Wesley Snipes

Wesley Trent Snipes
Born:	July 31, 1962 Orlando, Florida
Charges:	Willful failure to file federal income tax returns (3 counts)
Sentence:	3 years
Facility:	FCI McKean
Status:	Released

Wesley Trent Snipes (born July 31, 1962) is an American actor, film producer, and martial artist who served approximately 28 months in federal prison after being convicted of three misdemeanor counts of willfully failing to file federal income tax returns. Snipes, best known for his roles in action films including the "Blade" trilogy, was acquitted of the more serious felony charges of conspiracy to defraud the government and filing false tax refund claims, but was convicted in February 2008 of the misdemeanor failures to file for the years 1999, 2000, and 2001. The sentencing judge imposed the maximum allowable sentence of three years—one year for each count—citing Snipes's "history of contempt for the tax system" and his association with tax protesters who promoted discredited theories about the illegality of federal income taxes. Snipes reported to federal prison in December 2010 after exhausting his appeals and was released in April 2013.

Summary

Wesley Snipes's tax case became one of the most closely watched celebrity tax prosecutions in American history, raising questions about the influence of the "tax protester" movement and the consequences of associating with individuals who promote discredited legal theories about federal taxation. Snipes was not accused of ordinary tax evasion through hiding income or claiming false deductions; rather, he was alleged to have participated in a scheme to avoid taxes entirely based on the legally baseless claim that American citizens are not obligated to pay federal income taxes.

The prosecution alleged that Snipes had filed false amended tax returns seeking refunds of over $11 million for taxes already paid, based on the fraudulent advice of tax protesters Eddie Ray Kahn and Douglas Rosile. While Snipes was acquitted of the conspiracy and false claims charges—suggesting the jury was not convinced he understood the scheme he was participating in—his conviction on the failure-to-file counts established that he had willfully neglected his legal obligation to file returns for three consecutive years during which he earned millions of dollars.

The maximum sentence of three years for three misdemeanor counts was unusual—prosecutors typically do not seek maximum sentences for first-time misdemeanor offenders. The judge's decision to impose the harshest possible punishment reflected his view that Snipes had shown contempt for the tax system and needed to serve as an example to deter others from embracing tax protester theories that have been uniformly rejected by every court to consider them.

Background

Acting Career

Wesley Trent Snipes was born on July 31, 1962, in Orlando, Florida, and raised in the South Bronx. He studied at the State University of New York at Purchase and began his acting career in the mid-1980s. Snipes rose to prominence in the 1990s with roles in films including "New Jack City" (1991), "White Men Can't Jump" (1992), "Passenger 57" (1992), and "Demolition Man" (1993).

His most commercially successful role was as the vampire hunter Blade in the "Blade" trilogy (1998, 2002, 2004), which grossed over $400 million worldwide and helped establish the modern era of comic book superhero films. At the height of his career, Snipes was earning tens of millions of dollars per film.

Association with Tax Protesters

At some point, Snipes came into contact with individuals associated with the "tax protester" movement, which promotes various legally discredited theories claiming that American citizens are not obligated to pay federal income taxes. These theories have been rejected by every court to consider them and are officially recognized by the IRS as "frivolous tax arguments."

Snipes became associated with Eddie Ray Kahn, a tax protester who ran an organization called American Rights Litigators (later Guiding Light of God Ministries), and Douglas Rosile, an accountant who prepared fraudulent tax documents. These individuals convinced Snipes—or at least provided him with materials that he used to justify—his failure to pay taxes and his attempts to reclaim taxes already paid.

Indictment, Prosecution, and Sentencing

Indictment

On October 12, 2006, a federal grand jury in Florida indicted Snipes along with Kahn and Rosile on charges of conspiring to defraud the United States and filing false claims for tax refunds. The conspiracy allegedly involved filing amended tax returns for 1996 and 1997 that sought refunds totaling over $11 million based on fraudulent legal theories. Snipes was also charged with failing to file federal income tax returns for the years 1999, 2000, and 2001.

Trial and Verdict

Snipes's trial took place in early 2008 in federal court in Ocala, Florida. The prosecution presented evidence that Snipes had failed to file returns for multiple years while earning millions of dollars and had submitted fraudulent amended returns seeking large refunds. The defense argued that Snipes had relied in good faith on the advice of tax professionals and did not understand that the advice was legally baseless.

On February 1, 2008, the jury delivered a split verdict. Snipes was acquitted of the felony charges of conspiracy to defraud the United States and filing a false claim with the government. However, he was found guilty of three misdemeanor counts of willfully failing to file federal income tax returns for 1999, 2000, and 2001.

The acquittals on the felony charges suggested that the jury was not convinced beyond a reasonable doubt that Snipes understood he was participating in a fraud scheme. The convictions on the failure-to-file counts established that he had nevertheless willfully neglected his legal obligation to file returns.

