Taxable Talk

If you’re accused of tax evasion, there are a myriad of good defense strategies. However, claiming you were kidnapped by IRS Agents isn’t one of them.

Judge William Terrell Hodges rejected that claim along with several others made by Mark Maggert. If the judge’s name sounds familiar, it should; Judge Hodges presided over the Wesley Snipes trial. And there’s more linking this case to Mr. Snipes.

Mr. Maggert, a dentist in Lake Lady, Florida, is being called an associate of Eddie Ray Kahn and American Rights Litigators by the Department of Justice. Mr. Kahn, tried with Mr. Snipes, is currently serving a ten-year term at ClubFed.

And Mr. Maggert’s other arguments are equally frivolous. He claimed the court has no authority and, according to the Orlando Sentinel, “[that the federal court] has no jurisdiction whatsoever over Me and is not a part of…a government of, by and for the people….” Mr. Maggert made other laughable claims, but Judge Hodges was having none of it. Judge Hodges called Mr. Maggert’s claims “patently frivolous.”

Mr. Maggert’s trial in Ocala is scheduled for January 4th.

Wesley Snipes had another day in court today. Oral arguments were heard in his appeal of his conviction on three misdemeanor tax evasion charges. Mr. Snipes’ attorneys argued that the trial should have been moved from Ocala, Florida to protect Mr. Snipes’ rights and that the sentence was harsh. The government argued that the trial was held in the proper venue and that Mr. Snipes received an appropriate sentence.

Mr. Snipes is free on bail while his appeal is being heard. It will likely be the Spring before the 11th Circuit Court of Appeals rules on Mr. Snipes’ appeal.

Poor Wesley Snipes. Mr. Snipes has appealed his convictions and sentence for tax evasion. While waiting for the appeal, he was given permission to travel to London and Bangkok for acting roles.

He did, and that was fine. But he also decided to visit Dubai. The new Atlantis, The Palm resort was opening up, and Mr. Snipes was attracted by the $20 million party being thrown. He had his picture taken on the red carpet.

Mr. Snipes should have sent his regrets, because now his passport has been pulled. The US Pretrial Services Office (they supervise convicted individuals that are not incarcerated) requested that Mr. Snipes’ passport be pulled. Dubai is about 3,000 miles from either London or Bangkok; Mr. Snipes violated the Court’s orders. Mr. Snipes will have to be content with domestic roles for now.

I hope it was a good party.

Hat Tip: Don’t Mess With Taxes

Wesley Snipes recently got clearance to go overseas to film a movie while waiting for his appeal to be heard. It looks like he’ll need some of the money he’s making: he just received the bill for his trial.

As Kay Bell reported in Don’t Mess With Taxes, Mr. Snipes has been ordered to pay $217,363.75. That represents $2,456.40 for trial transcripts, $138.18 for certifying and copying exhibits, $21,052.19 for witnesses, and $193,716.98 for scanning, printing and numbering documents.

Going to court can be expensive….

As promised, Wesley Snipes’ attorneys have filed a notice that they intend to appeal Snipes’ conviction and sentencing to the 11th Circuit Court of Appeals. The notice doesn’t specify what arguments they plan on using. The actual appeal will be filed later this year.

That’s the headline of an article in Canada’s National Post. The article looks at some notable (for all the wrong reasons) films that Wesley Snipes made. My favorite from the article:

Crime: Blade: Trinity (2004)

Verdict: The film that ruined Snipes’ career; just look at the movies he made after this: 7 Seconds; The Marksman; Chaos; The Detonator; Hard Luck; The Detonator. Have you heard of a single one? How they messed this up after the awesomeness that is Blade 2 is a mystery to film geeks everywhere.

Sentence: Garlic and sunlight.

Read the entire article and I hope you’re not sentence to three years of airline food.

Joe Kristan has an excellent round-up of tax bloggers’ reactions to Wesley Snipes’ sentencing. Joe’s conclusion is worth noting (especially if you have ideas of following Mr. Snipes’ attempts at not paying federal taxes):

Mr. Snipes’ acquittal on the felony charges still is important – I estimate that he would have served at least 3 more years had he been convicted. Still, the sentences ought to give some food for thought to the “show me the law” crowd — especially that given to Eddie Kahn, who refused to recognize the authority of the court. If you don’t think there is a law requiring them to pay income tax, but the federal judges, U.S. Marshals, and the Bureau of Prisons think there is such a law, your opinions won’t help you avoid prison any more than it helped Eddie Kahn or Wesley Snipes.

Wesley Snipes will be spending three years at ClubFed. Judge William Terrel Hodges sentenced Snipes to the maximum possible sentence on his three misdemeanor charges. The Associated Press noted that Judge Hodges said that Snipes had shown a “history of contempt over a period of time.”

During the sentencing hearing Snipes’ Attorney Daniel Meachum handed Judge Hodges three envelopes containing $5 million in checks. The judge didn’t accept them, nor did Assistant US Attorney Scot Morris. Later, an agent from the IRS did accept the funds. However, Morris later noted, “Your honor, that was a grandstanding move. It’s essentially a down payment on his taxes. It is in no way a settlement of his taxes. It will be a fraction of what he owes.”

Snipes will also spend one year on supervised release following his prison sentence. Snipes requested, and Judge Hodges will recommend, that he serve his time near his family’s home in New Jersey. Snipes will report at a date to be determined by the Bureau of Prisons.

Also sentenced today were Snipes’ co-defendants. Eddie Kahn also got the maximum sentence, 10 years at Club Fed, and Douglas Rosile received 4 1/2 years.

After the sentencing, Linda Moreno, another of Snipes’ attorneys, told Ocala.com, “We were hoping for a complete acquittal. I have faith in the process, and I have faith in the jury system. We will appeal.”

I’ve been on the phone all morning, but Joe Kristan has been watching Ocala.com. The sentencing hearing has broken for lunch (I suspect since it’s 4:09 p.m. as I type this they’ve reconvened), and Judge William Terrel Hodges remarked:

He noted that the maximum three-year sentence – which is one year on each misdemeanor count – is “squarely in the middle of that sentencing range.

“Why should I go any further than that,” Hodges asked.

This doesn’t look good for Mr. Snipes.

I’ll have the sentence when it’s announced.