Richard Hatch, winner of the first season of “Survivor,” will have to pay taxes that have been disputed on his winnings since the show ended in 2000.
But his sister won’t have to give up two homes in the process.
A Rhode Island judge issued a final ruling that Hatch must pay taxes on the $1 million he earned on the show. Including taxes and interest, the tax debt grew to $3.3 million as Mr. Hatch continued to contest it in court.
Judge John J. McConnell Jr. cleared the way for the IRS to collect. But the ruling came after another judge said the IRS could not try to recover the funds by taxing the two homes in Hatch’s sister’s name. The government argued that because he had actually forwarded them to her, they should be treated fairly.
In a statement to Realtor.com®, Hatch said he is appealing the case to the Boston-based U.S. Court of Appeals for the First Circuit.
“I am confident that the appellate court will reach a just result by considering the entire record, including the evidence not fully addressed below,” Hatch said. “I have spent 25 years trying to do the right thing in complex situations, and I remain committed to resolving this issue fairly.”
How long has Hatch been fighting the IRS?
Hatch’s long-running dispute with the IRS began shortly after the series’ first season ended in 2000.
According to court records, the IRS accused Hatch of failing to pay taxes on $1 million in prize money he received, in addition to the car he won on the show. The IRS said he also failed to file taxes for some other jobs, including compensation for co-hosting a radio show.
Hatch was charged with felony tax evasion and fraud, but a jury found him guilty only of filing a false personal income tax return in 2006.
In a legal filing, he told the court he believed taxes on the winnings should be paid by CBS or the show’s production company. However, years of litigation in local courts resulted in several judgments against him.
The government resumed its attempt to collect taxes in 2022, seeking to place tax liens on two properties in Newport, Rhode Island, in the name of Hatch’s sister. The court argued that he should be able to collect on the two homes to pay off his tax debt because he transferred them to her.
However, another judge rejected the claim because the government had not proven that Mr. Hatch had a right to remain in the home. And his sister won the case, arguing that the 2003 and 2005 property transfers were time-barred.
McConnell said earlier this month that Hatch cannot challenge the government’s refusal to renew his passport in court because the Internal Revenue Service has determined he is a “significant taxpayer.”
And in his final order dated March 18, Mr. McConnell said there were no outstanding issues to litigate regarding the government’s efforts to reduce the tax assessment and issue a judgment.
CBS airs “Survivor 50,” which features several of the previous year’s winners, but Hatch is not a contestant.
