Wesley Snipes lost his court bid to lower his income tax debt to an affordable sum. A U.S. Tax Court judge ordered the actor to pay $9.5 million in back taxes.
Snipes, who served 3.5 years in prison for income tax evasion, owed the IRS $23 million in back taxes from 2001-2006.
The judge rejected Snipes’ request to allow him to pay $850,000 as an offer-in-compromise (OIC) to wipe out his tax debt.
The judge ruled that Snipes did not prove he can’t afford to pay back the debt by liquidating his assets (homes, cars, etc.).
This is why you shouldn’t believe those slick TV commercials that offer to help you pay the IRS in pennies on the dollar.
The IRS rarely ever approves an offer-in-compromise unless you are destitute and practically living on the streets.
Take it from a blogger who just last week offered to pay the IRS $50,000 in cash to wipe out her debt of over $120,000. The IRS agent laughed in the blogger’s face, and said $50,000 wasn’t enough.
Photo by Rich Polk/Getty Images for IMDb
