Jeter in Tax Trouble

[Jayhawk Bill]

Originally Posted by 26 to 6

It's not that he's not payign his bills....it was just an oversight. Yeah, he has the place at Trump, but his home is in Tampa, so in his eyes that's his residence. So what, he filed as a Florida resident, simple. Because the state and city want the tax dollars they're persuing them...it's not a matter of Jeter being evasive and not paying his bills. He's a multi-millionaire, what reason would he have for not paying some taxes? It'll all be taken care of.

His home is in Tampa?

Originally Posted by Wikipedia

He currently resides in New York, although he travels often.

Owning a home in a different state doesn't exempt you from paying state taxes in the state where you work and own a home where you live while you're working.

You also say, "It's not a matter of Jeter being evasive and not paying his bills. He's a multi-millionaire, what reason would he have for not paying some taxes?" If so, why does the next defender say,

Originally Posted by Gom

Riiiight.

The shit my accountant does for me makes Jeter look like a choir boy. People do this shit all the time...claim residence for taxes, car insurance, etc. I'd be surprised if he had to pay anything, he works here in New York but lives in Florida. Prove otherwise. Personally, I couldn't care less if you paid me about his living arrangements. All I know is that I would be one hell of a hypocrite if I said anything about this issue.

See, people have incentive not to pay taxes. It's called greed.

Unlike steroid abuse, which is limited to a small fraction of the population, tax evasion is rampant. A study in Oregon* found roughly 25% of the population commits tax evasion. The Washington Post reported that 17 percent of Americans ADMIT to tax evasion, and that the IRS admitted that between 60 and 79 percent of tax cheaters who were caught red-handed using various subterfuges didn't get pursued, explaining why it's perceived to be almost a risk-free crime.** The IRS finds that, as the gap between rich and poor grows, the tendency of the rich to cheat on their taxes grows as well.***

Imagine this: the US Senate discovers that there's concern that many MLB players cheat on their taxes. To investigate it, they promise immunity and secrecy, but they get players to testify under oath regarding their taxes. Later, the news breaks about Derek Jeter's secret claim that he had no idea that working in New York City and living in the luxury Trump Towers in New York City meant that he couldn't buy a much more modest home in a state with no income tax and claim that he resided there when he really rarely slept there. Still later, news breaks that Derek Jeter may spend 30 years in jail because of his assertion that he didn't know that he was breaking tax law: the DA is considering such an assertion of innocence to be worthy of prosecution for perjury.

Ludicrous? Absurd? Let me post this: I may not know the exact content of every syringe that has ever been shot into me, but I know my exact home address, let alone knowing the state in which I live and work. Derek Jeter's actions are more despicable than Barry Bonds's actions. Maybe they both should be forgiven; maybe they both should be granted benefit of the doubt.

Maybe they should both go to jail.

But maybe Jeter should be punished and Bonds should go free: Jeter cheated the taxpayers of New York, while Bonds, if he knew it, just cheated in playing a game.


* http://links.jstor.org/sici?sici=002...3B2-E#abstract

** http://www.washingtonpost.com/ac2/wp...&notFound=true

*** http://www.irs.gov/pub/irs-soi/bloomq.pdf

[YAZMAN]

I'm pretty sure he could demonstrate that he's a legal resident of FL but still owe resident income tax in NY by virtue of their tax laws and the amount of time he spends at his NY property. As has been pointed out, he's already paid some NY income tax because anyone who works in NY pays some income tax to them. The difference in the resident versus non-resident amount won't be as much as the fines and interest he'll potentially own.

I have little sympathy for the wealthy who get caught trying to exploit tax loopholes and twist tax law. While they pay more than many of us, their percentage of income paid in taxes is frequently lower than those of us who live the life of the ever shrinking middle class. Plus, he pretty much owes his living to the people of NY who support is team and buy is merchandise. The income from endorsements argument is moot because his value as a brand spokesman or personality is directly related to his being the NY shortstop.

[a700hitter]

Originally Posted by YAZMAN

I'm pretty sure he could demonstrate that he's a legal resident of FL but still owe resident income tax in NY by virtue of their tax laws and the amount of time he spends at his NY property. As has been pointed out, he's already paid some NY income tax because anyone who works in NY pays some income tax to them. The difference in the resident versus non-resident amount won't be as much as the fines and interest he'll potentially own.

