Remember Richard Hatch, the Survivor winner who decided not to report his $1 million in winnings? Mr. Hatch, who is now residing at ClubFed, went to his accountant and was told he had to pay taxes on his winnings. He asked his accountant what would happen if he didn’t include his $1 million prize, and was told he’d get a small refund. He asked his accountant to prepare that return; the accountant did, but stamped “Do Not File” on the return. Mr. Hatch filed the return and the rest is history.
Mr. Snipes appears to have engaged in similar behavior. He called his tax accountant, Kenneth Starr of Starr and Company, and told Mr. Starr that he didn’t have to pay taxes. “I said that was ridiculous; that everyone has that obligation. He said he had spoken to some people that said he didn’t have to,” Mr. Starr told the Ocala, Florida court yesterday.
Mr. Snipes had the not-so-perfect rejoinder, according to Mr. Starr. “He said, ‘You always think you’re right and you always think you know everything. You’re not right about this.'” Mr. Starr then sent a letter to Mr. Snipes terminating their accounting relationship.
Under cross-examination Mr. Starr was asked whether he had sent a written notice to Mr. Snipes that he had to pay taxes. The AP report notes, “Starr said he didn’t have to; he told Snipes on the phone and needed nothing further to terminate their tax arrangement.”
Joe Kristan has more at Roth Tax Updates.
Tags: Snipes