Yeah, this one isn't going to fall under the category of "Gosh, I forgot." I could, of course, be wrong. I've never seen a Schedule A with 12 million buckadingdongs on it...
According to the indictment released by the Justice Department, Kahn was the founder and leader of American Rights Litigators and its successor, Guiding Light of God Ministries. The businesses sold fraudulent tax schemes, authorities said in a statement.
Rosile was identified as a former accountant who continued to work after his CPA licenses were revoked in Ohio and Florida. He allegedly prepared fraudulent tax returns for American Rights Litigators, which charged its members a fee, half of which it allegedly paid to Rosile. In addition, ARL would collect 20% of any refund and half of that went to Rosile.
Snipes, Kahn and Rosile are accused of making it appear that Snipes had no liability for federal income taxes.
According to authorities, the claim is known as an "861 argument," which asserts that U.S. citizens and residents can be taxed only on income derived from certain foreign-based activities and not on income earned within the United States — a position that has been rejected by the courts.
The defendants filed two amended federal income tax returns for Snipes, claiming almost $12 million in refunds from 1996 and 1997 income taxes. The indictment also accuses Snipes of failing to file his 1999 through 2004 federal income tax returns.