Rapper Ja Rule's Tax Evasion Time Served, Mostly
by Terri Eyden on
By Teresa Ambord
Rapper Ja Rule spent the last nearly two years in prison at Ray Brook Correctional Facility in Upstate New York on charges that included illegal gun possession and tax evasion. Now he'll finish his sentence on home confinement. Ja Rule, age thirty-six, was born Jeffrey Atkins.
In 2010, Atkins was sentenced to twenty months on gun possession charges. Then, in 2011, he plead guilty to charges of tax evasion, which brought a sentence of twenty-eight months. The tax charges came after he failed to pay taxes in New Jersey on more than $3 million in income from 2004–2006.
Atkins earned some "good time" for his gun charges, but when that sentence ended, he still owed some time for tax evasion. The remainder of his sentence will be served at his home, monitored by authorities. If he secures permission, he'll be allowed to leave home to resume his professional duties as a performer. Atkins' tax debt is about $1.1 million, and he told MTV reporters he's eager to get back out there and work to clear the liability.
Atkins attributed his failure to pay taxes to a combination of circumstances: his youth, his huge income, and his lack of financial guidance. This is a story we hear all too often. Young entertainment and sports stars are suddenly overwhelmed with enormous fees, often in the form of 1099 income with no taxes withheld, and no idea how to handle it. To his credit, Adkins shouldered the blame himself.
"I in no way attempted to deceive the government or do anything illegal. I was a young man who made a lot of money – I'm getting a little choked up – I didn't know how to deal with these finances, and I didn't have people to guide me, so I made mistakes," he told the court.
You may like these other stories...
For bitcoin users, the taxman cometh. And you best know how to calculate taxes owed on what the IRS calls convertible virtual currency.In March 2014, the IRS issued Notice 2014-21, which declares virtual currency will be...
Majority of House of Representatives urges leadership to preserve cash method of accounting for tax purposesA bipartisan majority of the House of Representatives – 233 members – has signed a letter urging House...
More than 1 million tax payments have been processed so far in 2014 through IRS Direct Pay, a free web-based payment system that debuted earlier this year, the tax agency announced on Wednesday.Available through the Pay Your...
Upcoming CPE Webinars
In this course, Amber Setter will shine the light on different types of leadership behavior- an integral part of everyone's career.
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.