Celebrity and Not So Celebrity Tax Protesters and Evaders
Richard Hatch Gets 9 More Months in Prison
Published March 11, 2011
| Associated Press
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Richard Hatch. (AP)
Reality TV star Richard Hatch has ordered back to prison to serve a nine-month sentence for failing to pay taxes on the $1 million he won on the first season of the hit CBS show "Survivor."
Hatch, who is currently appearing on NBC's "Celebrity Apprentice," spent more than three years in prison for tax evasion, and has been serving a term of supervised release. During that period, he was supposed to refile his 2000 and 2001 taxes and pay what he owed, but he never did.
U.S. District Court Judge William Smith on Friday gave Hatch a sentence three months longer than the guidelines to deter him and others who would flout the terms of supervised release. He ordered him to report to prison Monday.
Hatch says he's disappointed and will appeal.
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January 6, 2011
Top 20 Celebrity Tax Debtors part 1
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A look back at 2010 reveals 20 celebrities who hogged the limelight for all the wrong reasons – their tax debts to the IRS. Here are 10 of them in ascending order of how much money they owe.
20. Naomi Campbell
Campbell, the well-known British celebrity is a model that has graced the covers of many fashion magazines and appeared in various TV shows. She owes the IRS about $63,000 in delinquent taxes.
19. Grace Jones
Another black celebrity, famous for her square-cut hairstyle and androgynous looks in her movie Conan the Destroyer in 1984. Jones owes the IRS $64,000.
18. Kelly Rowland
Rowland, formerly of the singing group Destiny’s Child, owes the IRS about $100,000 in unpaid taxes.
17. Trick Daddy
The rapper whose real name is Maurice Young had his home in Miami foreclosed in May last year and sold in October. Young owes the IRS $157,000
16. Janice Dickenson
Dickenson was a famous supermodel in the ‘70s and even today does appearances in popular TV shows like America’s Next Top Model and Get Me Out Of Here! plus her own reality show owes $200,000 to the IRS.
15. Young Buck
The rapper, Young Buck owes about $300,000 in outstanding taxes. Last August, the IRS raided the rapper’s home and confiscated many of his possessions for auction. The planned auction was called off at the eleventh hour when Young Buck filed for bankruptcy protection. The rapper is now suing the Treasury Department.
14. Jaime Pressley
The IRS has filed a lien of just under $400,000 against the actress, one of the stars in the TV sitcom, ‘My Name is Earl’. Pressley’s unpaid taxes arise from her 2008 tax bill.
13. Toni Braxton
Singer Braxton, most well-known for her hit song, ‘Unbreak My Heart’ is delinquent by about $400,000 in taxes. Braxton filed for Chapter 7 bankruptcy protection in September last year, which was her second filing.
12. Val Kilmer
Kilmer was slapped with a lien on his ranch in New Mexico because he owes the IRS almost $500,000. The star of ‘Batman Forever’ had an earlier lien against him for $538,000 in 2009 which he has fully settled.
11. Pamela Anderson
The former Baywatch star owes the IRS some $700,000 in taxes. Her financial situation might explain why Anderson jumped at the chance to do Dancing with the Stars this year.
10. Xzibit
Another rapper who owes the IRS is Xzibit, whose outstanding tax bill comes up to $1 million. Most of Xzibit’s tax problems arise from the cancellation of Pimp My Ride by MTV in 2007.
Re: Celebrity and Not So Celebrity Tax Protesters and Evaders
The following is a delightful read and could well apply to a number of MLM heavy hitters and MLMs with charities attached to them.
Tax Evasion: Encyclopedia of Everyday Law
Background
The law does not require taxpayers to arrange their finances in order to maximize their taxes. All taxpayers are entitled to take all lawful steps that apply to their individual situations in order to minimize their tax liabilities. For example, it is lawful to take tax deductions that are available, and a taxpayer may avoid taxes on a certain amount of income by making charitable contributions.
