Twenty-six years ago, Richard Hatch outwitted, outplayed, and outlasted 15 competitors to become the first winner of the television show Survivor. Hatch walked away with a $1 million prize and, apparently, the firm belief that no one at the IRS watches TV.
A federal judge in Providence, Rhode Island, recently ordered Hatch to pay $3.3 million in back taxes, interest, and penalties. By my math, that’s more than three times what he won on the show, which has accumulated through the magic of compounding penalties.
To be fair, the prize money was just the beginning. Hatch also neglected to report $321,000 in radio appearance fees and $27,000 in rental income. But my personal favorite is the $11,500 in charitable donations that he had quietly redirected for personal use. In other words, it wasn’t just that he didn’t pay taxes on his winnings… he was thorough about it.
Hatch spent 51 months in federal prison following a 2006 tax evasion conviction, and then an additional nine months after failing to file his amended returns as ordered. He has represented himself throughout the recent proceedings, which he describes as a case of prosecutorial misconduct and judicial bias. “People think I’m crazy,” Hatch told the Boston Globe, “but I’m really, really hopeful.”
Tax professionals, of course, will immediately recognize this as the statement of a man who has never met a statute of limitations he couldn’t outlast, which, in its own strange way, is a very Survivor-like approach to tax compliance.
The government has also placed liens on two properties it claims Hatch transferred to his sister to avoid collection. Hatch denies the allegation.
The final tally is still climbing, as the judgment continues to accrue interest. At this rate, by the time the appellate court weighs in, Hatch may owe more than the entire prize pool of the first three seasons combined.
Final Tribal Council vote: IRS, unanimous.
