A Tax Defier Is Convicted (3/26/13)

While I have not represented so-called tax protestors or tax defiers -- persons wrapping their tax cheating in a cloak of feigned patriotic duty or constitutional right -- they are an important part of the tax landscape.  Some of the seminal cases in the criminal tax arena have involved such misguided taxpayers (or, more descriptively, nontaxpayers).  DOJ Tax announced yesterday the conviction of yet another tax defier, on James Timothy Turner, aka Tim Turner.  The press release is here.

Key Excerpts are:

Self-Proclaimed “President” of Sovereign Citizen Nation Convicted in Alabama of Federal Tax Crimes 

A federal jury in Montgomery, Ala., found James Timothy Turner, also known as Tim Turner, guilty late Friday of conspiracy to defraud the United States, attempting to pay taxes with fictitious financial instruments, attempting to obstruct and impede the Internal Revenue Service (IRS), failing to file a 2009 federal income tax return and falsely testifying under oath in a bankruptcy proceeding, the Justice Department, the IRS and the FBI announced today. 

Based on the evidence introduced at trial and court filings, Turner, the self-proclaimed “president” of the so-called sovereign citizen group “Republic for the United States of America” (RuSA), traveled the country in 2008 and 2009 conducting seminars teaching attendees how to defraud the IRS by preparing and submitting fictitious “bonds” to the United States government in payment of federal taxes. Although the evidence at trial revealed the bonds are fictitious and worthless, witnesses testified that Turner used special paper, financial terminology and elaborate borders in an effort to make them look “real” and more likely to succeed in defrauding the recipient. Turner was convicted of sending a $300 million “bond” in his own name and of aiding and abetting others in sending fifteen other “bonds” to the Treasury Department to pay taxes and other debts.

The evidence at trial also established that Turner taught people how to file retaliatory liens against government officials who interfered with the processing of fictitious “bonds.” Turner filed a purported $17.6 billion maritime lien in Montgomery County, Ala., Probate Court against another individual. Finally, evidence presented at trial demonstrated that the FBI began an investigation after Turner and three other individuals sent demands to all 50 governors in the United States in March 2010 ordering each governor to resign within three days or be “removed.” 

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“These sovereign citizen groups use these retaliatory tax liens and fraudulent tax schemes as weapons against the United States and its citizens,” stated Acting U.S. Attorney Sandra J. Stewart.  

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Turner remains in federal custody pending sentencing. Turner faces a potential maximum prison term of 164 years, a maximum potential fine of $2,350,000 and mandatory restitution.

The press release contains quotes from the players on the prosecution side designed to send a message to the community of persons who behave or are tempted to behave by flouting their tax obligations.