April 15th for Juan Pablo Montoya - Time to pay

dpkimmel2001

dpkimmel2001

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IRS Says Race Car Driver Juan Pablo Montoya Used Sham To Wrongly Deduct Millions

The Internal Revenue Service is demanding $2.7 million in extra taxes and penalties from race car driver Juan Pablo Montoya, who, it asserts, had $9.5 million in taxable income in 2007 and 2008, nearly four times the $2.4 million he and his wife reported on their joint tax returns for the two years. In a previously unreported lawsuit filed in U.S. Tax Court, Montoya concedes that in those two years he had nearly $800,000 more in gross receipts, interest and partnership income than originally reported, but challenges the IRS’ other, even bigger dollar adjustments.

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When it rains, it pours. His income next year will probably be half what it is now.

I wouldn't be surprised if Juan decided to move back home. ;)
 
whats even worse is he has admitted his income should have been 800k more than it was. lieing about income is a big no no which appears to be whats happened. thats the kind of thing that gets you put in jail.
 
They got a hold of me once..nothing like Juan's, but their interest is high rate credit card, and they are slow as hell to let you settle..while their compound interest keeps clicking on.
 
Montoya has a clever accountant and lawyers. I don't think the IRS will be getting their 2.7 mil
 
ToyYoda said:
I won't be visiting the accounting firm of Montoya & Castroneves anytime soon.
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The kind of tactics they're using don't really work for Americans, unless you renounce your citizenship. Americans are expected to pay income tax regardless of where they live, something only this country does (our rich people and corporations get out of taxes other ways - charitable donations, municipal bonds). Helio, Snipe Boy and most F1 drivers set up shell corporations in countries that don't tax corporations(Panama, Bahamas, Seychelles), then live in places that have no/low taxes on individuals (Florida, Monaco). I think it's kind of a brilliant strategy. I'd do it in a second if I was a non-American race car driver.
 
Poor Juan just cant catch a break. Hard to believe the guy won the Grand prix of Monaco and the Indy 500.
 
Hmmm, well, Helio claims that jilted former manager Emerson Fittipaldi is the one who tipped off the IRS about his tax shelters in his tax evasion case. I wonder if somebody tipped off the IRS about JPM. Is Chip a big enough jerk to do that? He would know that his team is paying Juan via this company in the Bahamas. Totally speculative on my part.
 
Man why in the H3LL can't rich people just pay their d@mn taxes, they are the greediest people on earth, guess that's how a lot of them go to be rich...
 
FenderBumper said:
I wonder if it's legal to have freeze a bunch of fertile eggs from your wife and claim 80,623 dependents?
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Damn sure worth a try :)
Just in case it doesnt work out I have heard that federal prisons are much nicer places then state prisons. You might even get lucky enough to get a room with a television :D
 
FenderBumper said:
I hope his accountant wasn't counting the laps in those races.
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Juan has probably made some real money in his career although they didnt pay so good back when he drove open wheel. Im sure his years in Nascar have enabled him to buy lots of model planes though.
 
KevinWI said:
Hmmm, well, Helio claims that jilted former manager Emerson Fittipaldi is the one who tipped off the IRS about his tax shelters in his tax evasion case. I wonder if somebody tipped off the IRS about JPM. Is Chip a big enough jerk to do that? He would know that his team is paying Juan via this company in the Bahamas. Totally speculative on my part.
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you could not be more accurate with your statement. typically these deals are because someone was pissed off an went to the IRS, same thing happened to gene haas with his get back at the government plan because he lost a patent suit. lets just say, well if I was him I would leave the IRS alone after the jail time and fine they hit him for which was many many times what he hoped to recoup by ripping off the IRS
 
I gave my accountant one rule to go by when I hired her, do it strictly legal or I'll find somebody else, that was many years ago and I've never had a problem.
 
Restrictor Plate King! said:
Man why in the H3LL can't rich people just pay their d@mn taxes, they are the greediest people on earth, guess that's how a lot of them go to be rich...
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True dat. It seems many rich people don't pay their taxes, not just Montoya and Castroneves, but also people like Montell Jordan, Nicholas Cage, Richard Hatch and others. Whereas 99% of everyday pay up. What gives?
 
Captain Coyfish said:
True dat. It seems many rich people don't pay their taxes, not just Montoya and Castroneves, but also people like Montell Jordan, Nicholas Cage, Richard Hatch and others. Whereas 99% of everyday pay up. What gives?
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Difference is what they have to pay.

Their taxes are in the millions while ours are in the 2-3ks.
 
