Sometimes you need Good Advice

I have always been in favour of people researching and making their own decisions regarding the financial issues in their business. This has been gravely tested as the case of the actor Wesley Snipes (he of “White Men Can’t Jump” and “Blade” fame) has unfolded over the last few months. Mr Snipes has been up in court for tax evasion. What is interesting about the case is not that he tried to hide income or under-declare what he earns, rather he was of the view that the Federal Income Tax in the US is illegitimate, and therefore he did not make tax returns between 1999 and 2001.

Choose your Advisors Carefully

In the US, there is a special type of tax advisor who questions the legitimacy of the whole tax system and whether there is a legal requirement to pay Federal Taxes in the US. While there has not been much success in the arguments, a very large scalp has recently been taken by the Inland Revenue Service in the US, with the sentencing of Wesley Snipes to three years in prison for failing to file and pay taxes.

Indeed, based on the advice of a “tax activist” Eddie Ray Kahn and “tax preparer” Douglas P. Rosile Snipes amended tax returns, including the one for 1997 that originally showed a tax liability of more than $7m, restated his liability as $0 and requested a refund. This kicked off a series of events which have resulted in a situation where Snipes now finds himself on bail while he appeals the aforementioned three year sentence. So the advice may have been a bit off.

Wesley Snipes – May have to get used to this pose

Make sure your Advisor Really Knows what they are Talking About

So what is the conclusion here – make sure that you are getting good advice on stuff that can cause you to end up in jail. There are times where the only thing that is acceptable is to actually talk to people who have the training and experience to do the job.

No excuses, no way out.