Wesley Snipes is on the hook to the IRS for nearly $10 million after his appeal on his settlement offer was rejected.
After a prolonged back and forth between the "Blade" star and the IRS, his $23.5 million tax debt was reduced to a little over $9.5 million. Snipes then offered to pay up $850,000 to settle the debt but the IRS rejected the offer.
Snipes later filed a petition asking the tax court to overturn the decision and a judge handed down a ruling on Thursday in favor of the IRS.
In making her decision, 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."
The judge also concluded that paying the $9.5 million would not leave Snipes in economic hardship.
In 2008, Wesley Snipes was sentenced to three years in prison for not filing his federal income tax returns.