I have little sympathy for the wealthy who get caught trying to exploit tax loopholes and twist tax law. While they pay more than many of us, their percentage of income paid in taxes is frequently lower than those of us who live the life of the ever shrinking middle class. Plus, he pretty much owes his living to the people of NY who support is team and buy is merchandise. The income from endorsements argument is moot because his value as a brand spokesman or personality is directly related to his being the NY shortstop.

Legal residence is different than tax residence. If he was claiming to be a Florida resident, he's probably decalring less than half of his baseball compensation as NY income. Half the games are played out of state, and all of ST is out of state. We don't know the claimed split for his end endorsement income, but I doubt that he would claim that it was all NY income. He's probably excluding at least $10 million each year from his baseball compensation. He's probably excluding another few million of endorsement income. We are talking about $80- 90 million of understated income over 7 years at a minimum. The tax, interest and penalty on that would easily be over $10 million. The tax alone would be about $6 million. He would get hit with a negligence penalty at the very least.

[Gom]

Originally Posted by a700hitter

Every one should do what they can do to minimize their tax bill, but a guy with his resources should have had people that were good enough to know better ways to do it. Phony residence is low hanging fruit for the New York State Tax Department. By the way, it is NY, not the IRS, after the NY hero Jeter. When you are as rich and famous as Jeter, you should know that you are likely a potential target for the taxing authorities. They go after prominent people for the deterrent effect. He's a tax cheat. It doesn't matter if every one else does it. He's going to get convicted for it. It's like driving over the blood-alcohol limit. Lots of people have done that, but those who get caught are criminals. Sorry, but your icon is a tax cheat. If he wants to pony up the full freight with penalties and interest, they will not charge him with fraud or a crime. If he wants to cut a deal on the amount, they may make him publicly plea to a criminal conviction in front of the TV cameras. The tax tab will be quite heavy. I think we are talking about a bill that easily could be between $10-20 million. That's a big hit for anyone.

I can't see how this can be proven. He works in New York, he lives in Tampa. How can you prove it? He's in New York for 81 games a year. He's around the country for another 81 games. During the off-season, he lives in Tampa. How do you prove this?

Personally, I couldn't care any less about this if I tried. However, I work in finance, and 99% of it is about "withholding or selective information". I can't see how you can prove that he lives somewhere or not. This is not John Doe who commutes to work five days a week, fifty-two weeks a year. This is a guy who has 4-5 months off a year. He can live anywhere.

Not because I like Jeter, or have some idealized view of my team's players, I hope he beats it big time. I hate the taxation system here more than I hate seeing Big Papi come up in tie game in the 8th against Farnworth.

[Jayhawk Bill]

Originally Posted by Gom

Personally, I couldn't care any less about this if I tried.

Which leads one to wonder why you are using the moments of your life to post in this thread.

Unless you're lying--just as you previously admitted that you lie on your taxes.

However, I work in finance, and 99% of it is about "withholding or selective information".

Great! So you know the field!

I worked in a different state than my home of residence many times. If you maintain a domicile in a given state, spend a majority of your time in that state, and earn your living from a firm in that state, you pay income tax to that state. There's one exception I can think of: US military.

If you want you call me wrong, start citing references. You claim to be an expert: show it.

I can't see how this can be proven. He works in New York, he lives in Tampa. How can you prove it? He's in New York for 81 games a year. He's around the country for another 81 games. During the off-season, he lives in Tampa. How do you prove this?

One way, which would be sufficient, is that he lives in Trump Towers while playing with the Yankees at home. Adding to that would be his participation in New York night life during the off-season (which he certainly does), while living in Trump Towers.

He doesn't live in Tampa. He lives in New York City.

I can't see how you can prove that he lives somewhere or not. This is not John Doe who commutes to work five days a week, fifty-two weeks a year.

That's exactly how one can prove it. When Derek Jeter goes out, it makes the newspapers. There's a record trail of his whereabouts.

This is a guy who has 4-5 months off a year. He can live anywhere.

True. But he chose to live in New York City and to claim otherwise on his taxes.

Not because I like Jeter, or have some idealized view of my team's players, I hope he beats it big time. I hate the taxation system...

Yeah, right.

[Gom]

I posted my feelings on the matter. It's funny how Red Sox fans care about Jeter's tax issues. I personally don't care.

You're right about the military being an exception, I'm in finance, not taxation, so I'm not an expert on taxation matters.

As for my taxes, if I could get away with paying ZERO for taxes I would. Good for Jeter. I hope he beats it and doesn't pay a dime. I would say the same for anyone in baseball, even Bonds. I hate the taxation system.

