Nicolas Cage has agreed to pay $666,000 to settle charges by the IRS that he improperly deducted personal expenses, including limos, meals, gifts and trips on his Gulfstream jet.
Originally Cage contested the IRS’ claims, but he seems to have relented.
Forbes: Nicolas Cage, who plays a jaded hit man in his new movie opening Friday, Bangkok Dangerous, has agreed to pay substantial back taxes and penalties to the U.S. Internal Revenue Service, which said that for years he improperly deducted personal expenses.
In papers filed in U.S. Tax Court, Cage and his Los Angeles-headquartered Saturn Productions said they would pay $666,000, plus unspecified interest. Nearly one-fifth of the base amount, or $99,000, is an “accuracy-related” penalty.
Forbes was the first to report in February that Cage, under his legal name of Nicolas Coppola, and his company filed parallel U.S. Tax Court cases contesting IRS determinations that he wrongly wrote off $3.3 million in personal expenses from 2002 to 2004, including limos, meals, gifts, travel and his Gulfstream 1159A turbojet. The IRS was seeking a total of $1.8 million in back taxes and penalties, plus interest. However, because of double counting, the amount actually at issue, exclusive of interest, was likely closer to $1 million.
At the time, Cage’s business manager, Samuel J. Levin, defended the deductions as “customary in the entertainment industry” and based in part on the actor’s “security needs.”
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