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IRS Accuses Nicolas Cage Of Illegally Writing Off Personal Expenses

First Posted: 03/28/08 03:46 AM ET Updated: 05/25/11 01:25 PM ET

Nicolas Cage

The Internal Revenue Service says movie star Nicolas Cage used a company he owns to wrongly write off $3.3 million in personal expenses, including limos, meals, gifts, travel and his Gulfstream 1159A turbojet.

In just-filed U.S. Tax Court lawsuits, the 44-year-old actor--using his legal name of Nicolas Coppola--is disputing a personal IRS bill for $814,000 in taxes and penalties from 2002 to 2004, while his Saturn Productions of Los Angeles is fighting a demand for $988,000. The feds hit Cage both ways, denying Saturn a deduction for the disputed expenses while taxing Cage individually on the perks as salary and "constructive dividends."

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Not that Cage is the only celebrity to tussle with the IRS. Read about actor Wesley Snipe's brush-in with tax fraud here.

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Filed by Michelle Kung  |