IRS Doubts Nicolas Cage Gave Away $1.8M in Gifts
For Nicolas Cage, tax problems are nothing new.
On the heels of a 2009 standoff with the IRS, TMZ reports that the agency has filed a federal tax lien against the actor, claiming that he now owes the government taxes on $1.8 million worth of gifts.
The IRS wants its $624,934.64 and they want it now.
Cage is already making payments to the IRS on $14 million in back taxes that he failed to pay from 2002 to 2007. He blames his former business manager and accountant, Samuel Levin, for the oversights.
The just-filed Nicolas Cage tax lien--which he will also likely blame on Levin--alleges that the actor gave away $1.8 million in gifts between 2004 and 2009, but failed to pay the government its 35% cut.
If you're wondering about gift taxes, they refer to the amount of money a person owes the government when he transfers valuable property to another person.
As of 2011, the tax code permits an individual to give any number of people up to $13,000 per year without paying taxes on the transfer. Anything beyond $13,000 per person, and taxes must be paid on the excess amount.
The government also caps the amount of tax-free gifts a person may give over his lifetime. Until recently, individuals could only gift up $1 million without paying taxes. This is most likely why Cage owes taxes, given that he gifted $800,000 over the limit.
Given the excessive amount he already owes in taxes, chances are the Nicolas Cage tax lien isn't going to lead to a happy ending.
- Nicolas Cage targeted by IRS for alleged unpaid gift taxes (News Core)
- Estate and Gift Tax: An Overview (FindLaw)
- Gift and Federal Estate Taxes FAQ (FindLaw)
- Federal Estate and Gift Tax Laws (FindLaw)
- Nick Cage Spends National Treasure, Sues Ex-Biz Manager (FindLaw's Celebrity Justice)