I'll accept that the other contest participants earn something. The winner's
prize is ordinary income. There is withholding on ordinary income. Any of
these contestants would have been required to give the producer a W-4 (and the
California equivalent) to identify name, address, and Social Security Number
for tax purposes. FICA/HI (Social Security Old-Age Pension and Medicare
taxes) would have been withheld, too.
If one is underwithheld, then one is required to pay quarterly estimated
taxes. Now, if one's income is substantially higher this year than the
previous year, there are "safe harbors" for being underwithheld and
there aren't penalties and interest for not having made estimated tax
payments. But taxes are still due April 15.
You're wrong about Hatch's tax problems. The contest didn't take place in
Los Angeles, but Borneo, in the part controlled by Malaysia. They were
subject to Malaysian tax laws, whatever those are, and as Hatch is a United
States citizen, he's obliged to report his worldwide earnings. Unless
provisions of a tax treaty apply, there's no US withholding on foreign
earnings. Unless provisions of a tax treaty apply, the taxpayer pays taxes
to the foreign tax administration, and pays US taxes on all foreign earnings,
but receives a credit for foreign taxes paid or accrued. Some states tax
worldwide income as well, although residency rules apply. Hatch may have been
in Borneo long enough that he may have been able to argue that he wasn't a
resident of his home state and would have filed his state taxes based on
part year residency, while still being required to report everything.
Furthermore, it wasn't just that Hatch hadn't paid his taxes. He hadn't
filed. If he'd filed a reasonably accurate return, he would have faced
penalties and interest for unpaid taxes, but not criminal charges for
late payment of taxes.
The only thing the producer may have screwed up was not withholding
Malaysian taxes if required.
Now, a Jeopardy! winner works at the television studio in the United States,
so federal, state, and FICA/HI taxes will have been withheld. He may have
to screw with an additional state tax return and seek a refund or get a
credit on the tax return of his home state, depending on interstate tax
agreements, but he's unlikely to have been substantially underwithheld.