In the latest celebrity tax case, rapper Ja Rule has admitted to failing to pay taxes on approximately $3 million in income and may face up to three years in federal prison. Ja Rule joins the ranks of several other celebrity tax evaders, including Marc Anthony, Wesley Snipes, Abbott and Costello and MC Hammer.
Ja Rule, whose real name is Jeffrey Atkins, is scheduled to be sentenced on June 13 for three counts of tax evasion, with each count carrying up on one year in prison and $100,000 in fines. Under the plea conditions, two counts for unpaid taxes on approximately $1 million in income will be dismissed.
The income in question was earned between 2004 and 2006 from music royalties and live performance-related income. Ja Rule is the sole shareholder of both ASJA Inc. and Rule Tours Inc. He has seen his income drop in recent years to a reported $490,000 in 2008.
Unfortunately, Ja Rule’s legal troubles are not limited to tax evasion. Last December, he pled guilty to attempted criminal possession of a weapon and must serve a two year sentence that will start this year. His attorney, Stacy Richman, will likely file to have the sentences served concurrently.