KevinWI said:
Hmmm, well, Helio claims that jilted former manager Emerson Fittipaldi is the one who tipped off the IRS about his tax shelters in his tax evasion case. I wonder if somebody tipped off the IRS about JPM. Is Chip a big enough jerk to do that? He would know that his team is paying Juan via this company in the Bahamas. Totally speculative on my part.
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I cannot see Chip doing that, there is nothing to gain, and it would generate future distrust with future drivers.
 
reck said:
Difference is what they have to pay.

Their taxes are in the millions while ours are in the 2-3ks.
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Yeah but still, let's say i'm a millionare & let's say last year I made 7.5 million. Now Montoya by now I would think doe's not have a mortgage, nor should he have a car payment. Also, he has no ex-wife or kids from some other woman other than his wife. What all this means is that his biggest expenses other than daily rich folks life should only be comprised of his son's impending racing career. Now I have never been even the slightest bit close to being financially well off but somehow I manage to live & pay my taxes every year. I make sacrifces & try not to spend beyond my means & net worth. Now d@mnit if I can do it, then anyone should be able to. The whole point of being rich is being able to pay for sh!t up front & getting the title or deed right away and to say this is mine. What happens though is that alot of these stingy people with money, take complementary items given to them by various companies with the promise that things will be paid for later on. Some people will start off with 7.5 mill & then go out & buy a 4mill house, 1mill worth of jewelry, & 2mill worth of Ferrari's & Lambo's. Now your broke & you have yet to pay taxes on the 7.5mill you started out with. Ask yourself do you really need all of that? How much do you need to live? Why not take that 7.5mill & buy a half million dollar home, a couple vehicles that are $80k or less & just let the rest of that sit in the bank? Look at Allen Iverson, the posterboy for financial futility. The guy made all those millions & now he's broke, he's set to get access to a $30million trust that Reebok setup for him years ago when he turns 55 years old but with the IRS waiting at the door of the bank right after he cashes the check, might as well say his life of priviledge is over. I know what i'd do if I had a few million, first off i'd pay my taxes...
 
Restrictor Plate King! said:
Yeah but still, let's say i'm a millionare & let's say last year I made 7.5 million. Now Montoya by now I would think doe's not have a mortgage, nor should he have a car payment. Also, he has no ex-wife or kids from some other woman other than his wife. What all this means is that his biggest expenses other than daily rich folks life should only be comprised of his son's impending racing career. Now I have never been even the slightest bit close to being financially well off but somehow I manage to live & pay my taxes every year. I make sacrifces & try not to spend beyond my means & net worth. Now d@mnit if I can do it, then anyone should be able to. The whole point of being rich is being able to pay for sh!t up front & getting the title or deed right away and to say this is mine. What happens though is that alot of these stingy people with money, take complementary items given to them by various companies with the promise that things will be paid for later on. Some people will start off with 7.5 mill & then go out & buy a 4mill house, 1mill worth of jewelry, & 2mill worth of Ferrari's & Lambo's. Now your broke & you have yet to pay taxes on the 7.5mill you started out with. Ask yourself do you really need all of that? How much do you need to live? Why not take that 7.5mill & buy a half million dollar home, a couple vehicles that are $80k or less & just let the rest of that sit in the bank? Look at Allen Iverson, the posterboy for financial futility. The guy made all those millions & now he's broke, he's set to get access to a $30million trust that Reebok setup for him years ago when he turns 55 years old but with the IRS waiting at the door of the bank right after he cashes the check, might as well say his life of priviledge is over. I know what i'd do if I had a few million, first off i'd pay my taxes...
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You are pretty much right on RPK.

Happens all the time to athletes, specially NFL and NBA players.

It is truely a shame what happened to Iverson. What's more, his ex-wife is also hounding him for money he doesn't have. In the end though, he has no one to blame but himself.

Reebok did him a solid there.
 
Finally got to meet Juan today, he sure didnt look to worried. I told him I was honored to meet a driver that won the Grand Prix of Monaco. Thats all I had to say :D
 
reck said:
Difference is what they have to pay.

Their taxes are in the millions while ours are in the 2-3ks.
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Difference is, they have the money. It's pretty common for average Americans to owe more in taxes than they can possibly pay. $2.7 million is nothing to someone like Juan Pablo Montoya whereas a few thousand dollars - that's an entire year of food for some people. And it's lower-income people that just had their taxes raised, earlier this year, for the second time in three years.

Not to mention - someone with money can get themselves out of IRS messes. Someone who doesn't have a lot of money has no recourse and most likely got themselves in a mess with the IRS because they aren't wealthy.

I have no sympathy for rich people who don't pay taxes - especially when they're the ones screaming about "only rich people pay taxes".
 
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