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Posts with tag tax evasion

Dancing with the IRS: Dancing with Stars champ gets indicted

Filed under: Tax, Fraud

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.)


Are the airlines' extra fees cheating the U.S. out of tax dollars?

Filed under: Budgets, Debt, Tax, Transportation, Travel, Recession


The airlines might have found a tax loophole, and you're it. The travel consultancy firm T2 recently published a worrisome blog post that is gaining traction. The airlines' extra fees, it says, aren't just costing consumers more. They're also enabling the airlines to dodge tax to our government.

Until a few months ago, checking a bag was considered a service that came with the base fare that you paid when you bought your plane ticket. That was taxed at a rate of 7.5%. But now many airlines are charging up to $50 for each bag each way, and because it's not part of the base fare, that fee isn't subject to tax. T2 says that cash belongs to the airlines, free and clear.

So a carrier like United, T2 writer Timothy O'Neil-Dunne calculates, would be cheating Uncle Sam out of tax income of $7.5 million for each $100 million it makes on extra fees. Given that United recently surmised that it stood to make $700 million on its extra fees, that's a lot of cash that won't be going to our schools, our roads, our veterans programs, and our elaborate Wall Street bailouts. Not only do consumers get screwed by these extra fees, they get screwed out of the greater good of tax revenue.