TaxConnections


NFL Superstar Freddie Mitchell Duped Into Tax Fraud



TaxConnections Picture - Cartoon Man In Jail

After taking a plea deal and receiving 37 months in prison for playing a role in a tax fraud scam, Freddie Mitchell presented medical documentation stating he has chronic traumatic encephalopathy (CTE), a possible result of his 8 documented concussions. CTE can have symptoms of memory loss, motor skills impairment, depression, aggressive behavior and confusion. As it is in the research stages, not everyone agrees that CTE can be properly diagnosed unless postmortem. Mitchell clearly states that he did not want a plea deal and yet took one anyway on his attorney’s advice.

This scam involved more than NFL Superstar Freddie Mitchell. It involved an Internal Revenue Service agent making promises while clearly trying to defraud the government. It involved an NFL player with a big ego (something found commonly in professional sports) that had more people saying “yes” to him than clearly offering sound advice.

What do we know about this case?

1. Freddie Mitchell did have concussions.

2. Those concussions could have led to the development of CTE. But, that is not enough to prove bad decision making was caused by CTE and nothing else.

3. An IRS agent was part of this tax fraud scam – and clearly did not get punished enough! Why aren’t we going after the IRS?

4. Never trust an IRS agent.

5. Call an attorney before you sign ANY document.

6. Never let your ego be bigger than your paycheck. People want to take your money!

In accordance with Circular 230 Disclosure

Ronald J. Cappuccio, J.D., LL.M. (Tax), business and tax attorney, has more than 30 years of tax and business law experience. As a lawyer since 1976, admitted to practice before NJ State and Federal Courts, including the US Tax Court and the Court of Federal Claims, I have helped clients from around the U.S. as well as multi-national clients. I have dedicated my life to agitating people – especially the IRS and government functionaries. I have never worked for the IRS and therefore I do not have to worry about them as former colleagues. Fighting the government so you can keep your money is just plain fun for me!

One comment

  1. Ronald – interesting news but wondering why this NFL player expects to be given a “pass” (excuse the pun) on serving jail time given his CTE diagnosis. If memory serves me correctly, a former IL governor named George Ryan was not released from his prison time for aging related medical conditions. Why does an “Big-Time” / “Superstar” NFL player get the possibility of special treatment ?

    Also, what kind of tax fraud was perpetrated by this individual ? Was it strictly non-filing or was there some tax shelter scheme involved ? Where there any tax preparers held accountable in addition to the IRS agent involved ?

    Thanks for your feedback ! Happy Holidays to you & your family !

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