Also known as "creative accounting," Hollywood accountants set up separate corporations for movies with the intent that these fake production companies take on heavy losses. The studio pretends to have spent that money when in actuality it just hands it back to itself. The studio can rake in all that cash while alienating anyone who signed a contract requesting to make net profits on the film. These details are often in small print and these actors, producers, and investors often assume the studio is looking out for their best interest with these contracts. Actress Linda Carter on "The Late Show with Joan Rivers" commented "Don't ever settle for net profits. It's called 'creative accounting'. Want to know something even crazier? The IRS took Hollywood to court over creative accounting and lost. There's a protected class in America. And you ain't in it. Tax evasion wasn't the reason behind Hollywood accounting. The studios just wanted to maximize their profits while fuc.... over the film crew. Let's be thankful that most everyday corporations don't have the money, or power to do what Hollywood does to its film crews. The IRS admits that it doesn't have the manpoqer to audit high-profile companies or billionaires. ISAIAH McCALL
