“The three-year sentence sends a loud and crystal-clear message to any would-be tax defier that if you engage in this illegal conduct, you can and will go to prison,” said Nathan Hochman, assistant attorney general for the Justice Department’s tax division.

The case’s lead prosecutor, U.S. Attorney Robert O’Neill, echoed that assessment.

“The courts sent a really clear message that Americans must file and pay taxes,” he said. “If you have a legitimate dispute with the IRS, contact the IRS and dispute what you believe you’re due and owe. You can’t just totally fail to satisfy your legal obligation like Mr. Snipes did.”

Stop overpaying the IRS
Snipes went on trial in January for failing to file income taxes returns between 1999 and 2004, during which he made an estimated $38 million from movie projects such as the popular vampire trilogy Blade. Prosecutors said that Snipes also fraudulently filed for $11 million in refunds on income taxes paid in 1996 and 1997.

Snipes’ attorneys argued that their client innocently fell victim to poor tax advice provided by his two co-defendants, Eddie Ray Kahn and Douglas Rosile.

Kahn and Rosile were both convicted in February on felony charges of tax fraud and conspiracy. They were sentenced yesterday to 10 years and 54 months in jail, respectively.

Snipes was convicted on three misdemeanor counts but was acquitted of serious felony charges, a verdict that was seen as a victory in the eyes of some tax protestors.

However, insurance analyst JJ MacNab, who is working on a book about the tax-protest movement, believes that the sentencing has sent a wake-up call to members of the defiant community, many of whom are small-business owners.

“There are people who are saying that they didn’t argue his case correctly,” she said. “But others realize that if Snipes can’t do it with a team lawyers, how can they?”

In his statement to the court, Snipes apologized for his “mistakes” but steered clear of acknowledging intentional wrongdoing, according to observers.

“[Snipes] said he was sorry for his actions but he never used the word ‘crimes’ and he never used the word ‘tax,’” said Hochman, who was present when U.S. District Judge William Terrell Hodges announced the sentence in Ocala, Fla. “I think it’s an indication that Mr. Snipes, to this day, has not fully accepted responsibility for his actions.”

In addition to the jail time, Snipes, 45, is being charged millions by the IRS for back taxes, penalties and interest. Defense attorney Linda Moreno declined to comment about her client’s sentence, but said that a notice of appeal will be filed within the next few days.

Prosecutor O’Neill said he’s confident the ruling will stand.

Title VII of the Civil Rights Act of 1964 (Title VII) prohibits race, color, religion, sex, and national origin discrimination. Title VII applies to:
employers with fifteen (15) or more employees

Age Discrimination in Employment Act of 1967 (ADEA) prohibits age discrimination against individuals who are forty (40) years of age or older. The ADEA applies to:
employers with twenty (20) or more employees

Title I of the Americans with Disabilities Act of 1990 (ADA) prohibits employment discrimination against qualified individuals with disabilities. The ADA applies to:
employers with fifteen (15) or more employees

Equal Pay Act of 1963 (EPA) prohibits wage discrimination between men and women in substantially equal jobs within the same establishment. The EPA applies to:
most employers with one or more employees

These laws prohibit employment discrimination based on race, color, sex, religion, national origin, age, disability, and prohibit retaliation for opposing job discrimination, filing a charge, or participating in proceedings under these laws.

How do I determine if a business of my size is covered by the EEO laws?

All employees, including part-time and temporary workers, are counted for purposes of determining whether an employer has a sufficient number of employees. An employee is someone with whom the employer has an employment relationship. The existence of an employment relationship is most easily shown by a person’s appearance on the employer’s payroll, but this alone does not necessarily answer the question. Determining whether an employer has enough employees to be covered by these laws is, ultimately, a legal question. This subject is addressed in:

–EEOC Enforcement Guidance on Equal Employment Opportunity Commission & Walters v.
Metropolitan Educational Enterprises, Inc. and,
–Section 2 of the new Compliance Manual on “Threshold Issues.”

Independent contractors are not counted as employees. Determining whether an individual is, under the law, an independent contractor, also is a legal question that may not be as easy to answer as you might think. For more information on how to determine whether a person is an “employee” or an “independent contractor” visit Section 2 of the new Compliance Manual on “Threshold Issues

If you are unsure whether your business is covered, or whether an individual who works for you is covered, you may wish to consult with an attorney.

Who may file a charge of discrimination with the EEOC?

