Nobody escapes U.S. taxes - even astronauts

Astronauts still have to file their taxes on April 15 every year -- even if they're floating in outer space.

HONG KONG (CNNMoney)

Yes, that's right. Astronauts are on the hook to file taxes by April 15, even if they're orbiting hundreds of miles above Earth on a long-term mission.

The IRS -- the much-feared enforcer of the U.S. tax code -- makes no exceptions. Experts say astronauts don't get special treatment, no matter how far away they are from the planet.

NASA astronaut Leroy Chiao -- commander of the tenth expedition to the International Space Station -- was in orbit when tax day rolled around in 2005. Chiao had no choice but to manage his taxes from space.

But how exactly did that happen?

"Get someone to help you out on the ground," Chiao said. The mission commander's sister is an accountant, and she was able to file papers on his behalf to extend his tax return deadline.

"He certainly had a good, valid reason [for the extension]," said his sister, Judy Chiao Smith.

Related: This job has the world's worst tax return

After eight months living on the International Space Station, Chiao returned to earth on April 24, 2005 -- just nine days after tax day -- and got busy working on his tax return.

Since astronauts are routinely gone for months, "you do have to anticipate everything," Chiao said. The astronaut ticked off a laundry list of events to prepare for: voting, birthdays, anniversaries and even Christmas.

Taxes are no exception. Astronauts need to "make sure their mail is getting redirected, so the [tax forms] and other information from the government actually goes somewhere, and isn't held at the post office," Chiao Smith said. "If you're up there in space, you can't get ahold of the data."

Another strategy is for astronauts to file taxes early, said NASA spokeswoman Nicole Cloutier. Some astronauts "file an extension pre-flight, or their spouse handles filing the taxes," she said.

Taxes have long stressed out astronauts -- Jack Swigert, a last-minute addition to the Apollo 13 crew, even radioed Houston's mission control center for tax help while the mission was underway.

"Hey, listen, it ain't too funny; things kind of happened real fast down there, and I do need an extension," Swigert said, according to NASA transcripts. "I didn't get mine filed, and this is serious."

With laughter in the background, mission control promised to help Swigert.

For accountants that work on astronaut taxes, the physical location of their clients raises some interesting -- or perhaps bizarre -- questions.

Americans living abroad can claim an exemption on income earned in a foreign country, for example. Could an astronaut also claim the exemption?

Related: For $90, you can bury stuff on the moon

Experts say astronauts working in outer space probably wouldn't qualify. That's because government workers aren't typically eligible, and the IRS doesn't consider international airspace or waters to be a foreign country, said Vincenzo Villamena, an accountant who specializes in expat taxes.

"Even if the astronaut was stationed on board the International Space Station, it would be considered an offshore shop or offshore installation [subject to U.S. taxation]," he said.

But does the IRS definition of "international airspace" extend to altitudes beyond the Earth's atmosphere? The tax code is silent on the issue, and the IRS did not respond to request for comment.

"It'd be an interesting argument to make, because technically, you are out of the country," Chiao Smith said.

Read next: Why NASA is turning to Elon Musk

First Published: December 7, 2014: 9:09 PM ET

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Rolling Stone apologizes for rape article: What now?

Rolling Stone has apologized for its "A Rape on Campus" focusing on a fraternity at the University of Virginia -- and spent the weekend investigating it.

NEW YORK (CNNMoney)

The magazine's editors spent the weekend belatedly fact-checking the article rand reviewing what went wrong.

"We are taking these matters very seriously," said an editor at the magazine who insisted on anonymity.

Some observers are predicting departures from Rolling Stone as a result. Representatives of the magazine declined to comment on Sunday. Jann Wenner, the founder and owner of Rolling Stone, did not respond to requests for comment.

But the editor who spoke anonymously said the magazine would have more to say in the coming days.

November 19 article stuns readers

The crisis meetings at Rolling Stone were prompted by the unraveling of the 9,000-word article, which was written by regular contributor Sabrina Rubin Erdely.

The article described how "rapes are kept quiet" by students and administrators at the University of Virginia. It focused on the story of one freshman student, known as Jackie, who said she was brutally gang-raped by seven men for several hours at a frat party in 2012.

