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THE HEAT IS ON FOR MR. BIGGS

November 01, 2005

It was a great life while it lasted, but it looks like the standard of living for R&B singer Ronald Isley, "AKA Mr. Biggs," is about to decline drastically. A federal jury yesterday convicted the lead singer of the Isley Brothers of five counts of tax evasion. The charges covered the period 1997-2002. From the noted tax law site E! Online:

Jurors deliberated for a day and a half before rendering their verdict in the trial, which stretched over three weeks. The panel was apparently swayed by a steady stream of prosecution evidence that included documents showing the "It's Your Thing" singer hiding homes and a yacht under the name of his former wife and cashing royalty checks belonging to his late brother, O'Kelly Isley.

It doesn't look like he was exactly shy about it:

During the trial, IRS officials said Isley tried to further avoid taxes by asking to be paid in only cash for performances between 1997 and 2002--amounts that added up to around $12 million, per California's CNS News Service. The IRS also claimed Isley bought personal cars using a business account and paid band members in cash to keep transactions off the books.

Mr. Isley made a gamble with a great big downside. Assuming his combined federal and state rate was 40%, the upside of not getting caught was saving $4,800,000.

The downside?

- Up to 26 years in prison when he is sentenced May 9. It will likely be a shorter sentence under federal guidelines, but he will surely do some time.

- Full payment of the tax, with interest.

- Criminal tax fines of hundreds of thousands of dollars.

- Civil fraud penalties of 75% of the amount evaded.

- State prosecution in California or Missouri, where he owned homes.

- Enormous legal bills.

While we have no way of knowing for sure, we wouldn't be surprised if Mr. Isley had failed to amass much in the way of savings to cover these costs. It probably makes him want to Shout.

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