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Dancing with the stars

Top Ten Tax Stories of 2008: The World According to taxgirl

by Kelly on December 31, 2008 · 0 comments

in site info

It’s time for our annual review! Here are my picks for the top stories on taxgirl.com for the year:

10, Dancing With The Stars champ and race car driver Helio Castroneves is indicted on federal tax evasion charges. In a related story, my mother is stricken with grief and may never samba again (okay, I’m not sure that she sambaed before but I’m pretty sure that this will end any chance).

9, Prop 8 in California passes and prompts the promise of tax boycotts by the gay and lesbian community.

8, taxgirl endorsed Obama for President. I was both roundly cheered and jeered for my picks but stand behind my choice. One of my most controversial and commented posts of the year.

7, Tax evaders hit the slopes. A massive tax fraud investigation in Germany, the UK, the US and other countries points the finger at the tiny Alpine principality of Liechtenstein. I am elated to finally have a reason to prove that I can spell Liechtenstein.

6, After Congress says no, President Bush says yes and earmarks taxpayer dollars to save the Big 3 automakers. As a result, Fiat misses its chance to hit it big in the US.

5, Wesley Snipes is acquitted of tax fraud. Remarkably, the world did not end, though we will now be subjected to more of his movies.

4, Congress commits US taxpayers to a remarkable bailout package. Treasury Secretary Paulson is now more powerful than Oprah.

3, The “biggest tax fraud ever” tax trial finally reaches an end. Out of the original 19 defendants involved in the spectacle that was the KPMG trial, only 3 were eventually convicted.

2, Rebates, rebates and rebates. I probably posted the most - and received the most comments - about this year’s rebate checks. Taxpayers were confused about the amount of the check, set-offs, when checks might arrive and more. An overwhelming majority of Americans admitting to being as cynical about the chances of the checks stimulating the economy as they are about Paula Abdul “just being tired.”

1, taxgirl gets a nod by the editors of the American Bar Association in the ABA Journal Blawg 100 for 2008. In case you missed it before, voting by readers for the best of the blawgs runs through January 2 - just click to vote. And no, this tidbit never gets old (not for me, anyway)!

So those are my picks for the year. What did you like? What did you hate? And what did I miss?

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Castroneves Trial Date Set For Tax Evasion Charges

by Kelly on November 13, 2008 · 1 comment

in prosecutions, felonies and misdemeanors, sports & tax, taxes of the rich and (in)famous

Helio Castroneves will face the music - again - in March. Only, he won’t be able to tango his way out of this one quite so easily.

The Indy 500 race car driver and winner of the 5th season of Dancing with the Stars (along with fan favorite Julianne Hough) found out this week that his federal court trial will begin on March 2. Castroneves is facing one count of tax conspiracy and six counts of tax evasion with respect to income that he allegedly hid in offshore accounts in order to escape taxation.

The two-time Indy 500 winner entered a not guilty plea last month. If convicted, Castroneves faces stiff penalties and jail time.

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Castroneves Will Race in Australia: Judge Changes His Mind

by Kelly on October 12, 2008 · 0 comments

in prosecutions, felonies and misdemeanors, sports & tax, taxes of the rich and (in)famous

Peak Antifreeze & Motor Oil Indy 300

After a federal judge initially barred Helio Castroneves from leaving the country as part of the race car driver’s bail conditions, it seems he has changed his mind. Despite arguments by the prosecutors that Castroneves had both motive and assets to flee the country, U.S. Magistrate Judge William Turnoff said that he believed “the dumbest thing Mr. Castroneves could do” would be to jump his bail while he awaited trial on tax evasion and conspiracy charges.

Judge Turnoff remarked to Castroneves, “You have much to lose by not complying with conditions of release.” Castroneves reportedly nodded vigorously in agreement. The judge also took a jab at Castroneves’ appearance on Dancing With the Stars, adding that he would “tango with the U.S. marshals” if he was a no show in court.

While Castroneves is a native of Brazil, he left the country in 1996. His attorney, David Garvin, argued that there was no chance that Castroneves would flee, given that the majority of his racing contracts, appearances and promotional opportunities was tied to the United States. Castroneves is currently ranked second on the Indy circuit, just a few points behind New Zealand’s Scott Dixon.

Garvin also indicated that Castroneves would Garvin pay the Internal Revenue Service about $5 million in federal taxes after his “deferred royalty contract” expires at the end of the year; prosecutors allege that Castroneves has always had access to that account.

