April 23, 2024      4:15 PM

Cruz could be liable for taxes on payments from his iHeartMedia podcast, experts say

Via reporter Ben Wermund at the Hearst DC Bureau:

The peculiar payment scheme behind U.S. Sen. Ted Cruz's popular podcast has raised ethical questions and drawn complaints about election law violations. Now tax experts say the deal involving a massive radio network that picked up the “Verdict with Ted Cruz” podcast in 2022 and a super PAC supporting the Texas Republican’s reelection effort could also raise red flags for the IRS.

While Cruz says he makes no money off the hosting gig, iHeartMedia has sent more than $630,000 in ad revenue from the podcast to the Truth and Courage PAC, which produces the show and says it owns it. The exact terms of the arrangement are unclear, and no parties involved have been willing to disclose them.

But tax experts say Cruz may still need to report income on his tax forms, even if he isn't pocketing any cash. That's because the law requires income to be taxed to the person who does the work. In this case, they say, that would be Cruz serving as the host of his podcast.

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