Get Home Business Business All NYT - freedom-school.com · MOST POPULAR - BUSINESS Go to Complete...
Transcript of Get Home Business Business All NYT - freedom-school.com · MOST POPULAR - BUSINESS Go to Complete...
Wesley Snipes Cleared of Serious Tax Charges - New York Times http://www.nytimes.com/2008/02/02/business/02tax.html?_r=1&hp&ore...
1 of 3 2/3/2008 11:46 AM
SIGN IN TO E-MAILOR SAVE THIS
SINGLE PAGE
REPRINTS
SHARE
RelatedLede Blog: In His Words - Wesley Snipes on Not Paying Taxes
Full Text of Anti-Tax Statement(pdf)
Text of Indictment
Wesley Snipes Cleared of Serious Tax ChargesBy DAVID CAY JOHNSTONPublished: February 2, 2008
OCALA, Fla. — A federal jury returned a mixed verdict against the
actor Wesley Snipes on Friday, acquitting him of the most serious tax
charges he faced, but convicting him on three of six lesser charges. The
case was the most prominent tax prosecution since the billionaire
hotelier Leona Helmsley was convicted of tax fraud in 1989.
Mr. Snipes, who has built a worldwide following acting in
films like the “Blade” vampire trilogy, must pay up to $17
million in back taxes plus penalties and interest.
He had become an unlikely public face for the tax denier
movement, whose members maintain that Americans are
not obligated to pay income taxes and that the government
extracts taxes from its citizens illegally.
The jury found Mr. Snipes not guilty on two felony charges of fraud and conspiracy. He
was also acquitted on three misdemeanor charges of failing to file tax returns or to pay
taxes from 2002 to 2004. But the jury found him guilty of failing to file returns or pay
taxes from 1999 through 2001. He faces up to three years in prison. If convicted of the
felonies, he would have faced up to 16 years.
JJ MacNab, a Maryland insurance analyst who attended the trial and is writing a book
about tax deniers, said “the verdict shows that promoters face serious jail time” but clients
who follow their advice will face a lesser but still serious risk of imprisonment.
Mr. Snipes’s two co-defendants — Eddie Ray Kahn, a promoter of tax denial, and Douglas
Rosile, a former accountant — were convicted on the fraud and conspiracy charges.
It was the fourth major case in which the Justice Department failed to win convictions in
cases against prominent tax deniers. The verdict drew whoops of joy outside the federal
courthouse here from fellow tax deniers who immediately proclaimed it another victory
that would draw more people to their cause.
The courts have declared the tax denier arguments are frivolous. Even Mr. Snipes’s
Next Article in Business (2 of
MOST POPULAR - BUSINESS
Go to Complete List »
China’s Inflation Hits Am1.
Exxon Mobil Profit Sets R2.
U.S. Economy Unexpecte3.
Wesley Snipes Is Acquitte4.
Small Law Firm’s Big Rol5.
Microsoft Bids $44.6 Bill6.
Starbucks to Close Stores7.
Age of Riches : At Elite PEndowments
8.
Financial Ties Are Cited a9.
Lilly Considers $1 Billion10.
Business All NYTBusinessWORLD U.S. N.Y. / REGION BUSINESS TECHNOLOGY SCIENCE HEALTH SPORTS OPINION ARTS STYLE TRAVEL J
MEDIA & ADVERTISING WORLD BUSINESS SMALL BUSINESS YOUR MONEY DEALBOOK MARKETS RESEARCH MUTUAL FUNDS
BLOGGEDE-MAILED
HOME PAGE MY TIMES TODAY'S PAPER VIDEO MOST POPULAR TIMES TOPICS Get Home
Sign up for finance news, sent [email protected] Change E-mail Address | Privacy
Get DealBook by E-Mail
Wesley Snipes Cleared of Serious Tax Charges - New York Times http://www.nytimes.com/2008/02/02/business/02tax.html?_r=1&hp&ore...
