Friday, April 25, 2008

Being a Celebrity Cuts Both Ways

Sometimes, being a celebrity is not all it's cracked up to be:

Wesley Snipes is prison-bound.

The Blade star, 45, was sentenced Thursday to three years behind bars as his punishment for failing to file his tax returns, U.S. District Judge William Terrell Hodges announced in an Ocala, Fla., courtroom....

The prosecution, seeking to make an example of Snipes, had requested the maximum: three years in prison and a fine of at least $5 million.

"The fact that Snipes was acquitted on two felony charges and convicted 'only' on three misdemeanor counts has been portrayed in the mainstream media as a 'victory' for Snipes," the government said in its sentencing recommendation. "The troubling implication of such coverage for the millions of average citizens who are aware of this case is that the rich and famous Wesley Snipes has 'gotten away with it.' In the end the criminal conduct of Snipes must not be seen in such a light."


There are many average citizens out there who cheat on their taxes, but they are out of the public eye and are not being used as an example for others. Sometimes, being one of the rich and famous results in more penalties, not fewer, when one gets in trouble with the authorities.

36 Comments:

Blogger Unknown said...

Two words: Martha Stewart.

9:49 AM, April 25, 2008  
Blogger Quasimodo said...

Seems harsh for "misdemeanors," especially when compared to SOME sentences for more odious crimes. I don't like using the law to make examples of people unless there is some compelling reason. Being high profile is not a compelling reason. But I guess it plays well with the class envy crowd.

10:06 AM, April 25, 2008  
Blogger Unknown said...

The same thing happened to Martha Stewart.

Really, Your Honor. If you want to send a message, call Western Union.

Lamont

10:14 AM, April 25, 2008  
Anonymous Anonymous said...

One does not mess

with the IRS.


They'll never let anyone prove the IRS is not exactly a legal entity. Overwhelming force must be used, examples must be made.
The people must be reminded, must be made to know, they are powerless against them.

They won't kill you, but all you'll have left is your life when they're done.

Yeah, I don't like 'em.

12:16 PM, April 25, 2008  
Blogger Cham said...

I would assume the movie studios issue some sort of document like a W-2 when they pay actors. That document goes straight to the IRS. If one doesn't even bother to fill out a tax return and sends all their earnings to overseas bank accounts, it's not rocket science for the IRS to catch up. I don't know whether the IRS targeted Mr. Snipes because he was a famous actor or because he was some serious easy pickings for them, a big payday for very little work. He was a text book case of low hanging fruit.

12:18 PM, April 25, 2008  
Blogger Unknown said...

br549 --

I have never had a problem with the IRS. Then, I pay the taxes I owe. When I had neglected to pay one year because of ongoing familial problems, I simply went in and filed a year late. No problems and nothing severe. Trying to duck taxes don't get no sympathy from me. This is especially true if paying them won't put a dent in your necessities.

cham --

Probably a 1099 if anything other than the contract. They "targeted" Snipes because he owed $41M. Not hard to figure out. He is a textbook case of a dumbass who thought he found the golden out, no more.

12:27 PM, April 25, 2008  
Blogger Sloan said...

You can toss Winona Ryder into that mix as well. I was just reading about her 2001 shoplifting incident, in which the court refused to grant her the same plea bargaining arrangements that had been granted in thousands of other similar cases. She didn't go to jail, but it was obvious the prosecutors were out to get her.

Granted, she shouldn't have broken the law, but she shouldn't be used by the legal system to try to make some sort of example of her.

1:04 PM, April 25, 2008  
Blogger Serket said...

I agree that our tax system is screwed up, but I'm glad Snipes is being punished for this.

3:05 PM, April 25, 2008  
Blogger Ed said...

Snipes was not convicted of not paying his taxes. He was convicted of misdemeanor charges of not filing. It had nothing to do with what (or whether) he owed, it had to do with whether he gave his information to a government agency. Therefore, he's probably got a good case for appeal under the Fifth Amendment.

4:08 PM, April 25, 2008  
Anonymous Anonymous said...

I have no problem paying the goose that lays the golden eggs.