Contrasted with legal efforts to minimize tax liabilities, TAX EVASION is a crime. Tax evasion typically involves failing to report income, or improperly claiming deductions that are not authorized. Some of the most common forms of tax evasion include the following:
- Failing to report the cash income
- Taking unauthorized deductions for personal expenses on a business's TAX RETURN
- Falsely claiming charitable deductions—or inflating the amount of charitable deductions—when there have in fact been none or there have been significantly less than claimed
- Overestimating the value of property donated to charity
- Filing a false tax return, improperly omitting property and knowingly and significantly underreporting the value of an estate
According to section 7201 of the Internal Revenue Code (IRC), it is a federal crime for anyone to willfully attempt to evade or defeat the payment of federal income taxes. A taxpayer can be found guilty of that offense when all of the following facts are proved beyond a reasonable doubt:- The DEFENDANT owed substantial INCOME TAX in addition to that declared in the defendant's tax return
- The defendant knowingly and willfully attempted to evade or defeat the tax
The prosecution need not show the exact amount of the taxes due, but it must prove that the defendant knowingly and willfully attempted to evade or defeat a substantial portion of the additional tax charged in the INDICTMENT.
In this context, the word "attempt" means that the defendant knew or understood that he had TAXABLE INCOME which he was required by law to report to the Internal Revenue Service (IRS) during the particular tax year or years involved. Nevertheless, the defendant attempted to evade or defeat the tax, or a significant part of the tax on that income, by willfully failing to report all of the income the defendant earned during that year.
The Criminal Investigation Division
During an AUDIT, if an IRS revenue agent suspects FRAUD, he can impose penalties himself, or he can refer the case to the Criminal Investigation Division (CID). The CID is part of the enforcement mechanism for the IRS. It is divided into two parts— General Enforcement (for ordinary taxpayers) and Special Enforcement (for unions, organized crime, and cases involving drugs).
The CID has broad powers. In fact, a taxpayer may not even know the CID is investigating him until the taxpayer is formally charged. The CID takes its job very seriously and conducts extremely thorough investigations. In pursuit of EVIDENCE, CID agents may contact a taxpayer's friends, employer, co-workers, neighbors, and bankers, and spouse. There are CID offices throughout the United States. CID agents are federal investigators who have been trained in law enforcement techniques. Most CID agents are also accountants, and many have earned their CPA.
The CID may monitor mail and may apply for a court order for a phone tap. For example, In October, 2000, prompted by the IRS, the U. S. District Court ordered American Express and MasterCard to provide credit and DEBIT card information pertaining to U. S. taxpayers involving banks in Antigua, the Bahamas, and the Cayman Islands for the 1998 and 1999 tax years. The IRS has estimated that some $70 million in annual taxes is lost through offshore tax evasion activities. The banks of Antigua, the Bahamas, and the Cayman Islands are favorite locations in which to conceal revenue from the IRS.
If taxpayers fail to report transactions and pay taxes on those transactions, they could be guilty of tax fraud, tax evasion, and MONEY LAUNDERING under U. S. law. U. S. citizens must inform the IRS whether they have earned interest on an account deposited in a foreign bank on Form 1040, Schedule B. If they do, then they must complete TD F90-221 if the aggregate amount held in all foreign accounts exceeds $10,000 at any time during the tax year. Additionally, currency transactions involving more than $10,000 must be reported on Form 4789, and international transportation of currency or monetary instruments (such as bearer BONDS) must be reported on Form 4790. By focusing on the records of U. S. credit card companies, the IRS has found an effective means to investigate offshore tax havens. Thus, many U. S. tax evaders have cause to be uneasy about their offshore activities.
Because of the many resources it takes to conduct a CID investigation, only a very small percentage of taxpayers or tax evaders are investigated by the CID. The IRS will use the CID only when it has strong implications of serious wrongdoing. Even in these cases, the CID will recommend prosecution only if it has built an airtight case against the suspect.
