and those penalties are expected to be paid at tax time. The ACA also provides tax credits to help people pay for insurance, and you can claim those credits when you file your taxes. The Internal Revenue Service (IRS) has introduced a number of tax forms to accommodate the ACA.

Mortgage Refinance Tax Deductions

When refinancing a mortgage to get a lower interest rate or obtain more favorable loan terms, you're really just taking out a new loan and using the money to pay off your existing home loan. In general, the same tax deductions are available when you're refinancing a mortgage as when you're taking out a mortgage to buy a home.

How to Determine if You Have Minimum Essential Coverage (MEC)

The Affordable Care Act, also known as Obamacare, requires most Americans to have health insurance that meets a government standard known as "minimum essential coverage," or MEC. Whether your insurance qualifies as MEC depends not on the plan itself, but on how you obtained your coverage.

Rental Property Deductions You Can Take at Tax Time

Rental property often offers larger deductions and tax benefits than most investments. Many of these are overlooked by landlords at tax time. This can make a difference in making a profit or losing money on your real estate venture. If you own a rental property, the IRS allows you to deduct expenses you pay for the upkeep and maintenance of the property, conserving and managing the property, and other expenses deemed necessary and associated with property rental.

Add a Comment

*0 / 3000 Character Maximum