Prosecutors also argued that Castroneves has millions of additional dollars around the world in addition to the “deferred royalty” account, including assets in Brazil. Those assets, as well as a potential jail sentence, were sufficient reasons for Castroneves to be considered a flight risk, according to the prosecution. The judge did not buy that argument. He has allowed prosecutors the right to appeal the bail modifications but so far, no appeal is planned.

In response to the allegations, Castroneves’ racing team posted the following message on his email in Portugese:

Helio gostaria de agradecer a todos que têm ligado e escrito com seu apoio. Esse carinho e apoio significa muito pra ele.

Desde os seus 12 anos de idade ele é um piloto de corridas, e vai enfrentar esse caso como se fosse mais uma difícil corrida.

Helio não entende das leis de impostos deos EUA, por isso tem ao seu lado advogados e contadores experientes.

Ele tem fé que vencerá esse caso, pois sabe que não é culpado.

Obrigado,
Castroneves Racing RP

And in English:

Helio wants to thank everyone for their support. The phone calls and emails mean a lot to him.

Since he was 12 years old he has been a race car driver and he will face this case as a difficult race.

Helio doesn’t know much about the tax laws in the United States. For that reason, he has experienced lawyers and accountants at his side.

He has faith that he will win this case, since he knows he is not guilty.

Thank you,
Castroneves Racing PR

There are many comments at Castroneves’ site, expressing dismay over the arrest and his subsequent treatment at trial (specifically referencing the leg shackles). Do you think he was treated fairly? Do you think he’ll flee? Was his bail fair?

If it were up to my Mom, he’d be released on the strength of his samba alone…

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Castroneves Pleads Not Guilty in Federal Tax Evasion Case

by Kelly on October 3, 2008 · 1 comment

in prosecutions, felonies and misdemeanors, sports & tax, taxes of the rich and (in)famous

Detroit Indy Grand Prix

You have to wonder what Helio Castroneves did to garner the wrath of the IRS. You know, except for the tax evasion part - perhaps they were Melanie B/Scary Spice fans?

The two-time Indianapolis 500 winner and 2007 “Dancing With The Stars” champion pleaded not guilty today to tax evasion charges. He is accused of using offshore accounts to evade federal income taxes on more than $5 million in income.

Okay, so far, I get it…

But the fact that he appeared in court in handcuffs and leg chains floors me. Even more odd, his bail was set at $10 million bail. There must be something that I’m missing.

He’s accused of not reporting far less than Wesley Snipes was accused of and yet Snipes’ bail was a mere $1.5 million. And Joe Francis, who had a prior criminal history, is accused of reporting more than $20 million in phony expenses, and was granted bail of $1.5 million.

But Castroneves’ bail was set at almost ten times that. Ouch. His lawyers have accused prosecutors as strong arming the race car driver to make an example of him. I have to say, it kind of feels like it. I have been reporting tax evasion cases for a few years now - and this one feels like one of the smaller deals. I’m not saying that his behavior, if true, is okay. I just question leg chains for a non-violent offender with no prior criminal record - and bail that is significantly higher than that for others accused of similar crimes.

And he’s apparently taking it quite hard. According to reports, Castroneves was “visibly shaken and frowning” during his court appearance.

While he awaits his trial, Castroneves is allowed to travel for work in the US but not abroad. This means that he will likely be racing in Atlanta later this year, as planned, but will not race in Australia.

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Dancing with the IRS

by Kelly on October 2, 2008 · 7 comments

in prosecutions, felonies and misdemeanors, taxes of the rich and (in)famous

ABC Supply/ AJ Foyt Indy 225 Practice

Brace yourselves. And Mom, leave the room…

Race car driver, former “Dancing With the Stars” champion and all around hottie (yes, I can say that on a tax blog) Helio Castroneves is facing federal tax charges in Miami.

The 33 year old racing and dancing phenom was indicted today by a grand jury on charges of tax evasion. He is charged with using offshore accounts to hide millions of dollars in income from the IRS. Specifically, he is charged with concealing income from Penske Racing Inc. and the Brazilian firm Coimex International S.A. The charges are conspiracy and six counts of tax evasion for the years 1999 to 2004. Also included in the indictment were Castroneves’ sister (Katiucia Castroneves), business manager and attorney.

Castroneves is a native of Sao Paulo, Brazil but currently lives in a $2.3 million home in Florida. He has won the Indianapolis 500 twice - the youngest driver to do so - and is currently second in the IndyCar Series points standings.

But really, you and I best know him as the race car driver who took the 2007 “Dancing With the Stars” competition by storm, along with the adorable Julianne Hough. He danced a mean samba. We’ll see what his next act will be…

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