2 of 3 2/3/2008 11:46 AM
Next Article in Business (2 of 22) »
defense lawyers, who called the denier claims “dead wrong” in their closing arguments to
the jury, reiterated that statement after the verdict.
Mr. Snipes will pay all of his income taxes plus penalties and interest, said Robert E.
Barnes and Robert G. Bernhoft, who defended him.
“He will make full amends and pay everything,” Mr. Barnes said.
Mr. Bernhoft said Congress should repeal criminal tax laws and treat tax evasion as a civil
matter.
Robert E. O’Neill, the United States attorney here, said current law “is entirely subjective”
on criminal intent because juries must decide whether a defendant “sincerely believes” he
was not required to pay taxes.
The Justice Department has told Congress there is no need to revise the tax laws on intent.
But when Mr. O’Neill was asked whether the laws should be changed, he said,
“Absolutely.”
The defense, prosecution and Ms. MacNab all said the verdict showed that the jury
recognized the promoters as criminals and saw Mr. Snipes as their victim. They also
agreed that the reason the jury acquitted Mr. Snipes of not filing his tax returns in 2002
through 2004 was because he had been told he was the target of a criminal investigation
and jurors believed that he was exercising his right to remain silent. The jury convicted
him of failing to file his tax returns before he knew was a suspect.
Even as Congress has reduced income tax rates, the tax denier movement has spread,
fueled by high payroll taxes, political attacks on the Internal Revenue Service and anger
among people who have not benefited from strong overall economic growth.
Instead of prosecuting all offenders, the Justice Department brings cases against
well-known individuals, hoping that widespread news coverage will encourage
compliance, a policy known as general deterrence. The Snipes prosecution, like the three
earlier cases that resulted in full acquittals, appears to have backfired.
The Justice Department has for months declined requests to provide an official who would
discuss its tax prosecution policies on the record.
Tax deniers assert variously that the tax laws are valid but do not apply to them, that no
law makes anyone liable for taxes and that the government tricks people into paying.
Promoters of tax denial claim that people can legally stop paying income taxes by
executing certain documents, or by not signing others, like tax returns. Courts have
rejected all these arguments.
NEXT PAGE »
Donate to the Neediest Cases today!
Ads by Google what's this?
Full coverage of theAlso in Movies:
Photos of the nomineesWho should have been nominWhich movies will win this yea
ADVERTISEMENTS
Gershwin RBuy Now
Tips to run a successfuAlso in Business:
Getting paid, one way or anotHow to promote your businessFind new ways of custom-blen
All the news that's fit to personali
1 2
Wesley Snipes Cleared of Serious Tax Charges - New York Times http://www.nytimes.com/2008/02/02/business/02tax.html?_r=1&hp&ore...
3 of 3 2/3/2008 11:46 AM
Taxation Add AlertSnipes, Wesley Add AlertDecisions and Verdicts Add AlertFederal Taxes (US) Add Alert
Related Searches
Assault Family Violence?Experienced Former Prosecutors Knowledgeable, Discreet, Dedicatedwww.HinesRancHolub.com
10 Rules Losing Belly FatI Struggled for Years to Lose Belly Fat, Until I Found These 10 Rules.www.FatLoss4Idiots.com
Jaw Dropping Free VideosBe Afraid, Or Be Amused. Watch Free Instantly!BizarreByFar.com/AmazingVideo
TipsTo find reference information about the words used in this article, double-click on any word, phrase or name. Anew window will open with a dictionary definition or encyclopedia entry.
Past CoverageWesley Snipes To Go on Trial In Tax Case (January 14, 2008)Actor Pleads Not Guilty in Tax Fraud Case (December 9, 2006)No Deal Made With ActorIn Tax Case, Prosecutors Say (November 7, 2006)Arts, Briefly (October 21, 2006)
INSIDE NYTIMES.COM
ART & DESIGN » ESCAPES » ART & DESIGN » OPINION » ARTS »
Artistic Muscle, Flexed for Medicis
Winter, and Not a Ski on the Course.
