Yipes For Snipes

Wesley Snipes
           Photo Credit: nicolas genin  Creative Commons Attribution-ShareAlike License

Even though movie star Wesley Snipes spent three years in prison for not filing tax returns, he is now embroiled in another fight with the IRS. Who knows, maybe Mr. Snipes likes life behind bars and this latest skirmish just might land him back on the inside.

The IRS does not care how famous taxpayers are. If they don’t file and they don’t pay, they get to spend time behind bars.

The latest news according to AccountingToday.com is that, “The U.S. Tax Court has rejected Wesley Snipes’ appeal of the IRS’s rejection of his offer in compromise.” The article states that, “Snipes has federal tax liabilities of approximately $23.5 million for tax years 2001-2006, largely as a result of his failure to file tax returns.”

After Snipes was released from prison in 2013, the IRS demanded payment of the $23.5 million. But, Snipes didn’t pay. He did however request an Offer In Compromise (OIC), which is something many taxpayers do when the owe the IRS. And, there was an offer made to pay $842,061. But that wasn’t cutting it with the IRS.

It also appears that Snipes did not present any documentation to prove his assets and financial condition.

These are all things the IRS insists on. Keep that in mind if you owe the IRS back taxes. In Mr. Snipes’ case, we are talking about huge amounts of money. I recognize that most of my clients are not in the same tax stratosphere. But it’s kind of comforting to know that the IRS does not just pick on the under dogs. They go after the big dogs too.

We are coming up on another tax filing season soon. If you are in trouble with the IRS either for failure to file or to pay and need help sorting out your situation before the IRS makes your life a living hell, give us a call. We work helping everyday folks straighten out their IRS troubles.