Anyone who believes that his or her employment rights have been violated because of race, color, sex, religion, national origin, age, disability or because of retaliation may file a charge of discrimination with EEOC. By law, EEOC must accept the filing of a charge.

When can a charge of discrimination be filed?

In most geographic areas, a charge must be filed with EEOC within 300 days from the date of the alleged discrimination. In a very small number of areas where a state or local employment discrimination law does not apply, a charge must be filed within 180 days.

Can a small business resolve a charge without undergoing an investigation or facing a lawsuit?

Yes. EEOC has a free mediation program. The program is voluntary and all parties must agree to take part. The mediation process is also confidential. Neutral mediators provide employers and charging parties the opportunity to reach mutually agreeable solutions. If the charge filed against your company is eligible for mediation, you will be notified by the EEOC of your opportunity to take part in the mediation process. In the event that mediation does not succeed, the charge is referred for investigation.

What employment records must I keep?

EEOC Regulations require that employers keep all personnel or employment records for one year. If an employee is involuntarily terminated, his/her personnel records must be retained for one year from the date of termination. Under ADEA recordkeeping requirements, employers must also keep all payroll records for three years. Additionally, employers must keep on file any employee benefit plan (such as pension and insurance plans) and any written seniority or merit system for the full period the plan or system is in effect and for at least one year after its termination.

Under Fair Labor Standards Act (FLSA) recordkeeping requirements applicable to the EPA, employers must keep payroll records for at least three years. In addition, employers must keep for at least two years all records (including wage rates, job evaluations, seniority and merit systems, and collective bargaining agreements) that explain the basis for paying different wages to employees of opposite sexes in the same establishment.

Remember, these requirements apply to all employers covered by Federal anti-discrimination laws, regardless of whether a charge has been filed against the employer. When a charge has been filed, employers have additional recordkeeping obligations.

What reports must small employers file with EEOC?

In addition to material that is connected to the issues raised with the investigation of a charge of discrimination, the EEOC also collects EEO-1 Reports from some employers, regardless of whether a charge has been filed against the company.

Employment Information Report (EEO-1)

An EEO-1 Report is filed annually and provides a breakdown of the employer’s work force by race and gender. Small employers are not required to file EEO-1 reports unless they:

–employ 100 or more employees
–employ 50 or more employees and have Federal contracts totalling $50,000 or more.

The processing of EEO-1 reports filed by employers is handled by the EEOC’s Joint Reporting Committee. Further information on filing EEO-1 reports, including reporting instructions and report forms in various formats, can be obtained by contacting the EEO-1 Joint Reporting Committee at 866-286-6440 (toll free) or e1.techassistance@eeoc.gov.

I received a charge form from the EEOC that says my business violated federal law. How can the EEOC say this before anyone has even talked to me or asked for my side of the story?

While there are a few rare exceptions, ordinarily the charge must be filed by a member of the public who has contacted EEOC and alleged that a company has discriminated against him or her. The fact that the EEOC has taken a charge does not mean that the government is accusing you of discrimination. The charging party has alleged that your company has discriminated against him or her and it is the EEOC’s job to investigate the matter to determine whether there is reasonable cause to believe that discrimination has occurred.

How will I know if a charge of discrimination has been filed against my company?
EEOC will notify the employer within 10 days of receiving a charge. Notification normally includes a copy of the charge briefly identifying the charging party, the basis (e.g., race, religion, sex, etc.) and issue(s) (e.g., hiring, promotion, discharge, etc.) of the allegation, and the date(s) of the alleged discrimination. Ordinarily, a plain language explanation of the EEOC charge process will be included, as well as explanations of the employer’s obligation to retain records pertaining to the charge and of the non-retaliation provisions of the EEOC laws. An invitation to mediate the charge may also be included in the notification package.

What can I expect to happen in an EEOC investigation?

After a charge is filed, you may be asked to provide a statement of position responding to the allegations in the charge. You may also be asked to provide documents or information related to the subject of the EEOC’s investigation. Additionally, the EEOC may ask to visit your worksite or to interview some of your employees. Cooperation with EEOC requests for information is helpful to the EEOC in investigating charges. When an employer refuses to provide information, or does not do so in a reasonably timely manner, the EEOC may issue a subpoena. You may retain an attorney to represent you during the EEOC’s handling of the charge but you are not required to do so.

What records am I required to keep if I receive an EEOC charge?