Erdely's article was published on November 19 and immediately stunned readers, grabbed media attention and prompted the president of UVA to suspend all fraternity activities on campus and promise a full investigation.

Less than a week later, critics began to ask questions about some of the details in Jackie's account and about Rolling Stone's decision not to contact the seven alleged attackers.

Erdely defended her process, telling CNN and SiriusXM host Michael Smerconish in a radio interview that she put Jackie's story "through the ringer" and "talked to all her friends."

"Her story is very consistent," Erdely said. "She has clearly been through a tremendous trauma. And I don't doubt that something happened to her that night."

But what Jackie alleged, and what Erdely described, was something very specific: a horrific gang rape.

Many people were -- and many still are -- inclined to give Erdely the benefit of the doubt, given the incredibly sensitive nature of the subject and the damage that can be inflicted through undue skepticism of rape victims' stories.

The Columbia Journalism Review noted on December 2 that "Jackie is far from the only source in the Rolling Stone story, which is rich in reported facts, along with quotes by experts and survivors of rape. Certainly, the main message has had a huge impact so far. But the questions that were not asked now threaten to hijack that narrative."

Chief among those questions were and are: What do the alleged attackers say?

Washington Post investigates and Rolling Stone apologizes

On Friday, the Washington Post reported that it reached one of the seven men, who said he had "never met Jackie in person and never took her out on a date." He also told the Post that was not a member of Phi Kappa Psi, the fraternity in question.

Furthermore, the frat "said there was no event at the house the night the attack was alleged to have happened."

Around the same time the Post story came out, Rolling Stone published an extraordinary apology on its web site.

"[B]ecause of the sensitive nature of Jackie's story," the magazine wrote, "we decided to honor her request not to contact the man who she claimed orchestrated the attack on her nor any of the men who she claimed participated in the attack for fear of retaliation against her."

"We were trying to be sensitive to the unfair shame and humiliation many women feel after a sexual assault, and now regret the decision to not contact the alleged assaulters to get their account."

Erdely, for her part, has remained silent since the apology on Friday. Her voice mailbox is full and is no longer accepting messages. She did not respond to emails from CNN over the weekend.

On Saturday night, Rolling Stone changed the wording of Friday's apology letter, removing a sentence that said "we have come to the conclusion that our trust in her was misplaced." That sentence was condemned by some people as blaming the victim.

The revised letter said "These mistakes are on Rolling Stone, not on Jackie."

What went wrong: Was it 'belief getting in the way of facts?'

Over the weekend, Rebecca Lim, the editor-in-chief of the UVA student newspaper the Cavalier Daily, said that some of her fellow students "are unhappy with the ways that Rolling Stone portrayed the university" and frustrated that "it didn't fill in all of the gaps before publishing the article, and ended up hurting a lot of people as a result."

Sandra Menendez, a UVA student who knows Jackie and was interviewed by Erdely but not quoted, said she and several other students "felt really uncomfortable after being interviewed."

Speaking on CNN's "Reliable Sources" on Sunday, Menendez said she concluded that Erdely had an agenda: "I think she was trying to tell a really painful story, which is that sexual assault really does happen at the University of Virginia and also around the United States. I'm not quite sure if the story that was told, you know, really does speak truly to it."

Hanna Rosin, a writer for Slate and The Atlantic who raised questions about the article early on, said on "Reliable Sources" that she thought that if Rolling Stone was going to agree not to contact the alleged attackers -- "which you shouldn't, I don't think" -- the magazine should have disclosed that decision to readers from the very start.

"I think part of what went wrong is belief getting in the way of facts," Rosin said, suggesting that "wanting the story desperately to be true got in the way."

First Published: December 7, 2014: 8:31 PM ET

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These college presidents make at least $1 million

NEW YORK (CNNMoney)

Thirty-six private college presidents were paid more than $1 million in 2012, according to a report from the Chronicle of Higher Education released Sunday.

Median pay was up 2.5% over 2011, to nearly $400,000.

The highest paid president in 2012 was Shirley Ann Jackson from New York's Rensselaer Polytechnic Institute. She made $7.1 million. RPI specializes in engineering and science and has 5,400 undergrad students and 1,200 graduate students.

The president of a similarly sized school, Quinnipiac University, came in second. John Lahey raked in $3.8 million that year, his 25th at the school.