The CID will usually PROSECUTE cases it determines are very strong. On the other hand, if the case may generate a lot of publicity, the CID may decide to prosecute anyway. The CID and IRS view high publicity prosecutions against high profile people as being a major deterrent for others contemplating committing a tax crime. The CID also considers the amount of money involved in a tax crime when deciding whether to prosecute a case. The average amount of money owed in most criminal tax cases exceeds $70,000. Once the decision to prosecute has been made by officials in the CID, and the JUSTICE DEPARTMENT accepts the case, the chances of obtaining a CONVICTION are about 80 percent. About half of those convicted will be incarcerated, irrespective of any prior criminal record in their past.
Tax Evasion, Tax Fraud, And Other Tax Crimes
When the CID completes an investigation and recommends that a taxpayer be prosecuted for a tax crime, IRS lawyers will conduct at least two stages of before there is final approval to proceed with a prosecution:- After the IRS decides to prosecute, it forwards the case to the United States Department of Justice Tax Division in Washington, D. C. Federal prosecutors with special training in prosecuting criminal tax violations review the case and determine whether or not to authorize prosecution.
- If the Department of Justice Tax Division in Washington approves prosecution, the case is sent to U. S. attorney's office located near the suspect. It is instructed to prepare indictments and to prosecute the individual or individuals for the alleged offenses.
The Tax Division's principal function is to provide legal advice for its main client, the IRS. The Division handles almost all civil LITIGATION arising under the internal revenue laws except for those cases that are docketed in the U. S. Tax Court. The Division also enforces the criminal tax laws by supervising or directly handling all criminal tax cases.
In tax crime cases, the prosecution approval process can work to a suspected taxpayer's advantage. The process allows several opportunities to derail a federal criminal case before it ever gets presented to a GRAND JURY. Assuming a taxpayer is aware that a case is being prepared against him, his lawyer will have the opportunity to confer with the government's lawyers and try to convince them not to prosecute his client. If the government has a strong case against the suspected taxpayer, it is unlikely that the IRS can be dissuaded from pursuing the case. However, if the case involves mere misunderstandings that can be explained and the IRS can be convinced that there really was no criminal conduct, the taxpayer may be able to convince the government to decline prosecution prior to grand jury.
In a tax crime case, a defendant is well advised to hire a lawyer who is experienced in federal criminal matters and who also has significant experience in federal criminal tax cases. If a defendant in a tax crime case cannot find a lawyer with this combination of training and experience, the defendant may want to consider hiring a former CID agent to help with the defense. In short, it is sound policy to have both federal criminal defense and tax crime experience on the defense team.
Re: Celebrity and Not So Celebrity Tax Protesters and Evaders
Tax Fraud Prosecution
After the (CID) has conducted an investigation and has recommended prosecution to the Justice Department, there are three crimes with which an individual may be charged:
- Tax evasion: This is an intentional violation of tax laws. It is a broad category, encompassing any cheating of the government in taxes. Tax evasion is a FELONY and a very serious crime. A conviction for tax evasion can carry with it up to a five-year prison sentence and/or fines up to $100,000.
- Filing a false return: Prosecution for this crime is appropriate when a taxpayer has provided the government with false or misleading information on the taxpayer's tax return. In such cases, the government does not have to prove the taxpayer intended to evade tax laws. Rather, it merely must prove that the taxpayer filed a false return. Filing a false return is a felony. Punishment for this crime can consist of up to three years in prison and/or up to $100,000 in fines.
- Not filing a tax return at all: Failing to file a tax return is the least serious of the three tax crimes. It is a MISDEMEANOR. The consequences for being found guilty is a maximum of 1 year in prison and/or fines totaling up to $25,000 for each year a taxpayer failed to file.
