The Supreme Court has refused to hear the appeal of actor Wesley Snipes over his federal conviction on tax evasion charges. The justices’ brief order Monday came without comment, and means Snipes will remain in prison to continue serving a three-year term. The 48-year-old actor had appealed his misdemeanor convictions for not filing tax returns in 1999, 2000 and 2001. Snipes was acquitted of felony charges.
As a reminder, Snipes had availed himself of the frivolous “Section 861” argument, a common choice for tax protestors.
Under the tax protesters’ section 861 argument, only income derived from “taxable activities” becomes “taxable income.” The list of taxable activities is located in the Section 861 regulations. Proponents of this argument state that individuals with domestic income must go to these regulations to determine if the activities that generate their income are taxable or not. Protesters state that regulation section 1.861-8T(d)(2)(iii) defines the taxable activities, and since the domestic activities of residents of the United States (Americans and resident aliens) are not shown to be taxable, the domestic income derived from such activities does not become taxable “gross income“.
Of course, the real loser in all of this is Billy Hoyle, who is without a friend and teammate, leaving the King and Duck as undisputed champs of the outdoor hoops scene.