What was once a household joke, is still an unfortunate reality for Wesley Snipes after battling in court over his $23.5 million tax debt.
After a long-standing back and forth between Snipes and the IRS, the actor offered to pay only $850,000 of the million dollar amount he owed. But, of course, he was rejected. Eventually, the debt was reduced to a little over $9.5 million but Snipes still felt the amount was too high. Therefore, he filed a petition asking tax court to overturn the decision, according to The Blast.
Uncovered by The Blast, the U.S. Tax Court Judge Kathleen Kerrigan said, “Given the disparity between petitioner’s $842,061 OIC [offer-in-compromise] and the settlement officer’s calculation of $9,581,027 as his RCP [reasonable collection potential], as well as petitioner’s inability to credibly document his assets, the settlement officer and her manager had ample justification to reject the offer.”
Although Snipes net worth sits right at 10 million, the judge still says that paying the $9.5 million would not leave Snipes in economic hardship.