Law Offices of Connie Yi, PC - estate planning
Tell Us About Your Case

For the safety of our community, clients and staff, we have suspended all in-person meeting effective March 17, 2020. All consultation meetings will be via Phone or Zoom Video Conferencing. Please contact us at 925-484-0888 or email us directly at [email protected] to schedule the consultation.

Bay Area Estate And Tax Planning Law Firm
Estate Planning
Trust Administration and probate

Learning from celebrity tax mishaps: part two

| Apr 12, 2013 | Uncategorized |

In our last post we talked about tax troubles faced by celebrities. Specifically, Wesley Snipes and MMA fighter Nick Diaz have both garnered headlines in recent years. Snipes was sentenced to three years in prison for failing to file returns in 2008. And Diaz mentioned at a press conference that he has never paid taxes, leaving some to speculate whether he may face charges of failure to file or tax evasion.

One more recent case involves someone who is not technically a celebrity, but still in the public eye. The former Chief of Police of a major east coast city was indicted for conspiracy and willful failure to file tax returns. According to the federal indictment, he failed to file returns for the years 2008 through 2011.

He may have elected not to file returns because he allegedly diverted about $70,000 from his police department and withdrew more than $31,000 for his own gain. Of course he is proven innocent until he is proven otherwise but, even if he is found guilty, he will fare better than he would have if he had filed false returns to conceal his alleged actions.

This case highlights the difference between failure to file returns and filing false returns. Even if it is a willful act designed to defraud the Internal Revenue Service, failing to file returns results in less serious charges than filing false returns. Filing falsely is a felony while failing to file a return is a misdemeanor.

Source: Forbes, “IRS Problems That Land Even Jailers in Jail,” Robert Wood, March 29, 2013

To learn more about handling tax litigation and audits, please visit our website.

Archives

FindLaw Network

Recent Blog Post

Even a fortune can disappear without sound estate planning

Some figures baffle.Like the speed of light. Like the age and size of the universe. And like estimates pegging the personal fortunes of America's richest families.Consider this imagery relevant to the storied Vanderbilt family for a moment: a pile of money equaling...

Remarrying couples unquestionably need to focus on estate planning

Many remarrying California individuals fail to timely consider and update existing estate plans to reflect new realities.Don't be one of them. Many remarrying California individuals fail to timely consider and update existing estate plans to reflect new...

View More Blog Posts