Cradle for Serious Grooving Latest Twist in Comics:Captain America’s Back
Home World U.S. N.Y. / Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Esta
Copyright 2008 The New York Times Company Privacy Policy Search Corrections RSS First Look Help Contact Us Wor
Business & FinancialServices »
Computer»
Food & Beverage » FranchiseManufactu
Health & Beauty » Miscellane
Professional Services » Retail & SBusinesse
Travel & Real Estate » In partners
Browse Local Business ServicesFind businesses near you on The New York TServices Directory.
Wesley Snipes Cleared of Serious Tax Charges - New York Times http://www.nytimes.com/2008/02/02/business/02tax.html?pagewanted...
1 of 3 2/3/2008 11:47 AM
SINGLE PAGE
REPRINTS
SAVE
SHARE
RelatedLede Blog: In His Words - Wesley Snipes on Not Paying Taxes
Full Text of Anti-Tax Statement(pdf)
Text of Indictment
Wesley Snipes Cleared of Serious Tax ChargesPublished: February 2, 2008
(Page 2 of 2)
Mr. Snipes, 45, was indicted in October 2006 for filing a false claim
for a $7 million refund (of taxes paid in 1997, before he stoped paying
taxes), and conspiracy with his two co-defendants to defraud the
government through that claim, which was not paid.
Since 1986, Mr. Snipes has appeared in
more than 50 films, earning at least $103 million, court
papers showed, including more than $58 million in the
years covered by the indictment, 1999 through 2004.
Mr. Snipes has built a huge following, especially overseas,
with his portrayals of intrepid detectives and fearless
vampire slayers and his occasional comedic roles. In
addition to the “Blade” series, he starred in movies like the action film “Drop Zone,” the
political intrigue “The Art of War,” and, with Sean Connery, the corporate crime thriller
“Rising Sun.”
The defense rested on Monday without calling any witnesses. Mr. Snipes declined to
answer questions outside the courthouse on Friday, where a gaggle of reporters was
surrounded by dozens of fans from this central Florida city.
In closing arguments on Tuesday, lawyers for Mr. Snipes sought to portray him as a
well-intended victim of bad advice by his co-defendants. They called his tax theories
“kooky” and “crazy,” but said acting on these views did not make him a criminal because
he disclosed his actions.
The Supreme Court has ruled that tax deniers can demonstrate the absence of criminal
intent by asserting that they “sincerely believe” that they are not required to pay taxes,
although they cannot escape the levies.
Prosecutors argued that Mr. Snipes showed criminal intent when he sent the government
three bogus checks to pay $14 million in taxes and an amended tax return that was subtly
altered with software to insert the word “no” before “penalty of perjury.”
More Articles in Business »
MOST POPULAR - BUSINESS
Go to Complete List »
Unboxed: Eureka! It Rea1.
Progress Toward Ending 2.
Novelties: An Online Orgthe Dots
3.
A.I.G. Chief Can’t Stop Lo4.
Your Money: If It’s Tuesd5.
Massachusetts Accuses M6.
Wesley Snipes Cleared of7.
China’s Inflation Hits Am8.
Fair Game: Lenders Who9.
First Job Losses in 4 Year10.
Business All NYTBusinessWORLD U.S. N.Y. / REGION BUSINESS TECHNOLOGY SCIENCE HEALTH SPORTS OPINION ARTS STYLE TRAVEL J
MEDIA & ADVERTISING WORLD BUSINESS SMALL BUSINESS YOUR MONEY DEALBOOK MARKETS RESEARCH MUTUAL FUNDS
BLOGGEDE-MAILED
HOME PAGE MY TIMES TODAY'S PAPER VIDEO MOST POPULAR TIMES TOPICS My Account Welcom
Sign up for finance news, sent [email protected] Change E-mail Address | Privacy
Get DealBook by E-Mail
Wesley Snipes Cleared of Serious Tax Charges - New York Times http://www.nytimes.com/2008/02/02/business/02tax.html?pagewanted...