Welcome to the real world Bill. The system is fraught with deception. Take a look at the mortgage industry. Stated income loans? Also known as liars loans?

Plus, from what I read in the paper, its for three years that he claims Tampa. Where he gets his checks, where he gets his mail, there are many ways he can prove his residence.

I lived overseas for three years. I wasn't a residence there, it was temporary for work. When my contract was up, I returned to my home. Was I resident there? Legally, yes. Taxation wise, yes. Found a good accountant who was able to claim otherwise, so I didn't pay taxes here or there. I claim my brother as a dependent since I pay for his medical schooling so he doesn't have to take a loan, and I get the tax breaks.

The system is skewed to let those that have the money keep it. I can't believe that you are that naive not to realize this. Anyone who doesn't go to an acocuntant to do their taxes has a fool for a client. I'm sure his accountants will figure out a way to get him out of it.

Wake up.

[Jayhawk Bill]

Originally Posted by Gom

Wake up.

Wake up???

Gom, I'm the guy who's aware of statistics on this issue, I'm the guy who cited the sole exemption of military personnel, and I'm the guy who requested references if you choose to differ. You didn't, and you differed, suggesting that you're the one who hasn't done his research, not me.

I lived overseas for three years. I wasn't a residence there, it was temporary for work. When my contract was up, I returned to my home. Was I resident there? Legally, yes. Taxation wise, yes. Found a good accountant who was able to claim otherwise, so I didn't pay taxes here or there.

That's routine for US citizens working overseas. I've spent years of my life overseas; I know.

This has nothing to do with residence in one US state vice another. Excepting military personnel, the issues are location of domicile, duration of stay, and location of employer.

Plus, from what I read in the paper, its for three years that he claims Tampa. Where he gets his checks, where he gets his mail, there are many ways he can prove his residence.

Derek Jeter lived in New York City, worked in New York City, spent more time in New York City than in any other place, voluntarily "moved" to New York City in 2004 (there's a legal reason that this is important), and just owns real estate in Florida. Again, that doesn't make Florida his state of residence for taxation.

I posted my feelings on the matter. It's funny how Red Sox fans care about Jeter's tax issues. I personally don't care.

Ahhhhh...everybdy, note the slight semantic difference from his previous quote:

"Personally, I couldn't care any less about this if I tried."

Now it's clarified: Gom doesn't care about Derek Jeter's tax issues. OK...tax-cheating Yankees fans exonerate the Intangible Derek Jeter. Cool.

My perspective hasn't been Jeter vs. Red Sox, it's been Jeter vs. Bonds. My point is, and remains, that this is more significant than Bonds's alleged perjury regarding criminal issues.

I'm not an expert on taxation matters.

As for my taxes, if I could get away with paying ZERO for taxes I would. Good for Jeter. I hope he beats it and doesn't pay a dime. I would say the same for anyone in baseball, even Bonds. I hate the taxation system.

Your bias for those who cheat on their taxes is noted. IRS: note please that the poster posing as Gom cheats on his taxes. The Federal Government knows posters by IP address, and links IP address to individuals. IRS, there is profit in auditing Gom.

Welcome to the real world Bill. The system is fraught with deception. Take a look at the mortgage industry. Stated income loans? Also known as liars loans?

The system is skewed to let those that have the money keep it. I can't believe that you are that naive not to realize this.

Aren't you a bit young and inexperienced to be welcoming me to the "real world," you condescending Yankees fan?

This is the Internet: you don't know who I am. A little consideration of context might've revealed that your words and tone were grossly inappropriate, though.

Anyone who doesn't go to an acocuntant to do their taxes has a fool for a client. I'm sure his accountants will figure out a way to get him out of it.

Perhaps; probably. After all, he could always request trial by jury in New York City. What jury in New York City would find Derek Jeter guilty?

But, if you go back through the thread, my point is just that Jeter is more guilty of bad stuff than Barry Bonds. Both might face trial by jury; neither will likely be convicted.

That doesn't exonerate Jeter ethically. As I've previously posted, though, there are more tax criminals than steroid abusers in our society to defend Jeter. Thank you for making my case.

[rician blast]

What's more deplorable...

Bonds allegedly using PEDs and lieing about it under oath?

Jeter cheating on his taxes?

Mike Vick's recent actions involving dog fights?

Former President Clinton cheating on his wife while in office then looking the American people in the eye and saying "I did not have sex with that woman" then only admitting the affair after the evidence was absolutely clear against him?

