Johnny Carson Died in 2005. Five Years Later, A Quiet IRS Filing Accidentally Exposed A Massive Suprise For One Charity

Before David Letterman, Conan O'Brien, Jay Leno, Jimmy Kimmel, Jimmy Fallon, and Stephen Colbert, there was one undisputed king of late-night comedy: Johnny Carson. Johnny Carson reigned over "The Tonight Show" for 30 straight years, from 1962-1992, and is widely considered the greatest television host of all time. Comic greats like Jerry Seinfeld and Drew Carey trembled in Johnny's presence and owe their entire careers to his legendary couch.

Johnny won countless awards, including six Emmys, a Peabody, and the Presidential Medal of Freedom. As if all that wasn't enough, he was also one of the most privately philanthropic celebrities in the history of Hollywood. During his lifetime, Johnny donated millions of dollars to various charities without seeking an ounce of personal attention or publicity.

Johnny died in 2005 at the age of 79. Most people (correctly) assumed he passed away extremely wealthy and probably left something to charity after taking care of his family. But then, something unexpected happened in 2010 — and it all came to light because of a single IRS filing quietly submitted by Johnny's longtime accountant and lawyer.

Johnny Carson talking to co-host Ed McMahon on The Tonight Show in 1988 (Getty).

From Radio to Television

Johnny Carson's career in show business actually began in radio, not television. After serving in the Navy during World War II, he returned home to attend the University of Nebraska, where he graduated with a degree in radio and speech. He launched his broadcasting career by hosting a local radio show in Omaha, quickly developing a loyal fan base. His popularity led to appearances on the station's affiliated television network.

In 1951, Johnny moved to Los Angeles and began hosting his own show, "Carson's Cellar," on KNXT. The quirky, offbeat program earned him a cult following and opened the door to bigger opportunities. Just two years later, he was hired as a writer for Red Skelton's popular television variety show. Over the next several years, Johnny hosted a string of short-lived TV programs and game shows, including "Who Do You Trust", "Earn Your Vacation", and "To Tell The Truth".

In January 1962, Jack Paar announced he was stepping down as host of "The Tonight Show." NBC's first choice for a replacement was Johnny, but he initially declined the offer — he had never interviewed celebrities and wasn't sure he was up for it. NBC spent months courting other comedians before circling back and convincing Johnny to give it a shot. "The Tonight Show Starring Johnny Carson" premiered on October 1, 1962.

The King of Late Night

Johnny's version of The Tonight Show was an instant hit with audiences. Johnny's version of "The Tonight Show" was an immediate hit. Within a decade, it became one of the most-watched programs on television, regularly drawing 11 million viewers each night. For most of its 30-year run, Johnny was joined by longtime sidekick Ed McMahon and bandleader Doc Severinsen, creating a dynamic trio that became television icons.

Johnny Carson's Salary History and Business Empire

When Johnny Carson first took over The Tonight Show in 1962, NBC signed him to a contract worth $100,000 per year, the equivalent of about $1 million today. As the show quickly became a cultural phenomenon, NBC moved to lock him in with increasingly lucrative deals. By 1967, his salary had jumped to $400,000 per year (about $4 million today), and by 1970, it had increased again to $1 million annually, or roughly $7.3 million today.

By 1975, The Tonight Show was the most profitable program on television, generating $50–60 million per year for NBC — the equivalent of $300–$360 million today. That same year, Johnny became the highest-paid entertainer in the world, with an annual salary of $4 million, which would be about $25 million today.

In 1980, Johnny negotiated a groundbreaking contract that would solidify not only his financial future but also his creative control. The deal gave his company, Carson Productions, ownership rights to The Tonight Show as well as Late Night with David Letterman, which premiered later that year. This arrangement gave Johnny substantial backend profits in addition to his salary.

By 1991, as he was preparing to step away from late-night, Carson was earning $25 million per year. That's the same as earning $60 million today, and made him one of the highest-paid television personalities of all time.

Business Ventures, Investments, and Real Estate

Johnny Carson's financial success extended far beyond his NBC contract. In the 1970s and 1980s, he built a quiet but highly effective business empire that included apparel, media holdings, and real estate.

One of his more visible ventures was Johnny Carson Apparel, a clothing line known for its signature pants and turtlenecks. The line was modestly successful and served to further elevate his personal brand. He also made significant investments in broadcasting, purchasing two television stations — both of which he later sold at a profit.

