This sounds ludicrous (and it is, of course), but some tax protesters came up with this argument. And a very famous actor apparently bought it.
Wesley Snipes, star of Blade and Passenger 57, went to an accountant who believes this. Mr. Snipes allegedly amended his tax return and claimed that he should get a $12 million refund. The government says that the IRS sent letters to Snipes advising him of the error of his ways…but he continued to claim the refund. Snipes now stands charged with filing false tax returns and claiming false refunds. He’s out on $1 million in bond.
The Internal Revenue Code (which is a law, Title 26 U.S.C.) says that all income is taxable. If the charges against Snipes are true, Snipes better hope that the judge he draws has a very good sense of humor.
The U.S. Tax Code is a mess. I’ve basically completed my returns for the year, and I’m amazed at how ugly our tax system has become.
I hope you’ve enjoyed this series. One thing I do hope you realize is that almost all income is taxable. If you follow down the path of Snipes (allegedly, of course) and Hatch, you’re asking for trouble. If you’re famous, you’ll get it, because the IRS likes to make examples of bozo celebrities.
Tags: BozoTaxTips