The EEOC Notice of Charge form that you receive should explain the agency’s record keeping requirements. When an EEOC charge has been filed against your company, you should retain personnel or employment records relating to the issues under investigation as a result of the charge, including those related to the charging party or other persons alleged to be aggrieved and to all other employees holding or seeking positions similar to that held or sought by the affected individual(s).

Once a charge is filed, these records must be kept until the final disposition of the charge or any lawsuit based on the charge. When a charge is not resolved after investigation, and the charging party has received a notice of right to sue, “final disposition” means the date of expiration of the 90-day statutory period within which the aggrieved person may bring suit or, where suit is brought by the charging party or the EEOC, the date on which the litigation is terminated, including any appeals.

My records are not in the format requested by the EEOC. It will be too costly and time-consuming to comply with the request. What should I do?

Talk to the EEOC investigator before submitting information in a format different from that requested or refusing to comply altogether. Explain what business records you have and how you believe you could supply the information in a manner closely resembling the manner requested. Most of these situations can be worked out so that EEOC gets the information it needs without the employer feeling unduly burdened.

The EEOC sent me a Notice of Charge which contains very little information about a claim of discrimination. Nothing was attached and I can’t tell what this is about. What should I do?

The EEOC generally sends notice to employers that a charge has been filed within 10 days after the charge is filed. We may occasionally give you notice of a charge without actually including a copy of the charge. When this happens, ordinarily you need do nothing more until we contact you at a later date. However, if you want more information, call the EEOC office that sent the notice and speak with the staff person assigned to handle the charge to obtain more information.

I believe that the EEOC Charge filed against my company is frivolous. Should I respond?

Yes. You should respond. Under the EEOC’s current procedures, if the EEOC believes the charge is invalid or frivolous, it will dismiss the charge. If the charge was not dismissed by the EEOC when it was received, there is usually some basis for proceeding with further investigation. There are many cases where it is unclear whether discrimination may have occurred and an investigation is necessary. You are encouraged to present the facts available to you that you believe show the allegations are false.

Can I take action against an employee who has filed a charge?

No. The EEOC-enforced statutes contain strong protections against retaliation for having filed an EEOC charge, even if the charge is later dismissed by the EEOC or rejected by a court.

What should I do to prevent retaliation against and preserve relationships with current employee charging parties?

The charge should be treated confidentially. If the charging party is a current employee, make sure no employee retaliates against the person filing the charge. Make clear to employees who file charges that their relationship with the company will not be affected. As to former employees, be sure that the EEOC filing does not affect the nature of any references given.

Does the EEOC sponsor seminars or activities where I can learn more about complying with the equal employment laws?

–EEOC representatives are available, on request and at no cost, to provide information and
answer questions about EEOC laws and procedures through presentations and meetings
with employers and employer groups or organizations. If you are interested, see No-Cost
Outreach. For additional information, contact EEOC’s Local Customized Training Contacts.
–The EEOC’s Technical Assistance Program Seminars (TAPS) are designed to educate
employers and provide technical assistance related to the federal anti-discrimination laws.
TAPS programs are offered across the country on a fee-for-service basis. To find out when
and where EEOC’s TAPS programs will be given in your area, see EEOC Technical Assistance
and Training Programs.
–If you are interested in specific on-site training designed to meet your particular business’
needs and circumstances, EEOC can develop and deliver customized training at your
business location on a fee-for-service basis.

What publications can I order to help me comply with the employment laws?

EEOC publications (including the texts of the laws enforced by the EEOC, facts about employment discrimination, and enforcement guidances and related documents) are available free of charge. You may place an order by using the EEOC Publications Request Form or by contacting the following office:

U.S. Equal Employment Opportunity Commission Clearinghouse
8280 Greensboro Drive, Suite 300
McLean, VA 22102

Fax: (703) 821-2098
or call: 1-800-669-3362 (voice)
1-800-800-3302 (TTY)

Employers who have questions about the laws enforced by EEOC or about compliance with those laws in specific workplace situations may contact one of the following people:

