It’s Fix the Tax Code Friday! Since I posted about Marion Barry’s tax woes earlier today, I thought it would be great fodder for Fix the Tax Code Friday. Tax evasion cases have often made news – from Wesley Snipes to Joe Francis to Helio Castroneves – especially when jail time is involved. Counsel in these matters generally argue that an alleged failure to file tax returns should be a private matter and not made a criminal case. Prosecutors argue, however, that big time jail sentences deter other citizens from committing similar crimes (tax fraud, tax evasion, etc).
Today’s Fix the Tax Code Friday question is:
Should failure to file federal tax returns be a criminal offense? Is jail time an appropriate response for failing to file federal tax returns? And if so, should there be a dollar amount or number of years for which taxes are not filed, before jail time is imposed?
Forget “late filing syndrome” – that’s so 2008. For 2009, try the new and improved “I had too many other things going on” defense… it seems to be working out well for Marion Barry.
Barry is currently facing tax evasion charges for failing to file his federal tax returns for the 2007 tax year (he finally filed them on this past Tuesday). A one time offense would generally not be a big deal except for the fact that Barry was already on probation stemming from misdemeanor charges for failing to file federal tax returns from 1999 to 2004. At the hearing for that tax trial, Barry tested positive for cocaine and marijuana; drug counseling was also part of his sentence.
So many charges might beat down any other man, but Barry takes it all in stride. He has, after all, seemed to rise like a crazy phoenix out of a dead political career in DC, where being a drug addict or tax evader is apparently not a barrier to serving in public office. Barry was mayor of DC from 1979 to 1991, until he was arrested on charges relating to possession of crack cocaine, for which he served prison time. Upon his release from prison, he was elected to City Council in DC, where he served through 1994, at which time he returned to the office of mayor. A little prison time on the ol’ resume doesn’t keep DC voters from pulling that lever… Barry now serves on City Council – again – in DC.
Despite his approximately $100,000 salary for sitting on Council, Barry has apparently been unable to find someone to do his taxes. He claims he has been distracted by dialysis… Apparently, ver-r-r-r-y distracted. It is alleged that Barry has failed to file taxes properly in eight of the last nine years – his dialysis has only last about four months.
Prosecutors have asked a federal judge to send Barry to prison for violating the terms of his probation. In their statement, they claimed:
It is not acceptable for any citizen to shirk a basic civil duty, let alone a former mayor and a current city councilman who has been responsible in the past and continues to be responsible for spending public funds collected from District of Columbia taxpayers.
A past push to put Barry in jail for violating the terms of his probation failed, with the judge claiming that the prosecution didn’t prove that the omission was willful. The current motion has not even been scheduled for a hearing.
If it is in the cards, prison will have to wait, since Barry is scheduled for a kidney transplant later today. While the waiting list for kidney transplants can last for five years, Barry caught another one of his infamous breaks by finding his own donor.
Will he catch another break and avoid more jail time? My guess is that he survives surgery, escapes jail time and gets elected for another term. What’s your guess?
Former DC Mayor Marion Barry got some good news this week, at a time when he could use it. A federal judge declined Thursday to revoke Barry’s probation, which would have resulted in prison time for tax charges.
Barry had already pleaded guilty in 2005 to failing to file required tax returns from 1999 to 2004. As part of his plea arrangement, he agreed to file all future federal and local tax returns timely. Despite the agreement, he didn’t file his 2005 returns on time and prosecutors fought for a revocation of his probation. However, Magistrate Judge Deborah A. Robinson would not revoke probation, claiming that prosecutors did not prove that the conduct was willful.
It marked the end (?) in a string of legal troubles for Barry this year. Last week, he was acquitted of drunken driving and other offenses. He still faces an August court date for another driving offense.
Barry is perhaps best known for being filmed smoking cocaine as part of an FBI sting. After a prison sentence, he was elected mayor for another four-year term.
