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Tax fraud puts Wesley Snipes and two other co-accuseds in deep trouble. According to the opening statements of federal prosecutor US Atty. Robert O’Neill, the actor had received a warning from Kenneth Starr, money manager from New York who is well known for his famous clients.

Based on the 1990 records that were presented, Snipes paid his taxes dutifully. But during 1999 up to 2004, he failed to pay his tax dues, which amounted to $37.9 million.

According to investigation, Kahn and Douglas Rosile, another co-defendant, had persuaded Snipes to totally avoid paying his tax dues based on the IRS code well known as the 861 arguments. This states that earnings of US citizens earned outside America are the only income taxable. However, this was not acceptable to judges and IRS.

Because of bad advice, the actor along with Kahn and Rosile faces sixteen years worth of jail time once found guilty of conspiracy and tax fraud. Aside from this, it is interesting to validate if Snipes had intentionally avoided paying his taxes because failing to do so is civil crime. Moreover, Snipes also faces charges for directing his companies not to withhold taxes from employees.