Wesley Snipes jailed for 3 years in tax case

[hyphenate]

Source: Reuters

By Barbara Liston

OCALA, Florida (Reuters) - A "very sorry" Wesley Snipes, star of the "Blade" movies, was sentenced to three years in prison on Thursday for willfully failing to file U.S. income tax returns for 1999 through 2001.

Snipes was convicted in February on three misdemeanor counts. U.S. District Judge William Terrell Hodges handed down the maximum sentence and said he felt it was important to create a general deterrent against tax defiance.

"I am very sorry for my mistakes and errors," Snipes told the judge. "This will never happen again."

He read a prepared statement, describing himself as an "idealist, naive, passionate, truth-seeking, spiritual-seeking artist" who epitomized the expression "mo' money, mo' problems."



Read more: http://www.reuters.com/article/entertainmentNews/idUSN2419088420080424

---

How fucking ridiculous. Sounds like Snipes has decent reasons for an appeal. You have to wonder how much racism was involved in the sentencing.

[lost-in-nj]

1. what the hell is going on

I wonder

if he was drunk when he filed his taxes
and hit someone on the way to mail them
would he have gotten

lets say


44 hours in jail
with a release after 15????

WTF

lost

[GodlessBiker]

2. Decent reasons for an appeal? He failed to file tax returns.

[hyphenate]

5. It's not the crime

I was referring to--the article even says they were misdemeanors. It's the 3 year sentence. That's patently ridiculous for failing to file taxes.

[raystorm7]

8. lol Hey, thats the plight of a black man in America *shrugs shoulders

[GodlessBiker]

12. As someone who files tax returns and makes a lot less money, I don't think the sentence is too harsh

[hyphenate]

15. yeah

I suppose if your name is Al Capone. A year sentence for each year of taxes? I'd love to see the sentences this judge gave to white rich men.

[razors edge]

24. Let me get this right,

if my employer over-witholds and I don't file to get the money back, I should go to jail just like Snipes.

[RantinRavin]

26. Depends on your income

You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive.

For example, a married couple both under age 65 generally is not required to file until their joint income reaches $17,500. However self-employed individuals generally must file a tax return if their net income from self employment was at least $400.

Check the “individuals” section of the IRS Web site at IRS.gov or consult the instructions for form 1040, 1040A or 1040EZ for specific details that may affect your need to file a tax return with IRS this year.

[razors edge]

29. I'm more familiar with the laws on income taxes than most.

The question was rhetorical.

If I paid taxes on $100,000.00 and do not file and do not owe, should I go to jail?

[GodlessBiker]

30. But snipes didn't pay taxes on his income. He paid $5 million on the day of sentence.

I'm tired of rich people being held to a different standard than the rest of us. He should go to jail.

[razors edge]

33. And I'm tired of lower court judges

who rule the law as interpreted by the Supreme Court to be frivolous, irrelevant and inadmissible.

I guess we are both screwed when it comes to our wants.

Edit: But he was convicted of failure to file, and sentenced for that, correct?

[PassingFair]

55. My accountant says that if I've PAID the tax, I'm not required to file...

is he wrong?

:shrug:

[slackmaster]

61. Yes, he is wrong.

:nuke:

The only thing paying saves you from is penalties for underwithholding (or for non-payment).

[razors edge]

72. No he isn't.

Because technically no one is required to file if they are not earning taxable income.

The USSC has ruled that the sixteenth amendment gave the federal government no new taxing authority, so any tax on wages that is direct and unapportioned is not authorized, therefore you were never liable for it to begin with. That is the crux of the whole issue.

The sixteenth has also been shown to have not actually been ratified, only enacted.

I have no problem with paying an income tax if the government were actually using it to help people, but they are not.

Let them try to actually pass the sixteenth amendment today and see how much support there would be for it.

[JeanGrey]

31. Not only that he tried to stay overseas to avoid prosecution.

[marshall]

64. I wonder if he could have plea bargained

So often in these cases the defendant had the chance to plead down but decided to take a chance with a jury or a judge.

Isn't Richard Hatch still languishing in jail for not paying taxes on his Survivor winnings?

[bluesmail]

3. another 'Martha Stewart' succumbs to the neo-cons in power

I don't know how much more of the 'if you're one of us' vs. not one of us I can bear.

