Why Do Celebrities Like Wesley Snipes and Joe Francis Fall Prey to Crooked Accountants?
Why do so many celebrities have tax problems? It seems as though celebrities are almost universally bad at managing their money and paying their taxes
. They are also easy targets for tax protesters and other charlatans. In the case of Wesley Snipes, he was doing great until he met Eddie Ray Kahn and Douglas Rosile, who were Snipes' former tax advisers, and basically told Snipes that he didn't have to pay income taxes.Of course, when Kahn had his license revoked, things went downhill for Snipes, as well. Snipes ended up defending himself in a criminal tax trial and facing a decade of jail time. In the end, he avoided criminal charges, but he was still faced with millions and millions of civil penalties and back taxes.
"On Feb. 1, 2008, the jury convicted co-defendants Kahn and Rosile on the conspiracy and false claim charges, but acquitted Snipes on the same charges. The jury instead convicted Snipes on the misdemeanor charges of willful failure to file individual federal income tax returns for calendar years 1999, 2000, and 2001. The jury acquitted Snipes, however, on the failure-to-file charges for 2002, 2003 and 2004. -Web CPA"
The bad publicity derailed his career for a short time. In the end, Snipes was still convicted of three misdemeanor counts of willful failure to file. He has been free on bail pending his appeal. He has requested a new trial based on discovered evidence that the jury was tainted.
Another rich star who is has serious tax woes is Joe Francis, whose downfall was essentially orchestrated by a CPA who was either crooked or completely incompetent. The CPA prepared Francis' returns, claiming millions of dollars in improper expenses, and has now become a star witness for the government. I see this as problematic, because although Francis is ultimately responsible for what's on the tax return, the CPA, (former accountant Michael Barrett) that prepared his returns is also culpable. If Barrett signed off as a paid preparer on expenses that he knew were improper from the beginning, then I don't see how Francis can be 100% to blame for the improper filings. Francis' attorneys also charge the government with withholding exculpatory evidence-- numerous emails that show that Francis was infuriated with Barrett, his former accountant, for improper billing. So could this case possibly be a case of nasty accountant revenge?
In fact, in this case, unless the government can prove that Francis knew that the expenses were improper, then I see this as a case where the accountant should be stripped of his license and go to jail. Francis should pay all the taxes owed, including penalties and interest, but if the accountant was truly managing Francis' affairs, then Barrett is the one who should be charged with a felony.
If Francis truly used his reliance on advice from Barrett, then this is an accepted as defense to penalty assessment.
I understand that the IRS likes to prosecute high-profile people like actors, but in these two cases, the accountants seem like the shadier characters, and the celebrities were just pigeons. I know they are still at fault, but I know that I have many clients that have no concept whatsoever of tax law and if I told them that they were required to file their tax returns on construction paper and use crayon, they would do it. The government should fight to get all the money that these celebrities rightly owe, but the accountants need to shoulder their share of the blame, as well.
Why Do Celebrities Like Wesley Snipes and Joe Francis Fall Prey to Crooked Accountants?
By: Christy Pinheiro EA ABA Travel Is The Most Experience! India Tours – Explore Incredible India Tourist Destinations Kullu Manali -an Outstanding Summer Retreat Destination Book Review: Mexican Autumn By John Howard Reid Comparison Among Different Materials of Watch Straps Be a part of the 2010 Summer DAVOS (World Economic Forum) in China Collecting Checks Signed by Celebrities La Villette Jazz Festival - A Melodic Feast Travel Kerala Dual, Tri, Or Quad Band Gsm Cell Phone For International Traveling Cancellation Holidays Can Be Your Dream Come True Kerala Tours and Travels Moon Festival – A Festival of Legendry Brilliance