Nicolas Cage Pays $666,000+ to Settle with IRS
Actor Nicolas Cage, whose movie Bangkok Dangerous topped the weekend box office numbers, has settled his tax debts with the Internal Revenue Service for $666,000, plus interest.
Cage and his production company, Saturn Productions, agreed to pay the amount, which includes an accuracy-related penalty of $99,000, according to papers filed with the U.S. Tax Court, Forbes reported.
In February, Cage and his company objected to the IRS's contention that they improperly deducted $3.3 million in expenses for limousines, meals, gifts and a Gulfstream jet between 2002 and 2004. The IRS was originally seeking $1.8 million in back taxes, penalties and interest, but Cage's business manager said the expenses were customary in the entertainment industry and necessary for the actor's security needs.
In 2004, Cage reported his taxable income as $17 million, but the IRS claimed that it was closer to $18.5 million. Forbes estimated his income this year at $38 million.