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Columbia University's Lee Bollinger made $3.4 million in 2012. Rounding out the top five are University of Pennsylvania's Amy Guttman, who got $2.5 million, and Charles Middleton at Roosevelt University in Chicago who made $1.8 million.

Some of the high-paying schools said that their 2012 compensation packages included one-time bonus payments. At RPI, Columbia, and Roosevelt, presidents were paid earnings that had been put aside over years as a retention incentive. And Quinnipiac's Lahey became fully vested in his retirement plan, which was reported in 2012 even though he won't see that money until after he retires.

Meanwhile, average tuition at private colleges was up 4.2% that year, jumping from $27,883 to $29,056, according to The College Board. And it's still on the rise. This year, tuition is up 3.7%.

More students are taking on debt to finance their college education. Forty million Americans now have at least one outstanding student loan. That's up from 29 million in 2008.

Related: 10 most expensive colleges

First Published: December 7, 2014: 6:04 PM ET

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A $7,500 slice of fruit cake

This piece of cake from Prince William and Kate Middleton's wedding is set to sell for up to $2,000.

NEW YORK (CNNMoney)

The fruit cake was given to guests at the royal wedding of Will and Kate in 2011, which one invitee sold to Julien's Auctions in Beverly Hills. The cake, which was eight tiers, took the baker five weeks to make and is said to peak in flavor 13 months after it was baked, comes in a tin along with a blank invitation to the wedding presented on the Queen's stationery.

The auction house was expecting the cake to go for between $1,000 and $2,000.

Several years ago, Julien's sold a piece of cake from the wedding of William's parents, Prince Charles and Princess Diana, for just over $6,000, according to the auction house's executive director Martin Nolan. The marital baked good was 27 years old at the time.

Related: 'Cowardly Lion' cosutme sells for $3.1 million

Friday's auction also featured five of Diana's dresses, which were expected to be auctioned off for between $60,000 to $100,000 each.

According to Nolan, Diana sold these dresses at auction in 1997, just a few months before she was killed in a car accident, at the suggestion of William, who told her she could donate the proceeds to charity. At the time, the dresses were sold for between $5,000 and $18,000, and have been kept in very good condition.

The five dresses sold for a total of over $458,000.

First Published: December 6, 2014: 4:17 PM ET

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Sony hack: Signs point to North Korea

NEW YORK (CNNMoney)

The attack is similar to last year's raid on South Korean banks and telecoms -- one that the country's intelligence officials attributed to the North Korean government.

Here are the latest findings from security researchers at antivirus maker Kaspersky.

Hackers destroyed data on Sony Pictures computers with the same kind of digital weapon used against South Korea.

The malware was built using Korean language -- an odd choice. Most hackers use English or Russian.

And the creepy message that popped up on Sony Pictures employees' computers has the same style -- colors, human skeletons, misspellings -- as those used against South Korea.

"Those are striking similarities," said Kaspersky researcher Kurt Baumgartner. "When you put all of that together, there's an actor that becomes more clear."

At left, the 2013 threat against South Korea. At right, the Sony hackers.

There are more similarities.

The malware used against South Korea was called DarkSeoul. The one used on Sony is Destover. Security experts say it's impossible to speak of one without the other.

Both were incredibly destructive to businesses. They slipped into computers and wiped them clean.

Both types of malware were built with similar timing, customized to their specific victims two days before the attack. Other hacks might use malware created with different lead times.

"It's a copycat," said Jaime Blasco, director of the computer security group AlienVault Lab, who analyzed the malware.

Then there's the motive. Sony is about to release "The Interview," a comedy about a plot to kill North Korean leader Kim Jong-Un. Is this retribution? Sony executives have already suspected North Korea might be the culprit, calling it "a terrorist attack."

What's more, the Sony Pictures hack has a different purpose than many recent ones. Cybercrime from China has been associated with stealing secrets from U.S. companies. Crime syndicates in Russia have focused on credit cards. "Hacktivists" disrupt companies or governments -- but claim a clear, idealistic mission.

The Sony Pictures hack was purely about destroying information and embarrassing the company. Hackers stole movie scripts, entire films, internal memos and personal information on movie stars and Sony employees. Then they wiped computers.

