Survivor’s First Winner Owes $3.3 Million in Winnings, Court Rules

Richard Hatch’s Ongoing Tax Battle

Richard Hatch, the winner of the first season of “Survivor,” has been involved in a long-standing legal battle with the Internal Revenue Service (IRS) over taxes on his $1 million prize money. This dispute has continued for over two decades, with the latest developments showing that Hatch must now pay taxes on his winnings, which have grown significantly due to interest.

A Rhode Island judge recently issued a final judgment requiring Hatch to pay taxes on the $1 million he won. When considering taxes and interest, this debt has increased to $3.3 million. The judge, John J. McConnell Jr., allowed the IRS to proceed with collecting the debt. However, this decision came after another judge ruled that the IRS could not attempt to collect the money by levying two houses under the name of Hatch’s sister. The government had argued that these properties were transferred to her and should be considered as assets to settle the tax debt.

In a statement to Jendela Magazine®, Hatch expressed his intention to appeal to the Boston-based U.S. Court of Appeals for the 1st Circuit. He said:

“I am confident that the appellate court’s review of the full record, including evidence that was not adequately addressed below, will result in a just outcome. I have spent 25 years trying to do the right thing in a complicated situation, and I remain committed to resolving this matter fairly.”

The Origins of the Dispute

Hatch’s dispute with the IRS began shortly after the first season of “Survivor” concluded in 2000. According to court records, the IRS accused him of not paying taxes on the $1 million in prize money he received, along with a car won on the show. Additionally, the IRS claimed he did not report taxes on other work, such as compensation for co-hosting a radio show.

Hatch faced felony tax evasion charges and fraud, but a jury found him guilty only of filing false personal income tax returns in 2006. In legal filings, he argued that the taxes on the winnings should be paid by either CBS or the show’s production company. However, years of litigation in the district court have resulted in several rulings against him.

Recent Developments

The government renewed its efforts to collect the tax in 2022, attempting to place tax liens on two Newport, RI, properties under the name of Hatch’s sister. They argued that he had transferred these properties to her, making them eligible for levy to pay down his tax debt. However, a different judge denied this request because the government failed to prove that Hatch had any remaining interest in the houses. His sister also prevailed on an argument that the 2003 and 2005 property transfers were time-barred.

Judge McConnell also ruled that Hatch could not challenge the government’s refusal to renew his passport in court, as the IRS labeled him a “seriously delinquent taxpayer.” In a final order dated March 18, McConnell stated there were no outstanding issues to litigate from the government’s effort to reduce the tax assessments to judgment.

Current Status and Future Outlook

Despite the ongoing legal challenges, Hatch remains determined to resolve the matter fairly. The case highlights the complexities of tax law and the long-term consequences of disputes with the IRS. As the legal process continues, it remains to be seen how the appeals court will rule on the case.

CBS is currently airing “Survivor 50,” which features several winners from previous years, though Hatch is not a contestant in this season.