Tiger Woods, Mistresses and Tax Evasion Problems

It has been a rough year for Tiger Woods and it is nobodies fault but his own. Well, it might get worse. He might be looking at tax evasion charges to go with his mistresses and divorce problems.

The story is old news now. Tiger Woods is the dominant golfer of the modern period and perhaps ever. He has earned over a billion dollars in revenue and seemed to have it all with an incredibly beautiful Swedish wife and two lovely kids. Alas, he apparently did not. As we now know, he was a serial cheater with other women ranging from waitresses to porn stars. As you might imagine, his wife is none to pleased with this and appears to be on her way to becoming a former wife in the not to distant future.

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Tiger is a notoriously private person. For such a person, the fact that all of this dirt has come out has to be all the worse. There is some suggestion that he has tried to put a cap on it by paying his playthings money each month to keep quiet. There is nothing illegal per se about doing so. This is America, however, and you know what that means. Yes, there are tax implications!

If you give a person more than $13,000 in a year in the United States, you must file a gift tax return. That person, in turn, must claim the gift and pay taxes on it. Arguably, Tiger did just this with his alleged play things. I seriously doubt he filed a gift tax return and you can be the ladies probably did not claim the gifts on their tax returns. This could all pique the interest of the IRS who has shown a very human characteristic of being more interested in pursuing celebrities than the average Joe when it comes to cases like this.

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Is it likely he'll be hit with tax evasion charges? No, not really unless the IRS wants to pile on. Instead, he would probably be fined and forced to pay the back taxes with interest. As for his lady friends, the heat might be a bit heavier as they should be paying income tax on the revenue. Since the amounts he is paying are probably more than 25 percent of their total income, they could definitely face tax evasion charges. Oh, won't Tiger's wife/ex-wife be happy to read about that testimony in those trials!

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