Sentencing

On April 24, 2008, Judge William Terrell Hodges sentenced Snipes to the maximum allowable term: three years in federal prison, consisting of one year for each of the three misdemeanor counts to run consecutively. The maximum sentence was unusual for a first-time misdemeanor offender and reflected the judge's assessment of Snipes's conduct.

The sentencing memorandum filed by prosecutors had argued for a significant sentence, citing Snipes's failure to pay over $15 million in federal taxes and his "history of contempt for the tax system." The judge agreed, noting that Snipes had associated with tax protesters promoting discredited legal theories and had shown no willingness to comply with his legal obligations.

Kahn, the tax protester who had advised Snipes, was sentenced to ten years in prison. Rosile, the accountant, received four and a half years.

Prison Experience

Snipes appealed his conviction and sentence, delaying his imprisonment for over two years. On July 16, 2010, the Eleventh Circuit Court of Appeals affirmed both his conviction and his sentence, finding that "the district court acted well within its considerable discretion in sentencing Snipes to thirty-six months in prison."

Snipes reported to the McKean Federal Correctional Institution in Pennsylvania on December 9, 2010, to begin serving his sentence. He was later transferred to an adjacent minimum-security facility. He served approximately 28 months of his three-year sentence before being released in April 2013.

Post-Release Career

Following his release, Snipes resumed his acting career. He appeared in "The Expendables 3" (2014), reprised his role as Blade in voice work, and has continued to work in film and television. His post-incarceration career has been less prominent than his 1990s peak but demonstrates his ability to return to professional work after serving his sentence.

Public Statements and Positions

Throughout his prosecution and appeal, Snipes maintained that he had relied in good faith on the advice of tax professionals and did not understand that their advice was legally baseless. His acquittal on the felony charges provided some support for this position, though his conviction on the misdemeanor counts established that his failure to file was willful.

Snipes's case has become a cautionary tale about the tax protester movement. The legal theories promoted by Kahn and similar figures—that wages are not income, that only gold and silver are legal tender, that the Sixteenth Amendment was never properly ratified—have been rejected by every court to consider them. Snipes's conviction and imprisonment demonstrated that celebrities are not immune from prosecution for tax crimes, even when influenced by convincing-sounding but legally frivolous arguments.

Terminology

• Willful Failure to File: Intentionally not submitting required tax returns, as opposed to accidental failure due to negligence.

• Tax Protester: An individual who promotes discredited legal theories claiming federal income taxes are illegal or unconstitutional.

• Frivolous Tax Argument: Tax arguments that have no basis in law and have been repeatedly rejected by courts.

• Misdemeanor: A criminal offense less serious than a felony, typically punishable by up to one year in prison.

See also

• Fat Joe
• Lauryn Hill
• Prison Consultants

Frequently Asked Questions

Q: Why did Wesley Snipes go to prison?

Wesley Snipes was convicted in February 2008 of three misdemeanor counts of willfully failing to file federal income tax returns for the years 1999, 2000, and 2001. He was acquitted of more serious felony charges of conspiracy to defraud the United States and filing false claims, but the jury found his failure to file was willful. His case involved association with "tax protester" figures who promoted discredited legal theories about federal taxation.

Q: How long was Wesley Snipes's sentence?

Snipes was sentenced to 3 years in federal prison on April 24, 2008—the maximum allowed for three misdemeanor counts, with one year for each count running consecutively. The maximum sentence was unusual for a first-time misdemeanor offender and reflected the judge's view that Snipes showed a "history of contempt for the tax system." He served approximately 28 months before being released in April 2013.

Q: How much did Wesley Snipes owe in taxes?

Snipes was accused of failing to pay approximately $15 million in federal taxes. He also allegedly filed false amended returns seeking refunds of over $11 million for taxes already paid, based on fraudulent advice from tax protesters Eddie Ray Kahn and Douglas Rosile. While acquitted of the felony fraud charges, he was convicted of the misdemeanor failure-to-file counts.

Q: Where did Wesley Snipes serve his sentence?

Snipes reported to McKean Federal Correctional Institution (FCI McKean) in Pennsylvania on December 9, 2010, to begin serving his sentence. He was later transferred to an adjacent minimum-security facility. He served approximately 28 months before being released in April 2013.

Q: Has Wesley Snipes continued acting after prison?

Yes, Snipes resumed his acting career after his release. He appeared in "The Expendables 3" (2014), has done voice work reprising his iconic role as Blade, and continues to work in film and television. His post-incarceration career has been less prominent than his 1990s peak but demonstrates successful reintegration into his profession.

Q: What happened to the people who advised Wesley Snipes?

Eddie Ray Kahn, the tax protester who advised Snipes, was sentenced to ten years in federal prison. Douglas Rosile, the accountant who prepared fraudulent tax documents, received four and a half years. Their heavier sentences reflected their direct role in promoting discredited legal theories and preparing false tax filings.