Carson was also one of the largest individual investors in the DeLorean Motor Company, a risky bet that ultimately failed when the company collapsed in the early 1980s. While that investment didn't pan out, it was a rare miss in an otherwise savvy financial life.

Johnny's real estate holdings were especially valuable. In 1984, he paid $9.5 million for a stunning property in Malibu. The 16-bedroom, four-acre oceanfront compound in Malibu sits on a bluff looking out at endless ocean views. The master bedroom spans the ENTIRE SECOND FLOOR. At some point, NBC gifted Johnny with a tennis court on the property, and to top it all off, they gave him a real section of seats from Wimbledon.

Johnny's widow, Alexis, sold the property and two adjacent parcels in 2007 for $46 million. The compound was listed again in 2017 for $81 million. A one-acre portion that features Johnny's former home sold in June 2019 for $26 million.

Marriages and Divorce Settlements

Johnny Carson was married four times over the course of his life, and his divorces came with high price tags. His most expensive settlement came in 1985, when he divorced his third wife, Joanna Holland, after 13 years of marriage. The split resulted in a massive $20 million payout, which would be approximately $43 million today, and required an 80-page legal agreement.

Earlier, in the 1970s, Carson had paid a $500,000 lump sum to his second wife, Joanne Copeland, along with a deal to provide her $75,000 per year for life. Despite these high-profile and expensive separations, Carson remained private and rarely commented on his personal life in public interviews.

Johnny and Alexis Carson in 1995 (CARLO ALLEGRI/AFP/Getty Images)

The Massive Philanthropic Secret

Throughout the final years of his life, Johnny Carson had quietly donated $1-2 million per year to his charitable foundation. These gifts were generous, but not headline-grabbing, which was exactly how he wanted it. His philanthropy operated entirely out of the spotlight, with no press releases, no red carpets, and no named galas. Even insiders at the Johnny Carson Foundation assumed it would remain a relatively modest operation, funded by whatever was left in his estate after his death, or maybe, if they were LUCKY, the annual $1-2 million gifts would continue for a while.

It goes without saying that Johnny Carson died wealthy. After 30 years of hosting the most successful late-night show in history, combined with smart business deals, real estate investments, and backend ownership of multiple TV properties, there was no doubt he had left behind a fortune. But no one — not the public, not the media, and not even the foundation itself — had any idea just how much he had set aside for charity.

Then, in August 2010, five years after his death, everything changed.

For younger readers, 20 years ago, a website called TheSmokingGun.com was the ultimate source for digging up unfiltered legal documents, celebrity mugshots, bizarre lawsuits, backstage contracts, and more. TMZ came along in 2005, but it wouldn't truly hit its tabloid stride until a few years later. Before that, The Smoking Gun was the go-to source for raw, primary-source dirt, not gossip, but the actual files.

In August 2010, The Smoking Gun uncovered a subtle IRS filing that the John W. Carson Foundation filed an IRS Form 990-PF. Here's the actual form, note the red arrow:

In English, this form revealed that Johnny's estate had transferred $156,579,032 to the John W. Carson Foundation – $35.2 million in cash and $121.2 million in securities. Oh, it also received his ongoing royalty rights.

The only people more stunned than the public were the foundation's own directors. There had been no announcement, no press coverage, no family statement, and no leaks. The trust had been quietly established in 1988, and the explosive transfer wasn't made until years after Johnny's death. It only came to light because, legally, the IRS required it to be disclosed.

In the span of a single tax year, the foundation went from a quiet nonprofit to the best-funded celebrity charity in Hollywood, eclipsing even the David Geffen Foundation, which at the time reported $80 million in assets.

Thanks to additional gifts and royalties, within a few years, the foundation found itself sitting on $200 million. FYI, that's the same as around $280 million today.

Today, the John W. Carson Foundation continues to operate with assets of around $120 million, making it one of the most well-funded celebrity-backed charities in the country. Each year, it distributes $15-16 million in grants to a wide range of causes, with a focus on education, healthcare, the arts, environmental conservation, and organizations serving children and underserved communities — particularly in Los Angeles and Nebraska, where Johnny had deep personal roots.

It was, in every way, Johnny Carson's final monologue — quiet, deliberate, and delivered with perfect timing.