A Deep Dive Into Wesley Snipes' Longtime Financial Struggles
Wesley Snipes may be a household name thanks to his film credits, but there's no denying that for more than a decade, he's been more closely associated with his financial woes. From the tax fraud trial that landed him in prison, to unresolved credit card bills and continued issues with the IRS, Snipes has had one battle after the next.
News of Snipes' predicament first broke back in October 2006. At the time, the Department of Justice had accused him of conspiracy to commit tax fraud. The department's statement also accused the "Blade" actor of intentionally not filing returns from 1999 to 2004, and that he stood to face prison time. Things did not look good for the actor — and that was just the beginning. That December, Snipes was arrested. He'd been able to pay a $1 million bond, and permitted to return to Namibia to complete filming "Gallowwalker," but warned that early the following year, he'd need to hand his passport over to authorities.
The years to follow would continue to be dramatic for the actor, with the star in and out of court ahead of his eventual imprisonment in 2010. However, even three years behind bars didn't mean the actor would be free from his financial woes, once he got out.
Wesley Snipes was sued by AmEx while still in jail
Being put behind bars didn't stop Wesley Snipes' continued financial troubles. In 2011, while serving prison time at the McKean Federal Correction Institution, American Express filed a lawsuit against the actor, claiming he owed close to $30,000. The lawsuit called for the amount to be settled in full, as well as for any court and legal fees incurred during the process to be paid for by the actor.
There can be no doubt that the entire situation was an awkward one for Snipes. After all, many years prior, a scene in "Major League" saw the actor's character and his co-stars advertise the credit card company. Snipes' character had even delivered the ad's payoff line, sliding into a split and quipping, "The American Express card: Don't steal home without it" (via YouTube). Awkwardness aside, other than the initial reports that American Express was suing Snipes, nothing else regarding the situation has ever been made public. There's a possibility, then, that that means the matter was settled quickly, and in private.
Even if the American Express situation was handled, though, Snipes' financial troubles were far from over. Several years after the AmEx lawsuit, and after Snipes had finished serving his time, he was dealt yet another blow. He still needed to pay those taxes.
The actor tried to file an OIC, but it was rejected
Even after his imprisonment, Wesley Snipes was still required to settle his IRS bills. In response, the actor attempted to file an Offer In Compromise on the grounds that the staggering amount he owed, which by 2015 was over $23 million, was unreachable. Snipes offered to pay up less than $850,000. However, that didn't pan out too well for the actor.
Once again, a years-long legal process ensued. After Snipes' offer was turned down, he filed a petition of his own. The actor felt that the IRS was coming up with unsubstantiated numbers and that it was taking advantage of its ability to grant OICs at its discretion. Unfortunately for the actor, though, the tax court saw things differently. In fact, Judge Kathleen Kerrigan pointed out that Snipes and his team hadn't given nearly enough evidence to suggest he was unable to make the payments.
After Judge Kerrigan's ruling, it was possible the IRS would go after his property if he didn't pay up. At the time of writing, it's not clear if that happened. Here's hoping that means Snipes has made the payments or is in the process of doing so. We'd love to see him leave his financial woes behind him for good.