TBO.com - TBO is Tampa Bay Online

Snipes' Former Tax Expert Says He Told Him To Pay IRS

ADVERTISEMENT

By TRAVIS REED The Associated Press

Published: January 18, 2008

Updated: 01/18/2008 12:55 am

OCALA - Wesley Snipes' defense attorneys and former financial adviser sparred Thursday in court, the first impassioned moments in a tax fraud and conspiracy trial that could land the actor in prison.

Kenneth Starr, head of the New York-based Starr and Co., which handled Snipes' taxes before he met his co-defendants, testified that he had a 90-minute phone talk with the actor trying to convince him he had to pay taxes.

Snipes "was adamant about the fact that he did not have that obligation," Starr said. "I said that was ridiculous; that everyone has that obligation."

Snipes is charged with tax fraud, conspiracy and willful failure to file tax returns, which could bring up to 16 years in prison. Co-defendants Eddie Ray Kahn, founder of the tax protest groups American Rights Litigators and Guiding Light of God Ministries, and Douglas P. Rosile, a CPA who lost his license and who allegedly prepared Snipes' documents, face up to 10 years.

Also Thursday, U.S. District Judge William Terrell Hodges approved Kahn's request to waive his right to appear in court.

Prosecutors say Snipes paid taxes in the '90s, but changed his mind after meeting Kahn in 2000. He allegedly stopped filing returns, illegally sought $11 million in 1996 and 1997 taxes paid, and drew fake checks to pay the U.S. Treasury.

Prosecutors on Thursday presented letters Snipes sent the IRS, insisting the agency was never properly established and did not prove he had to pay taxes. Snipes gave the government several timelines, then declared himself the winner in default judgment when agents did not respond.

Starr said he sent a letter terminating his tax services with the actor the day after the 2000 conversation.

Snipes' defense said Starr never told the actor in writing it would be illegal to stop paying taxes. Starr said he didn't have to; he told Snipes on the phone and needed nothing further to terminate their tax arrangement.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT