Lawrence Martin Birk - Tax (Dis)Honesty Movement Leads to Conviction for Log Home Builder

[jcolvin2]

https://www.justice.gov/opa/pr/colorado ... x-evasion

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Friday, July 26, 2019
Colorado Tax Defier Convicted Of Tax Evasion
Owed More than $2 million to the IRS

A Colorado tax defier was convicted of tax evasion yesterday by a federal jury in Denver announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Jason R. Dunn for the District of Colorado.

According to court documents and evidence presented during the one-week trial, Lawrence Martin Birk founded a sole proprietorship, Tarryall River Log Homes LLC, in 2000. He ran the company, which sold and built log homes. For more than twenty years, Birk did not voluntarily pay federal income taxes. After the Internal Revenue Service (IRS) began collection efforts, including visiting Birk at his home, he hired a tax firm to prepare eight years’ worth of delinquent tax returns. However, Birk concealed pertinent information from the tax firm, including over $400,000 of retirement distributions that he funneled through a sham company. After filing his tax returns, which omitted the retirement income, Birk did not pay what the returns claimed was due and owing. Instead, he sent the IRS threatening correspondence that espoused the frivolous tax arguments of known tax defier organizations, including the “We The People” foundation and the “Tax Honesty” movement.

After being notified that the IRS intended to seize money from his bank accounts for taxes owed, Birk took steps to shield his money against the IRS’ collection efforts. Immediately or shortly after depositing funds into his bank account, Birk purchased cashier’s checks to reduce his balance and impede the IRS’ ability to seize the money. Birk’s outstanding tax liabilities, including taxes, interest, and penalties, were over $2 million for 1998 to 2005. He has not filed returns or made any tax payments for the 2006 through 2018 tax years.

Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Dunn commended special agents of IRS-Criminal Investigation, who conducted the investigation, as well as Department of Justice Tax Division Assistant Chief Elizabeth C. Hadden and Trial Attorney Christopher Magnani, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Topic(s):
Financial Fraud
Tax
Component(s):
Tax Division
USAO - Colorado
Press Release Number:
19-813

[Famspear]

A looney called Larry M. Birk
Obligations for taxes did shirk.
“Tarryall River Log”
Was a cheat -- and a hog,
And the tax protest scheme didn’t work.

‘Though the IRS paid him a visit,
He thought: “Tax liability? What is it?”
So, he hid lots of money--
Which wasn’t too funny.
Now, the jerk, Mister Birk, faces prison.

[notorial dissent]

The convicted him, wonder what the likelihood of actually collecting what is owed?

[jcolvin2]

Sentenced to 60 months in prison.

https://www.justice.gov/opa/pr/colorado ... on-evasion

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Thursday, October 31, 2019
Colorado Tax Defier Sentenced to Prison for Evasion
Owes More Than $3.5 Million to the IRS

A homebuilder and the owner of Tarryall River Log Homes was sentenced to 60 months in prison yesterday for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and evidence presented during the trial, Lawrence Martin Birk founded a sole proprietorship, Tarryall River Log Homes LLC, in 2000. Although the company, which sold and built log homes, was profitable, Birk did not voluntarily pay federal taxes on its income. When the Internal Revenue Service (IRS) began collection efforts, including visiting Birk at his home, he hired a tax firm to prepare eight years’ worth of delinquent tax returns. However, Birk concealed pertinent information from the tax firm, including over $400,000 of retirement distributions that he funneled through a sham company. After filing his delinquent tax returns, which omitted the retirement income, Birk still did not pay what the returns acknowledged was due and owing. Instead, he sent the IRS threatening correspondence that espoused the frivolous tax arguments of known tax defier organizations.

After being notified that the IRS intended to seize money from his bank accounts for taxes owed, Birk took steps to shield his money against the IRS’ collection efforts. Immediately or shortly after depositing funds into his bank account, Birk purchased cashier’s checks to reduce his balance and impede the IRS’s ability to seize the money. Birk’s outstanding tax liabilities, including taxes, interest, and penalties, were over $2 million for 1998 to 2005. He has not filed returns or made any tax payments for the 2006 through 2018 tax years. To date, his debt is more than $3.5 million.

In addition to the term of imprisonment, Judge Blackburn also ordered Birk to serve three years of supervised release and to pay restitution to the IRS in the amount of $1,858,826.

Principal Deputy Assistant Attorney General Zuckerman commended the IRS agents who conducted the investigation, and Tax Division Assistant Chief Elizabeth C. Hadden, Trial Attorney Christopher Magnani, and Paralegal Specialist Saundra Burgess, who prosecuted the case.

Topic(s): Financial Fraud, Tax
Component(s): Tax Division
Press Release Number: 19-1178
Updated October 31, 2019

[TBL]

Only $1.8+MM restitution on a $3.5 MM debt? Is it normal to reduce liability amounts when prison time is handed out?

[AndyK]

If I recall correctly, the restitution does not eliminate the tax debt.

