Government Falters in Conviction of Snipes
Posted on February 5, 2008
Filed Under Celebrities, Criminal Law |
Wesley Snipes, star of the Blade trilogy and many other popular films, was the defendant in one of the most intriguing and provocative cases in history. Mr. Snipes reportedly made in the neighborhood of $38 million between 1998 and 2004, starring in a half dozen or so films. However, it was reported that he paid no taxes during that time. Snipes claimed that he didn’t believe he had to pay taxes. He became the most prominent person prosecuted for tax evasion since Leona Helmsley, i.e. the Queen of Mean, was convicted in 1989 and ordered to serve 19 months in prison and 2 more under house arrest.
Snipes was charged with conspiracy to defraud the government (which is a felony), filing a false claim for a $7 million refund (also a felony) failing to file a tax return for six straight years and other minor charges. Snipes argued that he was not guilty and acted on the advice of two individuals (who were also charged in the case).
Snipes’ co-defendants were Eddie Ray-Kahn, the founder of a tax protest group, and Douglas P. Rosile, the accountant who did all of the work for Mr. Snipes.
The attorney representing Snipes is Robert Beinhoft. Mr. Beinhoft has been barred by court order from selling a program in which he said people could legally stop paying income taxes. This particular issue of tax protest has been a major one, and while most individuals who argue that they have no obligation to pay federal taxes are convicted, a few do have mixed results. Joseph Banister, a former criminal investigator for the IRS and Tom Cryer, a Louisiana Lawyer, were acquitted of similar charges by the IRS. However, in every case where an individual has been found not guilty, they are still held responsibly for their taxes regardless of the legal outcome.
The arguments put forward by Snipes’ attorney included: that the tax code meant no citizen “had” to pay taxes on income earned in this country and the agency had no legal authority to collected wages anyway, because it is not a proper government agency; and, that Snipes was victimized by crooked advisers (Ray-Kahn and Rosile), and tried for years to get the IRS to explain whether he owed taxes. Prosecutors say Snipes paid taxes in the 1990’s, up until he met Kahn in 2000. He allegedly stopped filing returns, illegally sough $11 million in 1996 and 1997 taxes paid and drew fake checks to pay the U.S. Treasury.
In cases of this matter, the IRS bears a unique burden of proof, being that it is a criminal case. The agency must show not only that someone broke the law, bur he/she did so with willful, bad purpose to defraud the government. This precedent was set in Cheek v. United States, 498 U.S. 192 (1991). Basically, they have to prove that Snipes not only intended not to pay taxes, but that he did so with the intent of causing the government harm in some way.
The trial was before a jury, which is tricky due to most people’s disdain for the IRS and knowledge of Mr. Snipes due to his celebrity. Many Los Angeles criminal cases involving celebrities are difficult to prosecute because juries feel they know the defendant, and current LA District Attorney Steve Cooley has said as much.
The jury acquitted Snipes of tax fraud and filing a false claim, but convicted him on three other misdemeanors of willful failure to file a tax return. Had be been convicted on all counts, Snipes would have faced up to 16 years in prison, now he faces up to only 3 years. He now must also see if he faces prison for not declaring his income from 1999 – 2004 in the proper manner, which cost the tax authorities millions of dollars.
Snipes Attorney was quoted as saying “Our position has been all along that Mr. Snipes committed no fraud. He had no bad intent, and that’s what the jury accepted.”
However, Snipes co-defendants, Kahn and Rosile, were convicted of fraud and filing false claims, and face up to 10 years in prison for the convictions.
HISTORY
The 16th Amendment to the United States Constitution established the Income Tax. Passed in 1913 under then President Woodrow Wilson, it overturned a Supreme Court case known as Pollock v. Farmer’s Loan & Trust Co. That case limited Congress’ ability to levy a tax on income. There has been great controversy as to the ratification of this amendment, as many say that it was never properly ratified. The process to amend the Constitution is an arduous one, and there have been claims, and even books written, that not only weren’t there the proper members present in Congress, but that there were incredible inconsistencies in how the states ratified the amendment.
There have also been arguments put forward by what are deemed “tax protesters” claiming that the amendment doesn’t permit the taxation of individual income or particular forms of individual income. They are referred to using “861” which is the particular part of the tax code that is often brought into question. Others also claim that the 1st and 5th Amendments eliminate any obligation to file a return.
These arguments have never been taken seriously in a court of law; however factional organizations have taken up this cause and even current presidential nominee Ron Paul has been affiliated with such groups.
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3 Responses to “Government Falters in Conviction of Snipes”
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I didn’t know not filing taxes was a CRIMINAL offense. I might need to get a lawyer myself. Interesting how celebrities always get off Scot free.
Celebrity issues aside, I am a fiscal conservative and tax evaders just make me mad. Why? Because guess who has to pick up the slack? Yea, those of us who do NOT make over seven figures, that’s who~!
For more info on the IRS’s take on these bogus claims, check out: http://www.irs.gov/pub/irs-utl/friv_tax.pdf .
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