[cstanleytech]

4. *raises eyebrow* Umm wasn't he convicted for not

paying his taxes not for lying while not under oath like Martha, two different types of cases you would think.

[Dreamer Tatum]

14. He didn't pay taxes on $38MM in income

Prosecuting him is now a "neo-con" ploy?

I wonder how people here would react if Snipes was white and a former exec at Enron. Wait, I can pretty much guess.

[hyphenate]

16. I'd like to see

how harsh this judge WAS to rich white men. A Bush appointment, no doubt, whether it was 41 or 43, it makes little difference.

[Dreamer Tatum]

18. It's a good point...question is whether serious tax evaders should do any time

...I can see both sides, but tend to come down on the serious fine and probation side.

[bitchkitty]

36. Did any of the Enron guys go to prison? n/t

[Dreamer Tatum]

42. I don't know. Let's wait till 3 years ago to find out. nt

[Seeking Serenity]

57. Sure.

Andrew Fastow got 10 years for a guilty plea, and Lea Fastow got five months, plus five months house-arrest.

Ben Glisan, Jr. has already gone to prison. I don't know for how long.

Jeffery Skilling got a 24-year sentence.

There were others, but I've forgotten.

[superconnected]

6. I'm pulling a race card on this. Wesley Snipes is BLACK.

I've never heard of this happening to a white person.

I am white btw so it's pretty bad if I see it.

[RantinRavin]

21. He got the least sentence

Co-defendant Eddie Ray Kahn, a longtime tax protester who coached clients of his American Rights Litigators on how to beat the tax system, was sentenced to 10 years in prison.

Co-Defendant Douglas Rosile, who prosecutors called a "defrocked certified public accountant," was sentenced to 4-1/2 years for his part in the scheme. Both were convicted of conspiracy and tax fraud.

[superconnected]

25. Read what it says after that though -how he owed less than 400k

and willie nelson and some other famous guy got off for millions for the same crime.

[happyslug]

37. Wilie Nelson problem with the IRS was an accounting dispute, NOT fraud..

Willie Nelson took tax advice from Price Waterhouse, a major CPA firm, on tax shelters. The IRS later determined these shelters were invalid, and Willie Nelson had to pay taxes on the income. No evidence was produced showing Nelson deliberately made false statements, thus no criminal liability, all he had to was pay a huge tax bill. Thus Nelson ended up with a Huge tax bill, but no criminal liability.

http://www.taxfables.com/Columns/Collections/Willie_Nelson.html
http://query.nytimes.com/gst/fullpage.html?res=9D0CEFD7113FF931A3575AC0A967958260&sec=&spon=&pagewanted=all

Wesley Snipes, unlike Willie Nelson, relied on a known tax scammer. The Grounds Snipes claimed for NOT paying taxes had long been held by the IRS to be scrams NOT just an accounting mistake. This Snipes is not only liable for taxes he did NOT pay, but for CRIMINAL FRAUD on the refunds he claims AND his failure to file tax returns. For more see:

http://www.eonline.com/news/article/index.jsp?uuid=f58d1c9b-34d7-4a0d-a930-435ee916fbeb
http://www.rottentomatoes.com/news/1706928/

Notice, one other factor, Willie Nelson only went in front of the IRS itself. The only question was how much tax he owned. Being a tax case NO JURY, for the only issue was how much Willie Nelson owned, NOT criminal charges.

Wesley Snipes was tried by a JURY, which involved CRIMINAL acts of failing to file Income Tax forms WHEN HE KNEW HE HAD TO (which he was found GUILTY of by the Jury) AND Tax Fraud and Conspiracy to Commit Tax Fraud (Which the jury ruled Snipes NOT Guilty). Given the number of years he had been involved with the other members of this particular tax fraud he was luckily.

As to the Sentence, Wesley Snipes is front page news, thus he will get the Maximum sentence. This is an old IRS, Federal Prosecutor and Judges practice, if you are front page news you will get the maximum sentence for that sentence will be front page and people will remember NOT to do such scams. If he had been a nobody (i.e. back page at best) he would have been fined and told NOT to do it again.