I do not, however, like paying more taxes with money that has already been taxed once. If I owe more (who doesn't?) at tax time, I pay that tax with after tax income. Just like you, olig. Maybe you like it, but I believe there must be a more fair way to do it.

6:35 PM, April 25, 2008  
Blogger averagejoesgym said...

Excessive

7:58 AM, April 26, 2008  
Blogger Peter V. Bella said...

"The same thing happened to Martha Stewart."



Wrong. Martha deserved what she got. First, she had been a stock broker in her early years and the rules on insider trading were the same; she should have known better. Had she given back her profit- 40k- she could have avoided all the attendant publicity. Second, she lied to prosecutors and the SEC.

She went to prison for being a greedy billionaire; 40 thousand dollars put her in prison. She could have avoided it all by retruning the profit and just saying oops I made a mistake. But the queen of mean was to greedy and stupid to do that.

8:32 AM, April 26, 2008  
Blogger Unknown said...

br549 --

Snipes was not avoiding double taxation. He was avoiding taxation.

If you owe more at tax time, you're paying with money you didn't pay the taxes on. That check you write will only draw from monies that weren't taxed, avoiding those that were.

Please.

8:38 AM, April 26, 2008  
Anonymous Anonymous said...

olig:

Not talking about Wesley Snipes.

And "please" what? The tax codes are thicker than a NY City phone book.

What you just explained to me above is akin to pulling a slice of bread from the center of the loaf, instead of grabbing one from the end when you open the plastic bag.

It's just way more complicated than it needs to be. Sorry I came across as a dumb ass in something you seem to know so much about. I will try to be smarter in the future - just for you.

9:25 AM, April 26, 2008  
Blogger Unknown said...

br549 --

So, instead of explaining how not paying enough taxes does not leave you with untaxed dollars you make a very strange analogy?

Fine.

11:47 AM, April 26, 2008  
Anonymous Anonymous said...

OK. Fine. Hmmmph.

2:38 PM, April 26, 2008  
Blogger Dave Hardy said...

Gotta wonder about the timing. I once knew a guy who'd been Deputy Ass't Sec. of Treasury for Enforcement.

He said that the news stories about IRS abuses were often planted with the media by IRS! I asked why would an agency make itself look nasty, and he replied, ever notice that the stories usually break just before April 15? The agency is willing to make itself look bad, once a year, in order to get people to pay taxes and scare them out of fudging.

3:15 PM, April 26, 2008  
Blogger Joe said...

Seems to me that part of Snipes' problem is the arrogant way he handled the situation. Had he handled this like a man, instead of a spoiled child who expected favors, a non-jail time plea bargain probably would have been accepted.

5:23 PM, April 26, 2008  
Anonymous Anonymous said...

Here's a simple solution for these mistreated celebrities:

Just follow the law.

Not filing declarations at all and not paying taxes at all for years and years is not going to go over well.

6:58 PM, April 26, 2008  
Blogger Maxine Weiss said...

It isn't about making an example of someone. This has to do with the amount of money that was defrauded. The amount of money in question with Martha Stewart was relatively little, compared with Snipes. The IRS said that millions and millions of dollars went unreported, in Snipes case.

Well, since the "average citizen" doesn't even have millions and millions of dollars in which to cheat with, of course the punishment wouldn't be as severe as Snipes.

7:22 PM, April 26, 2008  
Blogger Sid said...

As to the simple matter of Wesley Snipes' sentence, I would believe the judge was not sending a message so much as found him an unsympathetic defendant. Whatever. He broke the law. Worse yet, he got caught.

Even worse, br549 and oligonicella may not be friends anymore. Dr. Helen, please, for the sake of our e-community, can you talk some sense to these two. I am begging you. br549 has such a wonderful grounded common man sensibility. oligonicella is studied contrast with an almost stunning insight. They both share a dry sense of humor.

Kids, let's work this out. I am begging you.

Sincerely,

Sid

7:56 PM, April 26, 2008  
Anonymous Anonymous said...

I understand that this sentence was at the high end of the sentencing guidelines, but it was within the sentencing guidelines.

