Top 5 Famous Tax Cheats And How They Evade It.

Who isn't interested in avoiding taxes? Anyone may arrange his affairs so that his taxes shall be as low as possible... for nobody owes any public duty to pay more than the law demands, famously stated Judge Billings Learned Hand, summarizing the American tax situation.

Income tax evasion is different from tax avoidance. Tax avoidance is the practice of using legal means to lower the amount of taxes owed, whereas tax evasion occurs when a person or business uses illegal means to avoid paying taxes.

5 Famous Tax Cheats

• Walter Anderson
• Al Capone
• Joe Francis
• Wesley Snipes
• Leona Helmsley

These well-known tax evaders came up with clever (but illegal) ways to avoid paying. Find out how they were caught and how much they owed.

1. Walter Anderson

The case of Anderson is the largest tax evasion case in American history. It was alleged that this former executive in the telecom industry used aliases, offshore bank accounts, and shell companies to conceal his earnings. Anderson admitted to concealing approximately $365 million in income in a guilty plea in 2006.

He received a sentence of nine years in prison and $200 million in restitution.

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He has been spared from having to pay the majority of the taxes that are owed due to a typographical error in the amount of the judgment that the federal government has rendered against Anderson.

Anderson is still liable for $23 million that he owes the government of the District of Columbia, despite the fact that the IRS conceded taxes and penalties for the three years that Anderson was involved in the case.

2. Al Capone

The notorious mobster's name Al Capone, has been associated with a number of illegal activities, including prostitution, bootlegging, and murder. Al Capone, on the other hand, was only convicted of income tax evasion, a single illegal act. As the Chicago Outfit's boss, Capone was responsible for the organization's estimated annual revenues of $100 million.

Since the word lawful was removed from the 16th Amendment in 1916, income earned through illegal activities is taxed.

This put criminals like Al Capone in a difficult position because they had to choose between lying about paying taxes and risking jail time for evasion or admitting to breaking the law and filing the correct taxes (essentially admitting). Capone received a sentence of 11 years in prison and was required to pay fines as well as the tax bill that remained unpaid, like the famous ponzi inventor.

3. Joe Francis

The creator of Girls Gone Wild has a history of controversy. He was accused of felony tax evasion in 2007 for allegedly submitting false corporate tax returns. Francis was accused by authorities of avoiding paying taxes by filing false business expenses totaling more than $20 million.

He was able to avoid the felony charge by entering a guilty plea.

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However, it would appear that Francis has not completely overcome his tax issues. Francis was the subject of a tax lien issued by the IRS in November 2009.

A staggering $33.8 million is due.

4. Wesley Snipes

Federal prosecutors have made a number of allegations against the Blade star. It is alleged that Snipes concealed income in offshore accounts and withheld federal tax returns for a number of years. The actor was thought to owe between $12 million and $14 million in federal taxes.

Snipes was found guilty of misdemeanor charges in 2008, but he was cleared of felony tax fraud and conspiracy charges.

Snipes received a three-year prison term. Douglas P. Rosile, his accountant, and Eddie Ray Kahn, a tax protester, were named as co-defendants. Rosile received a four-and-a-half-year prison term. Kahn received a ten-year prison term.

5.Leona Helmsley

This hotelier, who was dubbed the Queen of Mean, reportedly stated to a former housekeeper, We don't pay taxes. Taxes are only paid by the few.

Helmsley and Harry built up a real estate portfolio worth a lot of money. They were accused of deducting millions of dollars from their personal expenses in order to avoid paying taxes, despite their enormous wealth.

Helmsley was found guilty of three counts of tax evasion in 1989. She was in federal prison for 18 months. She was given the order to go to prison on April 15, 1992, the day of the income tax deadline for that year.

conclusion

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There are some individuals who go to extraordinary lengths to save money, but there is a clear line between being creative and breaking the law. Tax evasion is permissible and understandable, but it carries severe penalties. The difficulties faced by these five individuals demonstrate that what you may save now will not be worth what you will have to pay later.