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Tax Court Affirms Rejection of Wesley Snipes Settlement Offer

The United States Tax Court on Thursday held the actor Wesley Snipes failed to justify a low-ball offer to settle IRS tax claims against him, meaning he may be on the hook for $9.5 million.

(CN) – The United States Tax Court on Thursday held the actor Wesley Snipes failed to justify a low-ball offer to settle IRS tax claims against him, meaning he may be on the hook for $9.5 million.

Snipes, who served three years in federal prison for avoiding taxes, was released 2013 and since then has been trying to settle with the assessors from the agency who say he still owes $23.5 million in back taxes.

Snipes maintains that economic hardship bars him from repaying the full amount.

In a so-called “offer-in-compromise,” Snipes said he could pay $850,000 cash, but according to an 18-page order filed by tax court Judge Kathleen Kerrigan on Thursday, the actor failed to provide any evidence of his hardship or the current state of his assets.

“Given the disparity between [Snipes] $842,061 [offer-in-compromise] and the settlement officer’s calculation of $9,581,027 as his [reasonable collection potential], as well as [Snipes] ability to credibly document his assets, the settlement officer and her manager had ample justified to reject the offer,” Kerrigan wrote.

Snipes’ attorney Atlanta, Georgia-based attorney Vivian Hoard did not immediately respond to request for comment.

Categories / Entertainment, Government, National

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