One of my favorite tax arguments is:
"Why do they always use High Profile Cases To Scare Us Into Paying Taxes"
When it comes to the IRS getting people to pay up, they usually use high profile cases to scare us into paying. One such case is the recent trial involving actor Wesley Snipes. For anyone looking to avoid paying taxes, all you need to do is hear his name and suddenly you realize "oh no, I better pay up or risk going behind bars!" While there are consequences for not paying your taxes, one must look deeper into this case to see why he ended up in the slammer. First off, he did pay his taxes. Yes, he had money with-held from his movie checks and did pay into the system. Then why did he go to jail? He went to jail because his accountant found a way to get him a full refund of all the money he paid in. This worked at first only to horribly backfire. In his case, it was the thought of getting a full refund based on a "tax protest" loophole which doesn't really exist that put him away. To top it off if he would've just left it alone he wouldn't have had to pay all the interest and penalties that were added to his total bill. The worst part about his case is his career as an entertainer allows for plenty of deductible expenses that would've legally gotten him a refund, but he got greedy and paid the price.
Another famous case is notorious mobster Al Capone. This is the biggest scare tactic since anyone who hears the name Al Capone thinks of hundreds of felonies from bootlegging to murder, however, despite his criminal spree it was tax evasion that put him in Alcatraz. In this case, it induces fear into the masses of trying to legally circumvent the tax code as they know that someone who blatantly engaged in so many illegal activities met his fate from not paying his taxes.
So what's the big deal anyways? Tax professionals know that there are many legal loopholes that don't involve filing for unnecessary refunds or just avoiding taxes altogether. Even if you are behind on your taxes, it is to your benefit to see a tax professional as soon as possible to become compliant. Best of all, there are many avenues you can take to avoid the hefty penalties and in some cases can pay in installments or even complete an "offer in compromise" which is where you can negotiate with the IRS for a fraction of what you owe. These cases are rare, however, they require the knowledge of a licensed professional and it is strongly recommended that you do not go at it alone or with an amateur.
Clint Masser
Licensed Tax Patriot & Director of Marketing
Jefferson Franklin Tax Services
Goodyear, AZ
Working on tax returns since 2006, Clint is currently a licensed tax professional in the process of studying for the Enrolled Agent exam. All of his work has been performed under the guidance of his father, a CPA/Enrolled Agent with over 30 years of experience who has provided tax preparation services and tax strategies for everyone from minimum wage employees to multi-millionaire business owners.
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