Of course, not only are there Bozo tax professionals, there are Bozos in all professions–especially the arts.
Ja Rule is a famous rapper (well, famous in the world of rap). He also followed the tax practice that income after tax should be the same as income before tax. When you’re famous, that’s not a good idea.
Jeffrey Atkins (Ja Rule’s legal name) was the sole stockholder of two corporations. They paid him royalties from his music tours and from royalties (from sales of his music). That income neglected to make it to his tax returns from 2004 through 2008 (because he apparently didn’t file). That’s a great idea only if you get away with it…and he didn’t.
Mr. Atkins pleaded guilty to three counts of failing to file a tax return. The Department of Justice press release notes that the loss to the government is “…approximately $1,137,912.” [1] Mr. Atkins has agreed to file accurate tax returns and pay his back taxes (and penalties and interest).
Mr. Atkins will be sentenced in June, and he’ll likely get to record a rap version of “I Fought the Law” while at ClubFed…as with that tax loss that’s his likely destination. Mr. Atkins is also looking at two years in prison on a weapons charge.
[1] I’m amazed at the exactness of this approximation. I guess that cents are where the variance lies.
[…] Back in March I reported on rapper Jeffrey Atkins (aka Ja Rule). He decided that it was a good idea if his after tax income was the same as his before tax income. Given that the tax loss to the IRS was $1,137,912, that wasn’t a good idea. […]
[…] no. Mr. Bone might want to ponder the stories of Ja Rule, Fat Joe, Beany Sigel, to name a few, before he gets too smug about his tax […]