Westley Snipes Accused of IRS Violations

[firefox]

URL: http://www.thesmokinggun.com/archive/1017061snipes1.html


OCTOBER 17--Wesley Snipes has been indicted on federal criminal charges for his role in a bizarre tax avoidance scheme that allegedly included him seeking $12 million in fraudulent refunds and failing to file six years of tax returns. In an eight-count indictment unsealed today, Snipes and two others are charged with knowingly attempting to defraud the government by claiming that his substantial income was somehow immune to taxation. A copy of the indictment, filed in U.S. District Court in Ocala, Florida, can be found below. According to the indictment, Snipes, 44, conspired with Eddie Ray Kahn and former certified public accountant Douglas Rosile in the tax scam. Kahn is the founder of a Florida company (now known as Guiding Light of God Ministries) that, investigators allege, "promoted and sold fraudulent tax schemes" to clients like Snipes. Kahn has claimed that U.S. citizens could only be taxed on income earned from certain foreign-based activities (and not on money made in this country). This claim--known as the "861 argument" for the section of the tax code to which it refers--has been flatly rejected by the Internal Revenue Service.

The "861 Evidence" is legitimate, and the income tax actually isn't, but my suggestion is to never pay them in the first place. Not filing was not his issue. The allegations hinge mostly on his allegedly false claims.

[Labrocca]

I was waiting for you to post this. :)

I will be following this story closely.

[Flea_Bit_Monkey]

40 years, if he didn't pull his share he deserves them.

[Labrocca]

40 years, if he didn't pull his share he deserves them.


Paying income tax normally means you are pulling someone elses share. Doubtful Snipes uses 24 million in services from the government.

[firefox]

Very true. I don't see how it would be possible for ANYONE to, even if they were waited on hand and foot by mommy government 24/7. I try to limit my alleged "mandatory donations" (http://libertarianactivism.com/blog/2006/10/us-tax-code-favorable-to-home-based.html) as much as legally possible. First Willie, now Snipes. Who's next?

BTW, Monkey, I don't think you're one to talk. According to the IRS's own numbers, at least 50% of filers under report. This means that you're likely one of them. I think you'd change your tune if the men with guns came for you or one of your loved ones. This is why government doesn't work. If you decide you don't want a product or service from a private company or non profit, you just don't request it.

On the other hand, government agencies make you pay for everything, whether you like it or not. If you don't, they will probably not notice for a very long time. Then you will start getting nasty threat letters. Then men with guns will try to take you away for questioning and/or imprisonment. If you try to assert your private property rights and attempt to defend yourself, they will, in all liklihood, KILL YOU. What kind of sick and twisted scheme is this? This is organized crime by a different name.

[Waffletush]

BTW, Monkey, I don't think you're one to talk. According to the IRS's own numbers, at least 50% of filers under report. This means that you're likely one of them. I think you'd change your tune if the men with guns came for you or one of your loved ones. This is why government doesn't work. If you decide you don't want a product or service from a private company or non profit, you just don't request it.

50% also means it is likely he ISN'T one of them.

I don't know of a single case where someone claimed '861' and was acquitted. Every case I have seen where someone claims this they were found guilty.

I have to ask though Firefox, as you are against paying income tax, or taxes of any kind, how do you get to work? Do you drive on a road? Walk on a side walk? Or go by foot across only private land?

[firefox]

Litigation: Yes. A good book to read on this and other such topics is "Adventures in Legal Land" by Marc Stephens. For an informative video about this topic (flash), see http://www.3rdear.com/861info/. In multiple cases, SCOTUS has said that the income tax, at most, applies to earnings from foreign companies and from US residents earning significant income from abroad. There are many more legal issues here, but I don't feel like splitting hairs when there is so much academic work on the topic already.

As for the beaten down "roads" issue, yes, I do use them. No, I don't think the state is the best entity to maintain such things, and No, the income tax, as with Social Security and other federal regulatory taxes are NOT used to construct roads, or do anything else besides pay interest on the national debt.

What about you?

[Waffletush]

How do you think the government finances those roads? The cost of the roads does go towards the national debt. And as you said, income tax is used to pay off the debt, which would include the cost of the roads you drvie on. Unless I am missing something here...

If you do not think the state is the best option for maintaing roads, what do you propose? Answer: private organizations. And how are they going to get paid, who is going to pay them? Answer: the state. And how will the state get the funds to pay them? Answer: taxes

[firefox]

This is only the case because governments have used force and fraud to convince people that this is the way things quote "have to be". Tolls are one way to finance such projects (See your local turnpike/expressway [most are not *really* private, but that's another story]), but I'm sure it could be done other ways, perhaps through paid advertising, contracts with businesses connected to customers by the roadway, etc. If it was your road, how would you do it?

[Waffletush]

Tolls wouldn't work becasue the company would have to charge an exhorbitant fee just to stay afloat.Â*Â*Same with advertising, althought an advertiser could set their billboard up juuuuuuust outside the property of the raod, and not have to pay theri fee.Â*Â*All I am getting at here is private roadways (on a mass scale like interstates, not me paying my driveway) don't work.Â*Â*I honestly know of no such road system anywhere in the world.

But to tie this back to the orginal discussion, income taxes do pay for our roads, in that they pay off the debt associated with building such roads.

On a somewhat related note, I thought Libertarians were FOR following the Constitution....?Â*Â*Every Libertarian I know seems to always cite that all guns laws are illegal becasue they violate the 2nd Amendment.Â*Â*How is income tax any different?Â*Â*The 16th Amendment allows for income tax, so by default Libertarians must agree that not paying income taxes IS illegal, as it is in direct violation of a Constitutional Amendment.Â*Â*Or have Libertarians decided they can pick and choose what Amendments are 'Constitutional' and which ones aren't?

[Anti-Racism]

Large modern governments need money. It would be more productive to slash their unproductive programs than complain about paying taxes :)

On Snipes: innocent until proven guilty.

[cs0564]

Ironically though the person who helped him with his taxes I undestand is named Con. Consequence?