Leona Helmsley also served time for tax fraud. In her case it was her accountants practice of writing off improvements in the hotels she owned as expenses instead of capitalizing those costs. i.e. instead of capitalized the costs to be depreciated over the life time of those costs, she just wrote off the costs in the year incurred, even though that violated IRS rules as to what was "Income". She served 18 months. They is a question if she knew of the problem with this accounting treatment of these expenses, but she was ruled by the Jury to have known about this treatment AND THAT IT WAS ILLEGAL. Again if it was not for the fact she was front page news she would have been fined and had to pay taxes on the income she earned but did not claim. More an accounting error than a real error (But given her tendency to control things she might have been the person who told her accountants to expense those costs instead of capitalizing them, if that was the case, and the jury found that to be the case, she was liable for the taxes NOT paid and the criminal fines and jail time.

http://en.wikipedia.org/wiki/Leona_Helmsley

Thus the problem for Wesley Snipes is he is guilty but he is also front page news. The prosecutors asked for three years (One year for each year of no filing) and the Judge gave it to him. Neither the prosecutors nor the Judge would have even thought of such a sentence for someone who was NOT front page news, but if you front page news expect the worse. That is why Leona Helmsley received her 18 months and why Snipes received his three years.

[Snarkturian Clone]

49. I love that old Sam Kinison bit about how Willie Nelson

thought he was supposed to pay Texas, not taxes, so he had a big party for Texas every year and that's why he got busted. :rofl:

[superconnected]

28. Wrong, says her he got the maximum for what he did.

The other two are guilty of other crimes.

http://movies.yahoo.com/mv/news/ap/20080424/120908544000.html

[girl gone mad]

75. The white guy who won Survivor..

was sentenced to five years for tax evasion.

http://en.wikipedia.org/wiki/Richard_Hatch_%28Survivor_contestant%29#Tax_evasion_conviction_and_imprisonment

The IRS likes to make examples out of high profile tax dodgers.

[Norrin Radd]

7. It's too bad Wesley wasn't

a multinational corporation with an offshore account / tax haven -- those fuckers never pay their fair share to keep things running here.

Fucking ridiculous, indeed.

[superconnected]

9. He allegedy owed less than 400k

"She said Snipes owed less than $400,000 in taxes for the three years related to the convictions and should not be jailed.

Moreno cited the cases of former Washington mayor Marion Barry and singer/actor Marc Anthony, who avoided prison after failing to file tax returns, and singer Willie Nelson, who remained free despite owing $17 million in back taxes.
"

[RaleighNCDUer]

10. Three years on three misdemeanors?

WTF kind of sentencing is that?

[BadgerLaw2010]

52. One year per misdemeanor, consecutive. Entirely allowed.

Pay your taxes.

[varkam]

11. I think part of the reason that the sentence was so harsh...

was that Snipes was a vocal tax protestor, i.e. one who believed that paying federal income tax is unconstitutional. I think the judge probably took that into consideration when sentencing him.

[hyphenate]

17. It still shouldn't matter--

justice should be doled out with some equanimity, and I doubt if that was the case.

[varkam]

45. It shouldn't, but it does.

For instance, thumbing your nose at the courts and their laws tend to make them treat you less than favorably when it comes time for them to determine your sentence - even if it has nothing to do with the crime itself.

[ozymandius]

22. This really bends two ways.

First, a misdemeanor is characterized by a sentence of a year or less. More than a year's sentence, obviously, would indicate a felony conviction.

Second, it is possible that multiple identical misdemeanor charges can merit a felony sentence if found guilty. The fact that anyone regardless of skin color, social and economic station and offense, even an infraction (less than a criminal charge) given its repetitive occurrence, can elevate that offense into the felony realm.

So my question is: what was the judge, the prosecution and the defense council thinking? Methinks it was somewhere along these forementioned lines.

[depakid]

34. I suspect the judge didn't like the aquittal on the felony charge

and so imposed consecutive sentences for the misdemeanor convictions.

[varkam]

46. I'm not sure what you mean.

The fact that anyone regardless of skin color, social and economic station and offense, even an infraction (less than a criminal charge) given its repetitive occurrence, can elevate that offense into the felony realm.

It could be that the coffee just hasn't kicked in for me yet, but I'm not sure what you mean here.

[ozymandius]

47. Let's say someone is accused of petty theft.

And then let's say that it is discovered that occurrences of petty theft happened three times in the past year. Three x monetary value of each incidence of theft could, when bundled together, make the case for grand larceny.

That was one plausible scenario. Whereas Mr. Snipes has received a three year sentence, it sounds as though, as depakid says, the judge imposed the maximum sentence on three consecutive misdemeanor charges. That makes the most sense.

edit: Mr. Snipes was very wise to display contrition before the judge. The prosecutor probably heard the same before the sentence was read.

