Oct 18, 2006 6:05 am US/Eastern
Actor Wesley Snipes Indicted For Tax Fraud
Actor, 2 Others Formally Charged With Conspiracy To Defraud IRS
WASHINGTON (CBS) ―
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Federal prosecutors in Tampa, Fla., said Snipes fraudulently claimed refunds in 1996 and 1997 on taxes already paid, and then failed to file returns between 1999 and 2004. (File)
(Photo by Frank Micelotta/Getty Images)
Wesley Snipes and two other men have been charged with conspiracy to defraud the IRS and a fraudulent claim for payment to the IRS, officials from the Internal Revenue Service announced Tuesday.
The actor could face a maximum of five years in prison for each of the charges.
An eight-count indictment, unsealed on Tuesday, also names Eddie Ray Kahn of Sorrento, Fla., and Douglas P. Rosile, of Venice, Fla.
The three men allegedly filed two income tax returns for Snipes, claiming refunds totaling almost $12 million. The indictment also alleges that Snipes did not file his 1999 through 2004 federal income tax returns.
Snipes, who has starred in films such as "Blade" and "White Men Can't Jump," is also charged with six counts of failing to file income tax returns. He faces up to one year in prison on each count.
According to the indictment, Kahn was the founder and leader of American Rights Litigators (ARL) and its successor, Guiding Light of God Ministries (GLGM).
ARL was formed in 1996 and conducted business from an office located in Mount Plymouth, Fla., until August 2003, when ARL moved to an office located in Mount Dora, Fla., and began operating under the name Guiding Light Of God Ministries.
It is alleged that ARL and GLGM were for-profit, commercial businesses that promoted and sold fraudulent tax schemes designed to impede the administration of IRS laws.
The indictment alleges that Rosile was a CPA but continued to work as an accountant after his licenses in Ohio and Florida were revoked and allegedly prepared fraudulent returns for members of American Rights Litigators using the so-called "861 argument."
Authorities alleges that that Snipes, Kahn and Rosile knew the "861 argument," which says that U.S. citizens and residents can be taxed only on income derived from certain foreign-based activities and not on wages and other income earned within the United States, was false.
"The Justice Department will vigorously investigate charges of counseling or committing tax fraud," said Assistant Attorney General Eileen J. O'Conner in a statement.
"Our system of government depends on citizens paying their fair share of taxes," stated U.S Attorney for the Middle District of Florida Paul Perez. "Those who intentionally and unlawfully harass the IRS through deceit, trickery and fraud undermine the collection of revenue that is vital to every aspect of the operation of our government, including defense, the war on terror, health care, law enforcement and education."
The case is being investigated by the IRS Criminal Investigation.
(© MMVI, CBS Broadcasting Inc. All Rights Reserved.)
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