Defense Rests in Snipe Tax Fraud Case

The defense in the tax fraud and conspiracy trial of Wesley Snipes rested Monday.^[1] In trial after indictments handed down which named Snipes, Eddie Ray Kahn and Douglas P. Rosile.^[2] Snipes and the co-defendants allegedly stopped filing his federal tax returns in 2000, demanded some $11 million in refunds on taxes previously paid and tried to settle other U.S. Treasury debts with fake checks.^[3]

All three were charged tax fraud and conspiracy, while Snipes faced six additional charges of willful failure to file a return from 1999 to 2004.^[4] The 45-year-old actor faces a potential sentence of 16 years in prison, while Kahn and Rosile could get 10; however, sentences that long are extremely rare in these cases.^[5]

"We chose not to call witnesses because there was no need to. The government prosecutors have put on a case that simply does not come close to meeting the standard of its burden of proof……..It was obvious after we went over the evidence the government presented that we could move on to closing arguments immediately and get a just acquittal for Wesley on all counts listed in the indictment," Snipes' federal criminal defense attorney Daniel Meachum said in a statement. ^[6]

Attempt to evade or defeat tax
This crime is covered under 26 U.S.C. § 7201 wherein it states that any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.^[7]Additionally 26 U.S.C. § 7206 covers fraud and false statements and that section declares that any person who willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter.^[8]

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^[1] AP Staff, Snipes' Defense Rests in Tax Fraud Trial, Associated Press Newswire, January 28, 2008, available at LEXIS, News Library, Wire News Services.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] 26 U.S.C. § 7201(2007).
^[8] 26 U.S.C. § 7206(1)(2007).