[FVZA_Colonel]

43. How the hell is it unconstitutional?

Isn't it something to do with typographical errors in the ammendments submitted to the state's or something?

[varkam]

44. Beats the hell out of me.

I don't understand why they argue it, but they do nonetheless.

[BadgerLaw2010]

53. Frivilous argument that the IRS fines you for making. Tax protestor idiocy, basically.

[Lorien]

66. Google "Freedom to Fascism". A lot of people have been hoodwinked

into believing that they can get away with not paying income taxes because it's "unconstitutional" for a government to impose them.

[OhioChick]

13. This is Ridiculous...

Too harsh a sentence, IMO.

I'm waiting for Blade 4. :)

[AlphaCentauri]

19. anyone for a progressive flat tax?

:hi:

[BadgerLaw2010]

54. No such thing.

[AlphaCentauri]

58. Has to be invented to get rid of the corporate tax loop holes

[RaleighNCDUer]

60. "Progressive flat tax" is an oxymoron.

Progressive and flat tax contradict each other.

[AlphaCentauri]

62. The European Union is kicking an alive with a progressive flat tax

what is really a contradiction is the so called progressive income tax which gives large loopholes to the small percentage who make more than 200 000 but punish the rest. Taxing everything that is consume it's a far better option than taking hard earned money.

[RaleighNCDUer]

80. Bullshit.

'progressive' and 'flat tax' are absolutely contradictory. If it is flat it cannot be progressive - if it is progressive it cannot be flat.

What you are talking about is a consumption tax instead of an income tax. And that is ALSO not progressive, because when you are poor a much larger percentage of your income is applied to living expenses, whereas the rich pay a disproportionate amount less for necessities, meaning that the poor pay tax on what they need, and cannot do without, while the rich pay tax on what they want, and may or may not pay as they choose.

The problem with the progressive income tax is not the tax, but the loopholes - eliminate the loopholes and solve the equitability problem.

[AlphaCentauri]

81. Income tax it's the corruption tax

loop holes, political populist use it to conquer government offices by giving tax breaks, a consumption tax would be more progressive if in a single tax it include for retirement, for healthcare, education and other necessities. The rich could pay their share in every transaction they make and in every investment. John Doe who makes 35 000 a year expends 30 000 and pay a flat tax of 18% that will cover his health insurance, public services and retirement. He won't have to expend money in health insurance, mean while a rich folk who buys his new maserati for 100 000 dollar will pay the same 18% which would be more money in a single transaction than what john pay during the whole year. Applying a tax to every single transaction will cut all the loops there are.

[aasleka]

20. WTF! misdemeanors? ridiculous

[OKthatsIT]

40. Compared to TREASONOUS LIBBY getting 18 mos?!!

The federal system has been hijacked...no doubt about it.

[Ganja Ninja]

56. Don't forget he's a black man.

They have to make an example of him. Can't have them getting out of line you know.
:sarcasm:

[Freeusfromthechurch]

23. First you must educate yourself on the truth

Watch the 2 Documentaries and then express your opinion.

Freedom to Fascism
http://video.google.com/videosearch?q=Freedom+to+Fascism&sitesearch=

The Money Masters
http://video.google.com/videoplay?docid=-515319560256183936

[DaveJ]

27. I think it's due to the extent and willfulness of the act

From what I read he withheld $17 million, and not in the way most people may fudge on their taxes. He was a part of "American Rights Litigators, an organization founded by Mr. Kahn. Prosecutors have described that organization and its successor company, Guiding Light of God Ministries, as illegal tax-evasion scheme." (http://www.nytimes.com/2008/04/25/business/25snipes.html?hp)

So. from what I read, it definitely sounds intentional, and not a simple 'mistake'.

As far as the extent goes, it's not like when a normal person cheats to get a few hundred dollars. This is $17 million which the government considers to be their money, which should have gone back to the public. Compared to an average person stealing from his employer, it's like comparing stealing pens and paper to stealing a company car.

On the other hand, over half the money would have gone to killing and spying on innocent people, so I can see both sides of the argument.

[readmoreoften]

74. So you're telling me that all the loopholes white corporate folks create lands them in prison.

Most of business is a freaking tax evasion scheme. Make him pay back the money, give him six months in prison. Not three years.