IMO, the LEAST offensive to the masses is Bonds...and he potentially could do 30 years?

Jeter fucked not only the government out of tax revenue but his actions, directly or not, potentially impact the "balance" (as if there is any) of the tax system and thus John Q. Public as well.

Vick's actions were disgraceful on so many levels, but you know what? They're animals and that needs to be kept in perspective...disgusting and worthy of punishment, but must be kept in perspective.

Clinton's actions and his lieing to the American public are perhaps the most heinous. Yeah I know, who cares who someone fucks right? I do when its the President of the U.S. and you're supposed to be at the helm of the country's best interests. Yet he got what...nothing?

[a700hitter]

Originally Posted by Gom

I can't see how this can be proven. He works in New York, he lives in Tampa. How can you prove it? He's in New York for 81 games a year. He's around the country for another 81 games. During the off-season, he lives in Tampa. How do you prove this?

They have numerous ways to show if he was in the state. Something as simple as his EZ Pass could be used against him, purchases etc. Also, with regard to disputed tax deficiencies, the taxing authority does not have the burden of proof. Taxing authoritites have a presumption of correctness. It will be up to Jeter to prove that he was out of the state.

[BudLight]

Because NY state is not a wasteful state with the tax payers monies, we should all be concerned -- give me a break.

As for the military comments regarding taxes, if you are a resident of NY state and are stationed in NY state, you pay NY state taxes. If you are stationed outside of NY state you do not. That's fair??? Fuck the NY state tax system, it's as corrupt as Barry Bonds!!!

[rician blast]

Originally Posted by BudLight

Because NY state is not a wasteful state with the tax payers monies, we should all be concerned -- give me a break.

What the State does with the tax revenue is irrelevant. There is a tax code...he allegedly violated it. Time to pay the consequences.

Fuck the NY state tax system, it's as corrupt as Barry Bonds!!!

Corrupt: characterized by improper conduct

By the above definition, Jeter is corrupt.

[Sox Fan on Cape]

Originally Posted by a700hitter

They have numerous ways to show if he was in the state. Something as simple as his EZ Pass could be used against him, purchases etc. Also, with regard to disputed tax deficiencies, the taxing authority does not have the burden of proof. Taxing authoritites have a presumption of correctness. It will be up to Jeter to prove that he was out of the state.

The Tax Reform Act of 1998 says different.

[Gom]

Originally Posted by rician blast

What's more deplorable...

Bonds allegedly using PEDs and lieing about it under oath?

Jeter cheating on his taxes?

Mike Vick's recent actions involving dog fights?

Former President Clinton cheating on his wife while in office then looking the American people in the eye and saying "I did not have sex with that woman" then only admitting the affair after the evidence was absolutely clear against him?

IMO, the LEAST offensive to the masses is Bonds...and he potentially could do 30 years?

Jeter fucked not only the government out of tax revenue but his actions, directly or not, potentially impact the "balance" (as if there is any) of the tax system and thus John Q. Public as well.

Vick's actions were disgraceful on so many levels, but you know what? They're animals and that needs to be kept in perspective...disgusting and worthy of punishment, but must be kept in perspective.

Clinton's actions and his lieing to the American public are perhaps the most heinous. Yeah I know, who cares who someone fucks right? I do when its the President of the U.S. and you're supposed to be at the helm of the country's best interests. Yet he got what...nothing?

My picks..in order of severity:

Vick, a horribly heinous act that will rightfully get him prison time.
Clinton, due to his status as President and lying under oath.
Bonds, for disgracing the most sanctified record in sports.
.
.
.
.
.
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Jeter. For doing something that is estimated 30-40% of Americans do.
Check the link.
http://www.post-gazette.com/pg/07084/772106-28.stm

About the only law that people break with more frequency is speeding. Guess what? I do that too.

I know, you are really happy that that $20 nail was hammered by that $500 hammer in that government building. You pay for it. I'll keep the money.

[Jayhawk Bill]

Originally Posted by Sox Fan on Cape

The Tax Reform Act of 1998 says different.

I'm eager to learn. How does the Federal Tax Reform Act of 1998 protect Derek Jeter with respect to a case brought against him in New York by New York regarding New York taxes?

It would seem that New York state laws would apply...but I haven't yet researched this fully. Could you explain how Jeter is protected?

[Sox Fan on Cape]

I was responding to a700 hitter's statement about burden of proof.