[jcolvin2]

Other than saying that the IRS liability was almost certainly not adjusted because of the conviction, it is difficult to explain the origins of the numbers in the press release without taking a deep dive into the docket. It is possible that the $3.5 million relates to all years (beyond just the years of conviction), and the restitution only relates to the limited set of years charged in the indictment. Also, in "evasion of assessment" cases (as distinct from "evasion of payment" cases), criminal restitution does not include interest and penalties.

[jcolvin2]

After Birk failed to report to BOP for his prison sentence, the DOJ indicted him for failing to surrender:

https://www.justice.gov/opa/pr/colorado ... n-sentence

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Friday, February 21, 2020
Colorado Tax Evader Indicted for Not Reporting to Serve Five Year Prison Sentence
A federal grand jury in Denver, Colorado, returned an indictment yesterday charging Lawrence Martin Birk with failing to surrender to serve his sentence, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

Birk was convicted by a jury in July 2019 of tax evasion. According to court documents and evidence presented at trial, Birk founded a sole proprietorship, Tarryall River Log Homes LLC, which sold and built log homes. Although the company was profitable, Birk did not voluntarily pay federal taxes on its income. When the Internal Revenue Service (IRS) began collection efforts, Birk hired a tax firm to prepare eight years’ worth of delinquent tax returns, but concealed from the firm $400,000 of retirement distributions. Even after filing returns, Birk still did not pay what the returns acknowledged he owed in taxes. Instead, he sent the IRS threatening correspondence and sought to impede its efforts to seize money from his bank accounts. He did not file returns or make any tax payments for 2006 through 2018.

Based on this conduct, on Oct. 30, 2019, U.S. District Judge Robert E. Blackburn sentenced Birk to 60 months in prison, to serve three years of supervised release, and to pay restitution to the IRS in the amount of $1,858,826.

According to today’s indictment, although Birk was ordered to report to prison in November 2019 to serve his sentence, he fled and remained a fugitive until his recent arrest. If convicted, Birk faces up to five years’ imprisonment for his failure to appear, in addition to the 60 month term of imprisonment previously imposed.

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Principal Deputy Assistant Attorney General Zuckerman commended the IRS special agents and United States Marshall Service who conducted the investigation, as well as Department of Justice Trial Attorneys Elizabeth C. Hadden and Christopher Magnani, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Topic(s):
Financial Fraud
Tax
Component(s):
Tax Division
Press Release Number:
20-214
Updated February 21, 2020

[HardyW]

A looney called Larry M. Birk
Obligations for taxes did shirk.
“Tarryall River Log”
Was a cheat -- and a hog,
And the tax protest scheme didn’t work.

‘Though the IRS paid him a visit,
He thought: “Tax liability? What is it?”
So, he hid lots of money--
Which wasn’t too funny.
Now, the jerk, Mister Birk, faces prison.

That looney we heard of, called Birk
Yet more obligation did shirk
Told "For you it's now prison",
He said "O no it is'n:
You sure won't find me where I lurk."

Three months later, and now he's been sighted,
Arrested, arraigned and indicted.
Now he's in more trouble,
His sentence will* double
And Principal Deputy Assistant Attorney General Richard E. Zuckerman is delighted.

* An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

[jcolvin2]

Birk pleads guilty to fleeing and being a felon in possession (of several firearms and much ammo).

https://www.justice.gov/opa/pr/colorado ... n-sentence

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Friday, June 19, 2020

Colorado Tax Evader Pleads Guilty to Fleeing to Avoid Serving Five Year Prison Sentence
Fled Colorado with Fully Automatic Assault Rifle, Body Armor, and Gas Masks
A Colorado tax defier pleaded guilty yesterday to failing to surrender to serve his prison sentence for tax evasion and illegal possession of a firearm, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

Birk was convicted by a jury in July 2019 of tax evasion. According to court documents and evidence presented at trial, Birk founded a sole proprietorship, Tarryall River Log Homes LLC, which sold and built log homes. Although the company was profitable, Birk did not voluntarily pay federal taxes on its income. When the Internal Revenue Service (IRS) began collection efforts, Birk hired a tax firm to prepare eight years’ worth of delinquent tax returns, but concealed from the firm $400,000 of retirement distributions. Even after filing returns, Birk still did not pay what the returns acknowledged he owed in taxes. Instead, he sent the IRS threatening correspondence and sought to impede its efforts to seize money from his bank accounts. He did not file returns or make any tax payments for 2006 through 2018.

Based on this conduct, on Oct. 30, 2019, U.S. District Judge Robert E. Blackburn sentenced Birk to 60 months in prison, to serve three years of supervised release, and to pay restitution to the IRS in the amount of $1,858,826.

According to court documents and statements made in court, Birk was ordered to report to prison in November 2019 to serve his sentence. Instead, he fled Colorado with a fully automatic assault rifle, two pistols, over a dozen loaded magazines, hundreds of additional rounds of ammunition, ballistic helmets, ballistic vests, and gas masks. Birk remained a fugitive until he was caught and arrested in Florida in January 2020 and has been in custody ever since.