[goclark]

32. And Rush calling for riots in Denver

and he won't get a second -- go figure.

[Trillo]

35. "felt it was important to create

"a general deterrent against tax defiance

This is the same logic educators often use to justify overly harsh student punishments. Make a zero-tolerance example, so the others comply. Somehow concepts of equality or equal punishments goes out the window with such underlying logic.

[ElsewheresDaughter]

38. Do you guys think this will effect the release date of "Blade IV?"

[Snarkturian Clone]

50. We can only hope. NT

[Kaleva]

63. It'll be a two hour movie...

of the kick ass vampire killer learning how to make specialty license plates by day and having prison sex with his cell mate at night.

[OKthatsIT]

39. The Banks created mortgage crisis...and WE pay the damages

Very cushy Cartel business. Snipes getting hit was just a message from the Big Boys.

WE're all ready bankrupt...but its just not enough debt for these scum. They want to squeeze every drop of blood from US...before they pull the plug.

All WE, The People, have to do is print our own money. Hello?

[MilesColtrane]

41. My advice for Wesley Snipes:

"Always bet on (H & R) Block."

[blueknight]

48. meanwhile,

rapist and murderers are walking our streets....

[Snarkturian Clone]

51. 3 years? Holy shit!!!

Not for nothing but I would be planning my discreet egress to another country a la Roman Polanski.

[doodadem]

59. I think that could be a life sentence for Snipes

You just know every bad ass in prison is going to be trying to practice his martial arts moves on Snipes. I'll be amazed if he makes it out alive............

[INDIA]

77. That's ridiculous. He'll probably end up Federal minimum or medium security.

I'll be "amazed" if he gets touched.

[FlaGranny]

79. Don't count on that.

I know a man who spent 18 months in a Federal prison. He is white, but not very bright - actually not bright enough to have conceived the crime he was convicted of. He came out of Federal prison with a permanent nerve damage. His was a case of the real perpetrators going free and the little guy getting the time. In fact, this guy is so "childlike" I don't believe he even knew he was involved in a crime.

[timtom]

65. I musta passed over this a dozen times today

and I kept thinking, "Hmmm, Wesley Snipes is in a bit of trouble over income taxes."

Till just now, when it hit me, "God Almighty!!! Three years of prison???"

Outrageous!!!

[earth mom]

67. This is TOTAL BULLSHIT. They are making an example out of Snipes because he's famous.

Maybe it's because he's black too, but basically it's so the powers that be can show the public they'd better not mess with the IRS!

There are no doubt millions of people who don't file their taxes in this country, but they chose to go after Snipes instead! :grr:

The powers that be made an example of Martha Stewart too.

[-..__...]

68. The rich and famous never get a break!

The bastards went after Paris Hilton the same way. And for what... because she was white, rich and pretty!

(Mental note... if I ever become rich and famous I'll be sure to file my tax returns and/or hire someone to do my drinking and driving on a suspended license for me).

[earth mom]

69. You miss the point. How many people are going to jail over their taxes in this country?

Answer: Very few.

Why not just let Snipes pay what he owes in taxes and fines, instead of making an example of him by putting him in jail? That's what is total bullshit.

As for Paris Hilton, she deserved the same punishment as others who did the exact same thing she did. Drinking and driving is a much more serious offense, so I'm not surprised she was punished with Jail.

[cstanleytech]

70. So what?

He did break the law and there is no question about that, I just wish more people in power in the end actually ended up paying for their crimes like Bush has not payed for his.

[earth mom]

71. No, Snipes is being made an example of because it will make news.

If this was just some rich dude from middle america, no one would give a damn.

It's because it's Snipes that this was done to him.

The message is: Don't FUCK with the IRS.

[readmoreoften]

73. This is some racist-ass BULLSHIT. Three years? THREE YEARS?

Why isn't Willie Nelson in prison? WTF. I'll tell you why, cuz some rednecks would pitch a fit, that's why. This is outrageous. Make him pay the goddamn taxes back. Don't imprison the man!

[melm00se]

76. in support of Snipes

why not protest by not listing your wages, not pay your taxes and then try to declare yourself a non-resident alien to avoid a the inevitable indictment.

[Oreegone]

78. Conspiracy theory

They may want to make black men look powerless, great time to do this with a black man running for president.

I can't imagine he is the only person of his stature in this situation right now.