TaxPersonal TaxIRS forces space tripper to cancel adventure

IRS forces space tripper to cancel adventure

Winner of competition would have had to pay huge tax bill

Brian Emmett, 31, from California, has cancelled his
free
trip to outer space
after he worked out that he would have to report the
$138,000 (£70,000) ride as income and pay $25,000 (£12,700) in tax.

Emmett, 31 won the trip after correctly answering questions on
Java computer code.

Speaking after deciding not to do the trip, Emmett told
AP: ‘There was definitely a period of mourning.
I was totally crestfallen. Everything you had hoped for as a kid sort of
evaporates in front of you.’

The US Internal Revenue Service requires winnings from lotteries, TV shows
and other competitions to be reported as taxable income.

Emmett’s place will now be taken by another American. Two other winners, from
Asia and Europe, are still on board.

Further reading:

High-income earners under IRS radar

IRS audit of PwC to last till year-end

IRS reaches out to Hollywood

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