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| The Tax Prophet Newsletter | Issue #91 November, 2010 |
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REDUCE TAXES!
CHECK OUT THE TAX PROPHET'S Action Guides |
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Introduction No, this is not the title of Wesley's newest movie: A federal court ordered the world-famous actor to start his three-year prison term for failing to file tax returns. Prior to his conviction, Snipes had the swagger of a typical tax protestor, spouting off frivolous arguments about why he was not subject to the U.S. tax laws. After his trial, his lawyers bragged about their "victory" in securing only misdemeanor convictions. But in the end, it is off to Club Fed, demonstrating once again, that when it comes to tax protestors, the feds will convict and imprison a big fish, along with the small fry. | ||
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Tax Conviction |
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Snipes received the maximum one year sentence for each of his three misdemeanor convictions. Snipes claimed he was misled by his tax advisors and was arrogant enough to file claims for millions in refunds, even though he paid no tax on $35 million of income during the six-year period involved in the case.
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Unsuccessful Appeal |
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The Eleventh Circuit Court of Appeals issued a scathing 35 page decision, unanimously upholding his conviction and mocking some of his bizarre assertions. The court noted that Snipes used phony tax protester arguments not only for his personal taxes, but with respect to his movie production companies and stopped paying payroll taxes for his employees. At various times, Sniped claimed he was a "foreign diplomat" and a "fiduciary of God", and, therefore, not subject to U.S. taxes. The appeals court held that the failure to file tax returns and pay approximately $17 million in taxes supported the district court's three-year sentence.
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Jail |
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After the Court of Appeals affirmed his conviction, the trial court judge ordered Snipes to jail, stating that "The Defendant Snipes had a fair trial; he has had a full, fair, and thorough review of his conviction and sentence by the Court of Appeals; and he has had a full, fair, and thorough review of his present claims, during all of which he has remained at liberty. The time has come for the judgment to be enforced."
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Conclusion |
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Snipes is the most famous of a long list of tax protesters who learned the hard way that criminal tax violations inevitably lead to significant prison time, as well as financial ruin. The Lesson: If a super-action movie hero could not escape the clutches of the IRS and the federal court system, why would a mere mortal attempt it?
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contents copyright © 2010 Robert L. Sommers, attorney-at-law. All
rights reserved. This newsletter provides information of a general
nature for educational purposes only and is not intended to be legal
or tax advice. This information has not been updated to reflect
subsequent changes in the law, if any. Your particular facts and
circumstances, and changes in the law, must be considered when applying
U.S. tax law. You should always consult with a competent tax
professional licensed in your state with respect to your particular
situation. The Tax Prophet ® is a registered trademark of Robert L.
Sommers.
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