A taxpayer may be arrested once the taxpayer has been charged with one of these three crimes. If so, the taxpayer may be required to post BAIL or may be released on his or her own recognizance. Once charged, it is imperative that the ACCUSED taxpayer retain a tax attorney as soon as possible. The lawyer will need time to study the client's case and formulate a defense. Taxpayers need to keep in mind that the IRS has already completed their investigation and has most likely built a strong case against the accused taxpayer.
Failing to File Returns
The vast majority of taxpayers do file their tax returns with the IRS every year. However, according to some estimates, about three percent of taxpayers do not file tax returns at all. If a taxpayer does not owe any taxes, the penalties are not severe. But failing to file a tax return in years where one does owe taxes is a crime. The penalties can be quite severe. For example, for each year a taxpayer fails to file a return, the IRS can fine that taxpayer up to $25,000, or the taxpayer can be sentenced to one year in prison. And this is just for being negligent. If a taxpayer does not file a return in an effort to evade taxes, the IRS can pursue felony charges, including a fine up to $100,000 or a maximum of 5 years in jail. While INCARCERATION is rare, the threat is real and should deter those considering evading taxes.
It is wise to file a return even in cases where a taxpayer may not have enough resources to pay the entire tax bill. The IRS will work out a payment plan with taxpayers in these cases. There is a six-year STATUTE OF LIMITATIONS for filing criminal charges based on failing to file a tax return, but there is no STATUTE of limitations on how long the IRS can seek taxpayers and demand payment or taxes owed on non-filed returns.
The IRS may penalize taxpayers for filing tax returns late. Depending on the circumstances, there can be criminal or civil trials. At the very least, the IRS may withhold refunds to the taxpayer. If the taxpayer actually owes taxes from a late return, the IRS can levy a late filing PENALTY of 5 percent per late month to a maximum of 25 percent. Additionally, the IRS may impose a = percent to 1 percent late payment penalty to the late filing penalty. In the meantime, interest is accumulating on the debt to the IRS. Thus, it is in taxpayers' best interests to file late returns before they are contacted by the IRS.
The IRS usually does not pursue criminal charges against taxpayers who file of their own volition before the IRS has contacted them. The IRS also tends to be more sympathetic in collecting taxes from taxpayers who volunteer their late returns than taxpayers the IRS had to investigate and "catch." If the IRS identifies an errant taxpayer before the taxpayer has a chance to file a late return, the manner in which they contact the taxpayer is an indication of how seriously they may treat the particular case. The IRS uses four ways to notify taxpayers of fraud or other criminal tax behavior: - Most non-filers receive a non-threatening written request from the IRS Service Center.
- A letter or personal call from a Taxpayer Service Representative gives taxpayer a deadline for filing (usually 30 days).
- A call or personal visit from a Revenue Agent or Officer gives the taxpayer a deadline by which to file returns directly to the agent. The agent may even offer to assist in preparing the missing returns. Note that if a taxpayer refuses to file, the IRS can legally prepare a return, which is never in a taxpayer's best interest.
- The worst way to be notified is by a visit by a Special Agent in which the taxpayer is informed that he or she has become the subject of a criminal investigation.
Considering all the above, it appears crucial to file one's tax returns within the deadlines. If a taxpayer needs more time to file, the IRS has a fairly simple method to request an extension for time to file. But do not fail to file at all. If one has failed to file returns in the past, it is best to go ahead and file late returns before coming to the attention of the IRS. If one owes taxes from late returns, it is advisable to go ahead and pay the debt as soon as possible, even if one must borrow the amount. It costs more to owe the IRS than it does almost anybody else. If a taxpayer has not filed returns in many years, the taxpayer should not worry about being caught if the taxpayer resumes filing. The IRS computers do not search for such taxpayer information. Besides, the IRS wants to encourage non-filers to start filing again.
Re: Celebrity and Not So Celebrity Tax Protesters and Evaders
This blog is great!