Judge Blackburn scheduled sentencing for Sept. 10, 2020. At sentencing, Birk faces a maximum sentence of five years’ imprisonment for his failure to appear, and ten years’ imprisonment for possession of a firearm after being convicted of a felony, in addition to the 60 month term of imprisonment previously imposed.

Principal Deputy Assistant Attorney General Zuckerman commended the IRS special agents and United States Marshall Service who conducted the investigation, as well as Department of Justice Trial Attorneys Elizabeth C. Hadden and Christopher Magnani, who are prosecuting the case.
Topic(s):
Financial Fraud
Tax
Component(s):
Tax Division
Press Release Number:
20-562

[Baidn]

Seems like an honors graduate of the Mike Parsons School of Law. Always remember after being convicted the best course of action is to hatch an inept scheme to evade custody and start stockpiling weapons/ammo illegally. The government will be so appreciative of the open and shut case you've built for them they'll probably just let the whole thing go. . I look forward to when/if he gets out and joins Ed Browns new tinfoil hat brigade in the "Spartacus Project"

[notorial dissent]

Birk was to all appearance good at what he did, I 've seen some of it over time and they seemed to be good quality and I 've never heard of any complaints. That being said, he was also a loon of the first water and his paranoia and rage seemed to build and get worse. I don't think I ever remember his name being mentioned in connection with any of the local loonosphere. Basically lone loon.

[jcolvin2]

He who fights and runs away will live to spent an additional 78 months in jail.

https://www.justice.gov/opa/pr/colorado ... n-sentence

Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Friday, October 9, 2020
Colorado Tax Evader Sentenced to Prison for Fleeing to Avoid Previously Imposed Prison Sentence
Fled Colorado with Fully Automatic Assault Rifle, Body Armor, and Gas Masks

Colorado tax defier Lawrence Martin Birk was sentenced to an additional 78 months in prison for failing to surrender to serve his previously imposed tax evasion prison sentence and for unlawfully possessing firearms, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

“Let the message from today’s sentencing be loud and clear: the Tax Division will vigorously pursue and prosecute those who defraud the United States and flee punishment, wherever they may go,” said Principal Deputy Assistant Attorney General Zuckerman.

Birk, 66, was found guilty of tax evasion by a jury in July 2019. According to court documents and evidence presented at trial, Birk founded a sole proprietorship, Tarryall River Log Homes LLC, which built and sold log homes. Although the company was profitable, Birk did not voluntarily pay federal taxes on its income. When the IRS began collection efforts, Birk hired a tax firm to prepare eight years’ worth of delinquent tax returns, but concealed from the firm $400,000 of retirement distributions. Even after filing returns, Birk still did not pay what the returns acknowledged he owed in taxes. Instead, he sent the IRS threatening correspondence and sought to impede its efforts to seize money from his bank accounts. He did not make any voluntary tax payments for 2006 through 2018.

Based on this conduct, on Oct. 30, 2019, U.S. District Judge Robert E. Blackburn sentenced Birk to 60 months in prison, to serve three years of supervised release, and to pay restitution to the IRS in the amount of $1,858,826.

Birk was ordered to report to prison to begin serving his sentence in November 2019. Instead, he fled Colorado with a fully automatic assault rifle, two pistols, over a dozen loaded magazines, hundreds of additional rounds of ammunition, ballistic helmets, ballistic vests, and gas masks. Birk remained a fugitive until he was caught and arrested in Florida in January 2020 and has been in custody ever since.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, the U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, who conducted the investigation, and Trial Attorney Christopher Magnani, who prosecuted the case. Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

Topic(s):
Financial Fraud
Tax

[Gregg]

So he turned five years into eleven and a half.

Someone please tell me this is consecutive.

[jcolvin2]

So he turned five years into eleven and a half.

Someone please tell me this is consecutive.

Yep. You get consecutive sentencing when you fail to report and then bug out to Florida, armed to the teeth.

[TBL]

I'm on the fence, is this another "Florida Man" story or not?

[Foggy]

"Attempted" Florida Man.

[Frater I*I]

"Attempted" Florida Man.

Something seems familiar about this poster here....just can't place my finger on it...

[Foggy]

Who, me?

Quatloos and Fogbow are twin brothers by different mothers. It's our solemn obligation to support each other.

I've been a member for several years, and I may start spending a bit more time here. Y'all are following people that we aren't, but should be. We don't have a thread on Birk, or some of the others I've seen lately.

[noblepa]

So he turned five years into eleven and a half.

Someone please tell me this is consecutive.

Yep. You get consecutive sentencing when you fail to report and then bug out to Florida, armed to the teeth.

A concurrent sentence, for skipping out after sentencing, wouldn't be much of a deterrent, would it?

The only way it is a deterrent is if the act of running greatly increased the time served.