2 of 3 2/3/2008 11:47 AM
More Articles in Business »
Defense lawyers said Mr. Snipes did not file tax returns after his indictment because the
I.R.S., by making him the target of a criminal investigation, “forced” him to exercise his
right to remain silent.
After his indictment, however, Mr. Snipes sent the government a series of rambling letters
describing his tax theories and warning that “pursuit of such a high-profile target will
open the door to your increased collateral risk.”
Mr. O’Neill, the lead prosecutor, called the filings “gibberish” whose purpose was to thwart
law enforcement.
In one 600-page document, Mr. Snipes said he was legally a “nontaxpayer” and the tax
laws did not apply to him because he was not a resident of the District of Columbia, was
not a federal official and was not engaged in any trade or business, all common tax denier
arguments.
Mr. Snipes also complained that the I.R.S. violated his 14th Amendment rights to equal
protection because it would not help him establish what he said was his rightful status as a
legal nontaxpayer.
Mr. Snipes joined the tax denier movement after becoming upset when told that his 1999
income tax would be more than $2 million, Carmen Baker, his former assistant, testified.
A mutual acquaintance introduced Mr. Snipes to one of his co-defendants, Mr. Kahn. Mr.
Kahn operated a Christian ministry, the Guiding Light of God Ministries, and a central
Florida company called the American Rights Litigators that helped tax deniers avoid
paying.
Mr. Kahn, who was imprisoned for tax crimes in 1985 to 1987, fled to Panama after the
2006 indictment. He was extradited to stand trial on the latest charges but refused to
attend the proceedings, remaining in his jail cell, after telling Judge William T. Hodges
that the court had no authority over him.
Mr. Snipes and Mr. Rosile are free on bail.
« PREVIOUS PAGE
Donate to the Neediest Cases today!
Ads by Google what's this?
Church Background ChecksHave Piece Of Mind And Confidence In Your Volunteers And Leaders.www.ChurchVolunteerCentral.com
Cheap Background ChecksSearch multiple engines at once for cheap background checkswww.webcrawler.com
Private InvestigatorsMCS provides private investigators nationwide. Call today!www.expertsatmcs.com
Tips
How are people finAlso in Jobs:
Recruiting through professionAre you paying your employeeFind great candidates on NYT
ADVERTISEMENTS
On the GreBuy Now
All the news that's fit to personali
1 2
Business & FinancialServices »
Computer»
Food & Beverage » FranchiseManufactu
Health & Beauty » Miscellane
Professional Services » Retail & SBusinesse
Travel & Real Estate » In partners
Browse Local Business ServicesFind businesses near you on The New York TServices Directory.
Wesley Snipes Cleared of Serious Tax Charges - New York Times http://www.nytimes.com/2008/02/02/business/02tax.html?pagewanted...
3 of 3 2/3/2008 11:47 AM
Taxation Add AlertSnipes, Wesley Add AlertDecisions and Verdicts Add AlertFederal Taxes (US) Add Alert
Related Searches
To find reference information about the words used in this article, double-click on any word, phrase or name. Anew window will open with a dictionary definition or encyclopedia entry.
Past CoverageWesley Snipes To Go on Trial In Tax Case (January 14, 2008)Actor Pleads Not Guilty in Tax Fraud Case (December 9, 2006)No Deal Made With ActorIn Tax Case, Prosecutors Say (November 7, 2006)Arts, Briefly (October 21, 2006)
INSIDE NYTIMES.COM
ART & DESIGN » OPINION » THE CITY » OPINION » WEEK IN REVIEW »
The Gray Areas of Jasper Johns
Jimmy Carter and James A. Baker III: Voter ID
His City, Lost and Found The Party Animal Either Plays Well or Fights Well
Home World U.S. N.Y. / Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Esta
Copyright 2008 The New York Times Company Privacy Policy Search Corrections RSS First Look Help Contact Us Wor