To Avoid Fate Of Wesley Snipes, Skip Tax Protester Arguments - Robert W. Wood - The Tax Lawyer - Forbes
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To Avoid Fate Of Wesley Snipes, Skip Tax Protester Arguments
Mar. 10 2011 - 8:43 am | 168 views | 0 recommendations | 0 comments
By ROBERT W. WOOD
Some people find the term offensive, but “tax protesters” or “tax deniers” generally voice arguments that are so out-there the IRS has a special category. In IRS lingo “frivolous” is about as bad as you can get, just shy of the other “f” word, “fraudulent.” Using these f words can get darned expensive and possibly even involve jail time. Look at Wesley Snipes.
If the IRS finds your argument or tax position frivolous, it can mean a 20% accuracy-related penalty (Internal Revenue Code Section 6662); and a whopping 75% civil fraud penalty (Section 6663). If you take a position deemed frivolous on an amended return asking for money back, you can also be hit with a 20% erroneous claim for refund penalty (Section 6676). Plus, if you file your return late including frivolous positions, the usual penalties for fraudulent failure to timely file an income tax return can be tripled up to another whopping 75% (Section 6651(f)).
It’s not only frivolous tax returns but frivolous other tax forms that trigger penalties. If you argue frivolous tax positions in court, the court can impose a penalty of up to $25,000 if it concludes that: 1. your position is frivolous; or 2. you instituted a proceeding primarily for delay; or 3. you unreasonably failed to pursue your administrative remedies (that is, went to court without going through all IRS appeals procedures first).
Just in time to make you think before you file your tax return the IRS has released IR-2011-23 updating The Truth about Frivolous Tax Arguments. Here’s the skinny:
Arguments to Avoid:
- Our Federal Income Tax System is Voluntary. This is fundamental stuff and is self-explanatory.
- Definitional Arguments Based on the Meaning of “Taxable Income” and “Gross Income.” It’s hard to summarize all of these, but the common thread is offbeat definitions. For example, don’t argue that wages, tips, and other compensation received for personal services are not income. Also avoid saying that Federal Reserve Notes are not income, or that only foreign-source income is taxable, making your domestic income exempt. This has variations, but this is the one that got Wesley Snipes in trouble.
- Definitional Arguments About Terms in the Internal Revenue Code. These are creative, but, tough to sell. Avoid arguing that: a taxpayer is not a “citizen” of the United States and thus not subject to the federal income tax laws. Avoid claiming that the “United States” consists only of the District of Columbia, federal territories, and federal enclaves. Don’t argue that the only “employees” subject to federal income tax are employees of the federal government.
- Steer Clear of Constitutional Amendment Claims. Give these a miss too. There are many based on the First, Fifth, Thirteenth and Sixteenth Amendments to our Constitution. They include such “nice try” claims as: Taxpayers can refuse to pay income taxes on religious or moral grounds by invoking the First Amendment; Federal income taxes constitute a “taking” of property without due process of law; and compelled compliance with the federal income tax laws is servitude violating the Thirteenth Amendment.
- Other “Fictional” Legal Theories. The IRS calls these fictional and it’s easy to see why. This group includes such also-rans as: the IRS is not an agency of the United States; and taxpayers are not required to file a federal income tax return because the instructions to Form 1040 and tax regulations don’t display an OMB control number as required by the Paperwork Reduction Act. Also avoid claiming you’re a church, and don’t buy in to “untaxing” trusts or other deals that sound, well, like infomercials.
Re: Celebrity and Not So Celebrity Tax Protesters and Evaders
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The Tax Lawyer
Ten Tax Protester Claims To Avoid
Robert W. Wood, 02.19.10, 03:29 PM EST
The IRS calls them ''frivolous'' arguments. Make one and you could get hit with big civil penalties and even criminal charges.
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The news coverage of Andrew Joseph Stack, the software engineer who crashed his private plane into an Internal Revenue Service office building in Austin, refers to him as a "tax protester." But don't expect the IRS to call him that.