Very understandable, because it involved far more money than us mere mortals usually have.

So I'm not going to cry a tear for this celebrity, just as I didn't for Martha Stewart. If you don't want to be used as an example, within the sentencing guidelines, don't commit the crime.

9:47 PM, April 26, 2008  
Blogger tomcal said...

I have not bothered to study the legal theories under which people like Snipes and their attornies seek to prove that the IRS has no legal authority to tax. But the case law is indisputable. If you don't pay your taxes you suffer penalties.

I think that sometimes it's better to admit you made a little money and pay your taxes. That's what I do. The concequences of doing otherwise are a little too onorous for me.

On the other hand, if someone wants to do battle for me and prove that I don't have to pay, I will be very happy to rely on the precedent once it is established by case law, appeals, and subsequent failure of new legislation to withstand judicial scrutiny.

I am afraid that taxes are here to stay.

2:39 AM, April 27, 2008  
Blogger Unknown said...

Sid --

Uh, don't go overboard please. While I might see BR's take on double taxation as in error, in no way does that actually influence my thoughts about him. I very much appreciate the man's thoughts and contributions.

By the way, thanks for the both of us.

8:39 AM, April 27, 2008  
Anonymous Anonymous said...

Agreed.

I think olig is a very bright guy, and I like to read his posts.

You spoke of both of us possessing a dry humor. Perhaps even off the beaten path. Well, you saw it in action, that's all.

And he does know much more than me about taxes and taxation. Damnit.

9:40 AM, April 27, 2008  
Blogger Helen said...

Sid,

I don't see that I am needed here. Most regular commenters on this blog are decent--but passionate--people. All of us will disagree with others at some point--accepting that gracefully is key.

11:13 AM, April 27, 2008  
Blogger Sloan said...

*sniff*

I love all you wacky bastidges.

Group hug!!

2:13 PM, April 27, 2008  
Blogger Sid said...

In the words of Doc Holliday, "now we can be friends again."

3:13 PM, April 27, 2008  
Blogger Ed said...

I want to re-iterate, Snipes was not convicted of not paying his taxes. He was convicted of not filing paperwork with the IRS. The fifth amendment to the US constitution says that one cannot be forced to incriminate oneself; it's the first thing that is said by a police officer when reading the Miranda rights: "you have the right to remain silent". For remaining silent (by not complying with IRS rules) Snipes is going to prison for three years.

2:25 AM, April 28, 2008  
Blogger Cham said...

The right to remain silent has to do with the judiciary, not the tax code. According to Ben Franklin the only two certainties in life are death and taxes, I tend to agree. If someone did manage to prove that wage earners aren't obligated to file a tax return, that would be a loophole closed at the speed of light.

8:52 AM, April 28, 2008  
Blogger Serket said...

Middle Class Guy - All three celebrities (Stewart, Snipes and Ryder) committed a crime. Was their punishment strengthened to send a message?

Olig: When you are paying a percentage of your income to taxes with every check and at the end of the year they sorry you didn't pay enough, then how is that money you weren't taxed on?

2:11 PM, April 28, 2008  
Anonymous Anonymous said...

Tax on tax after tax on tax, serket.
Gas tax, sales tax. Everything one buys is taxed. The taxes on everything one buys are paid with after tax income. If you save a little of that after tax income, and it earns a little interest, that's taxed too. I've never really run it down, but I'm willing to bet 60 cents of every dollar earned - or more - goes to taxes.

My dad passed away many years ago. He paid taxes for 18 months after that. Death tax, too, which is absurd.

6:26 PM, April 28, 2008  
Blogger Sid said...

br539 & oligonicella,

I am a 39-year-old with 3 campaigns under my belt, 2 kids, a wonderful wife, and a struggling small business (www.thecrayonyears.com).

I hope it was obvious that I was only teasing you both about the tax kerfuffle and not being friends. I do enjoy reading your comments here at Dr. Helen's and am glad that you did not descend into the tit-for-tat name-calling.

Looking forward,

8:16 AM, April 30, 2008  
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