Albuquerque Albert Sanchez albert.sanchez@eeoc.gov 505/248-5210

Atlanta Terrie Dandy terri.dandy@eeoc.gov 404/562-6811

Baltimore Mary Tanner mary.tanner@eeoc.gov 410/209-2721

Birmingham Beverly B. Hinton beverly.hinton@eeoc.gov 205/212-2082

Boston Robert Sanders robert.sanders@eeoc.gov 617/565-3191

Buffalo Elizabeth Cadle elizabeth.cadle@eeoc.gov 716/551-4443

Charlotte Billy Cramon Sanders billy.sanders@eeoc.gov 704/344-6735

Chicago Rita B. Coffey rita.coffey@eeoc.gov 312/353-7254

Cincinnati Wilma Javey wilma.javey@eeoc.gov 513/684-2379

Cleveland Michelle Crew michelle.crew@eeoc.gov 216/522-7651

Dallas Rodney Klein rodney.klein@eeoc.gov 210/281-7666

Denver Patricia McMahon patricia.mcmahon@eeoc.gov 303/866-1344

Detroit Jesse Vidaurri jesse.vidaurri@eeoc.gov 313/226-7635

El Paso Rodney Klein rodney.klein@eeoc.gov 210/281-7666

Fresno Santos Albarran santos.albarran@eeoc.gov 213/894-1045

Greensboro Jose Rosenberg jose.rosenberg@eeoc.gov 336/547-4080

Greenville Patricia Fuller patricia.fuller@eeoc.gov 864/241-4410

Honolulu Timothy Riera timothy.riera@eeoc.gov 808/541-3722

Houston Joe Bontke joe.bontke@eeoc.gov 713/209-3436

Indianapolis PhyllisTucker-Wells phyllis.tucker-wells@eeoc.gov317/226-7469
Jackson Linda Walker linda.walker@eeoc.gov 601/948-8435

Kansas City Jack Vasquez lloyd.vasquez@eeoc.gov 314/539-7944

Little Rock Debra Moser debra.moser@eeoc.gov 501/324-6372

Los Angeles Santos Albarran santos.albarran@eeoc.gov 213/894-1045

Louisville Phyllis Tucker-Wells phyllis.tucker-wells@eeoc.gov 317/226-7469

Memphis Debra Moser debra.moser@eeoc.gov 501/324-6372

Miami Nitza Wright nitza.wright@eeoc.gov 305/808-1791

Milwaukee Maria E. Flores maria.flores@eeoc.gov 414/297-3594

Minneapolis Maria E. Flores maria.flores@eeoc.gov 414/297-3594

Nashville Sarah Smith sarah.smith@eeoc.gov 615/736-5824

Newark Corrado Gigante corrado.gigante@eeoc.gov 973/645-5978

New Orleans Tydell A. Nealy tydell.nealy@eeoc.gov 504/595-2838

New York Bryan White bryan.white@eeoc.gov 212/336-3670

Norfolk Marilyn Booker marilyn.booker@eeoc.gov 757/441-3135

Oakland Michelle Nardella michelle.nardella@eeoc.gov 510/637-3239

Oklahoma City Jack Vasquez lloyd.vasquez@eeoc.gov 314/539-7944

Philadelphia Stephen Cuyjet stephen.cuyjet@eeoc.gov 215/440-2664

Phoenix Krista Watson krista.watson@eeoc.gov 602/640-4995

Pittsburgh Joseph Hardiman joseph.hardiman@eeoc.gov 412/644-2623

Raleigh Billy Cramon Sanders billy.sanders@eeoc.gov 704/344-6735

Richmond Patricia W. Glisson patricia.glisson@eeoc.gov 804/771-2164

San Antonio Rodney Klein rodney.klein@eeoc.gov 210/281-7666

San Diego Santos Albarran santos.albarran@eeoc.gov 213/894-1045

San Francisco Michael Baldonado michael.baldonado@eeoc.gov 415/625-5614

San Jose Hea Jung Atkins heajung.atkins@eeoc.gov 408/291-4236

San Juan Nitza Santos Wright nitza.wright@eeoc.gov 305/530-6024

Seattle Rod Ustanik roderick.ustanik@eeoc.gov 206/220-6850

St. Louis Jack Vasquez lloyd.vasquez@eeoc.gov 314/539-7944

Tampa Sylvia Pouncy sylvia.pouncy@eeoc.gov 813/228-2310

Washington, DC Andrea Okwesa bronwen.okwesa@eeoc.gov 202/419-0729

Or, if you prefer, you may write to EEOC’s Office of Legal Counsel and seek informal guidance.
Written inquiries should be addressed to:

Office of Legal Counsel
U.S. Equal Employment Opportunity Commission
1801 L Street, N.W.
Washington, D.C. 20507