In 1998 Congress prohibited the IRS from labeling individuals "illegal tax protesters" and ordered it to purge the "protester" code from the computer files of 57,000 Americans. But lawmakers didn't stop the IRS or the courts from imposing stiff penalties on those who make traditional protest arguments or take other positions that the IRS deems to be "frivolous."
In fact, while there are plenty of negative things you can be called in the tax world--for example "aggressive" or "delinquent"--one of the worst to be called is "frivolous." In IRS lingo it's about as bad as you can get, just shy of the other "f" word, "fraudulent."
In the tax world, frivolity can be darned expensive. In general, if the IRS finds your argument or tax position to be frivolous, it can mean a 20% accuracy-related penalty (under Internal Revenue Code section 6662); and a whopping 75% civil fraud penalty (section 6663). If you take a position deemed frivolous on an amended return asking for money back, you can also be hit with a 20% erroneous claim for refund penalty (section 6676). On top of all this, if you file your return late and it includes frivolous positions, the usual penalties for fraudulent failure to timely file an income tax return can be tripled up to another whopping 75% (section 6651(f)).
Moreover, these days it's not only frivolous tax returns that trigger penalties but frivolous other tax forms, too. Under section 6702, there's a $5,000 penalty for frivolous tax returns and you can be separately penalized for sending in even seemingly innocuous tax forms throughout the year.
Court positions are affected as well. If you argue frivolous tax positions in court, the court can impose a penalty of up to $25,000 if it concludes that: 1) your position is frivolous, or 2) you instituted a proceeding primarily for delay, or 3) you unreasonably failed to pursue your administrative remedies. (In other words, you went to court without going through all IRS appeals procedures first.)
In the law's eyes, even worse than taking a frivolous tax position is encouraging others to do so. That can bring a whole raft of additional penalties. Promoters can include some accountants, tax lawyers, and (obviously) people who organize tax protester movements. Fortunately, there's not too much of this, but the IRS takes a very dim view of it when it does occur and can even bring criminal charges. (Note that the Department of Justice doesn't face restrictions on calling people "tax protesters," although it has also labeled them "tax defiers.")
How does a normal taxpayer know what is frivolous? The IRS publishes its own list of frivolous positions, but here are 10 things you should know about frivolous tax positions:
1. Don't argue our tax system is voluntary.
Yes, our tax system mostly involves "self-assessment," meaning that you fill out your own tax return (or pay someone to do it) and you send it in (as opposed to having all your taxes paid by withholding). Still, that doesn't mean taxes are voluntary in the traditional sense. This argument, both for filing returns and for paying tax, always fails. Don't try it.
2.You can't take the fifth.
Several no-go arguments are based on the Fifth Amendment to the Constitution. Forget arguing that federal income taxes constitute a "taking" of property without due process of law. Plus, you can't argue that you do not have to file returns or provide financial information because of the protection against self-incrimination found in the Fifth Amendment.
3.Don't claim Federal Reserve Notes (or wages or tips either!) aren't taxable "income"
There are variations of this flaky argument, but it usually starts with the notion that your income isn't really income, and that U.S. cash notes can't be taxable. The cash you carry in your wallet may be labeled "Federal Reserve Notes," not money, but get over it. Plus, don't try to argue that pay for services can't be taxed. Wages, tips and other compensation received for personal services are taxed just like everything else.
4.Forget definitional arguments.
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Just about every form of flaky definitional argument against taxes has failed. For example, don't claim that taxpayers are not U.S. Citizens, or that even if they are, they are not taxable persons. Wrong! Also in the no-go category are claims that the U.S. consists only of the District of Columbia, federal territories, and federal enclaves. Also don't bother arguing that the only "employees" subject to federal income tax are employees of the federal government. All of these positions are frivolous.
5.Don't fall for the foreign vs. domestic income line.