"That's why this one feels so different. This is about hurting Sony," said Carl Wright, formerly the chief information security officer for the U.S. Marine Corps and now general manager for TrapX Security.

Sony Pictures did not return requests for comment.

The timing couldn't have been worse. Earlier this year, Sony laid off many employees, including members of its comparatively tiny cybersecurity team, according to a former employee in that group.

Adding to the pain: Sony lost its top cybersecurity executive just two months ago. After a major hack of the Sony Playstation network in 2011, Sony plucked a top official from the Department of Homeland Security to be its chief information security officer. That executive, Philip Reitinger, left Sony in September to start his own firm. Sony noted that it was quick in hiring a replacement for that role.

Related: Are you safe? CNNMoney's cybersecurity magazine

First Published: December 5, 2014: 9:05 PM ET

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How much is a 4-pound truffle worth?

NEW YORK (CNNMoney)

The truffle, which was discovered last week in Italy by Sabatino Truffles, weighs in at a record 4.16 pounds and was sold at Sotheby's in New York on Saturday.

Immediately after the find, the truffle company received a $1 million offer from a buyer in China, but decided to put the delicacy up for bid instead.

This white truffle is twice the size of the existing record holder that sold for $417,200 in 2010, according to the auction house.

"This is an extraordinary find," said Federico Balestra, president of Sabatino Truffles. White truffles are rare and can only be found in select areas of Italy during three months of the year. One of the company's truffle hunters found the treasure while out with a young dog.

Related: 'Cowardly Lion' costume sells for $3.1 million

"Usually it's the older, more experienced dogs that make these finds because it takes a very trained nose to find them," Balestra explained. "White truffles can be buried 10-15 inches underground sometimes."

But this food gem was discover only about four inches down. "When the hunter started to dig, he realized how much he had to keep digging and the size of the hole he was making. He couldn't believe it."

The proceeds of the sale will go to New York City's Citymeals-on-Wheels and the Children's Glaucoma Foundation in Boston.

Related: Why this whisky costs $38,000 a bottle

First Published: December 6, 2014: 11:51 AM ET

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Buy Tom Cruise's Colorado getaway for $59 million

NEW YORK (CNNMoney)

The nearly 300-acre estate includes a 10,000-square-foot main house with four bedrooms and a three-bedroom guest house.

The home is accessed by a mile-long private road that winds past grassy meadows and aspen, spruce and pine forests.

The star of Top Gun, Jerry Maguire and the Mission Impossible, Cruise bought the property nearly 20 years ago when he was married to actress Nicole Kidman, according to Bill Fandel of Sotheby's International Realty.

But in recent years, the busy actor just hasn't had much time to get there.

Cruise helped design the home, which has been on the market since October, according to Fandel.

Tom Cruise's stunning rustic retreat in Colorado ski country is on the market.

The interior is lodge-like and has wood-paneled walls and bleached-cedar timbers.

There's a gourmet kitchen, gym, recreation room, library, and office suite.

"Meticulous" is how Fandel describes the craftsmanship of the home, which features dovetailed joinery and a native stone fireplace.

The great room is a great space to curl up with an evening cocktail.

Surrounding the Colorado property are tens of thousands of acres of U.S. forest service land, which provides gorgeous views of some of America's highest mountains, the San Juan range of the Rockies.

Related: Mansions for under a million

The property is just a 12-minute drive from the historic town of Telluride with its world class skiing and lively apres-ski destinations. Warm weather is just as much fun, with frequent events that include the world famous Telluride Film Festival, held in late summer.

The views are expansive and impossibly picturesque.

A regional airport, which makes travel easier to this relatively isolated spot, just underwent a $53 million renovation, enabling it to accommodate larger private jets.

Autumn brings a blaze of gold to the property's Aspens.

The retreat encourages being outdoors with its sweeping views, covered decks and recreational facilities. There's a network of trails for hiking, mountain biking and cross-country skiing, a motor cross track, as well as tennis and basketball courts and an ice hockey rink.

Not very far away is a storybook guest house nestled in the trees.

And guests can stay in this 1,600 square foot home tucked away in the woods.

Cruise reportedly still owns homes in California and New York.

First Published: December 4, 2014: 5:47 PM ET

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