Everybody Does Not Look Good In Stripes

The internet is all abuzz because they have realized that the IRS expects individuals to claim their illegal income. Honestly, I got a good kick out of the memes and commentary. Some folks are just too young to know but plenty of people that seem surprised lived through the various Mafia and Celebrity Tax Evasion take downs.

Prosecutors were never able to pin any criminal charges on Al Capone, they eventually got him for income tax evasion. Capone was convicted on five counts of income tax evasion and was sentenced to 11 years in prison. Gotti was also convicted of income tax evasion amongst other crimes. The combination of charges caused Gotti to be sentenced to life in jail with no chance of parole.

Tax Evasion is not isolated to the Mafia, there are some notorious Celebrities as well. Who can forget Wesley Snipes and his 2008 conviction. Yep, as recent as 2008 very well known celebs were going down for income tax evasion. Willie Nelson, pulled off the ultimate finesse after his "tax shelter" was deemed bogus AF. Somehow, his legal team negotiated an unusual and unprecedented revenue-sharing agreement.

However, the women were my fave. Hey, what can I say, I am woman that cheers for other women, lol. There was the Hollywood Madam, Heidi Fleiss. I personally, cannot knock a girl for turning a buck off of men's insatiable obsession with beautiful women, but she should've paid her taxes. Heidi ended up not only paying back taxes and fines, but she also did 37 months in prison. I remember vividly as a child when Leona Helmsley was arrested and her famous quote was splashed across every New York City newspaper, "We don't pay taxes. Only the little people pay taxes. Fun fact: Former NYC Mayor Rudy Giuliani, was the attorney that got her convicted. Miss "We Don't Pay Taxes" spent 18 months in a federal penitentiary.

I say all of that to say this, get yourself a really good accountant and/or tax preparer. Publication 17 clearly states that ALL income is to be reported. Pub. 17 identifies everything from money earned doing your favorite hobby to money you received as a kickback (which is also very much illegal). It is important that you have someone that understands not only the tax laws and regs, but also your individual situation.

If you find yourself in a scuffle with the IRS or your state taxing authority, do not hesitate to contact Lessington Law. We are experienced at handling federal and state tax controversies.

Disclaimer: We do not condone, encourage, nor support any illegal activity.

This blog is for general information and education purposes only.

It is not offered as legal advice or legal opinion.

To the extent this message contains tax advice, the U.S. Treasury Department requires us to inform you that any advice in this letter is not intended or written by our firm to be used, and cannot be used by any taxpayer, for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code. Advice from our firm relating to Federal tax matters may not be used in promoting, marketing or recommending any entity, investment plan or arrangement to any taxpayer.