All income is taxable here, wherever you earn it. So forget arguing that only foreign-source income is taxable, making your domestic income exempt. There is a convoluted argument that foreign income is different, but don't bother. This has variations, but this is the one that got actor Wesley Snipes in trouble and facing a three-year prison sentence. (He's now appealing his conviction on three misdemeanor tax fraud counts.)
6.The First Amendment won't help you in a tax case.
The First Amendment to the U.S. Constitution protects freedom of speech and religion. But don't try to connect those freedoms to taxes. If you argue that you can refuse to pay income taxes on religious or moral grounds by invoking the First Amendment, you'll lose.
7. The Thirteenth Amendment is no help either.
You can forget arguing the Thirteenth Amendment, too. Some have argued that compelled compliance with the federal income tax laws constitutes servitude in violation of the Thirteenth Amendment, adopted in 1865 to abolish slavery. Not true. Speaking of slavery, African Americans can forget claiming a special tax credit as reparations for slavery and other oppressive treatment. That argument too is frivolous.
8. Ditto the Sixteenth Amendment.
Next in the frivolous constitutional hit parade is the Sixteenth Amendment, but it too will get you labeled as frivolous. First, you can give up on arguing that this amendment was never properly ratified, making the federal income tax unconstitutional. Second, don't argue that the Sixteenth Amendment does not authorize a direct non-apportioned federal income tax on U.S. citizens. These arguments will fail.
9. The paperwork reduction argument has been shredded.
It sounds a bit like a Monty Python routine or something out of George Orwell's 1984, but also do not waste time (as some tax protesters do) arguing about the little OMB control numbers or Paperwork Reduction Act Notices appearing on most federal forms. The courts have struck down arguments that taxpayers are not required to file federal income tax returns because the instructions and regulations associated with IRS Form 1040 do not display an OMB control number as required by the Paperwork Reduction Act.
10. Avoid entity arguments. You are not a church.
There are some grassroots movements claiming you can legally avoid paying taxes with certain entities. Avoid all of this. One promotes a type of "untaxing" package or trust that suggests you can legally and permanently avoid the obligation to file federal income tax returns and pay federal income taxes. No way. Another bizarre idea--this one with a more religious flavor--says you can form a "corporation sole" (sometimes called a "ministerial trust") for yourself (a type of entity usually reserved for the head of a church), and that it can cloak you from paying federal income taxes. Forget it. Stack, the Austin pilot, appears to have gotten involved originally in a "home church" scheme.)
If you encounter any of the claims above--or anything else that sounds too good to be true--it probably is. Check it out with a qualified tax lawyer or accountant, or check with the IRS. The bottom line is that if someone tells you for some reason you don't need to pay taxes, you could find yourself labeled as frivolous and hit with a possibly ruinous bill for back taxes, interest and stiff civil penalties.
Robert W. Wood is a tax lawyer with a nationwide practice. The author of more than 30 books including Taxation of Damage Awards & Settlement Payments (4th Ed., 2009), he can be reached at wood@woodporter.com. This discussion is not intended as legal advice, and cannot be relied upon for any purpose without the services of a qualified professional.
Re: Celebrity and Not So Celebrity Tax Protesters and Evaders
Rapper Ja Rule Sentenced to Over Two Years in Jail in Tax Returns Case
Published July 18, 2011
| Associated Press
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Reuters
June 8: Rapper Ja Rule, whose real name is Jeffrey Atkins, is handcuffed in Manhattan Supreme Court, where he received a two-year jail sentence after pleading guilty to gun possession charges.
NEWARK, N.J. – Rapper and actor Ja Rule has been sentenced in New Jersey to more than two years in prison for failing to file income tax returns.
The platinum-selling rapper, whose real name is Jeffrey Atkins, turned to look at his wife after a judge read the sentence in a Newark federal courtroom Monday.
He admitted in March that he failed to pay taxes on more than $3 million that he earned between 2004 and 2006 while he lived in Saddle River.
Read more: Rapper Ja Rule Sentenced to Over Two Years in Jail in Tax Returns Case - FoxNews.com
