TP named Gross owes $144,000. Really.

[Demosthenes]

Thursday, September 18, 2008
Brighton man sentenced 21 months for tax evasion
Paul Egan / The Detroit News

DETROIT -- A Brighton electrician who believed he did not have to pay federal income tax was sentenced to 21 months in prison in federal court Thursday.

Brent Gross, 46, will also have to make arrangements to pay the Internal Revenue Service about $144,000, said U.S. District Judge Avern Cohn.

"I'm not sure that you've learned your lesson, that you're now prepared to fall in line with millions of other Americans who cooperate in paying their income tax," Cohn told Gross at a sentencing hearing in Detroit.

"If people begin to monkey with that system, there's a danger, if it goes too far, the government may have difficulty functioning."

A jury convicted Gross in 2007 of a seven-count indictment that alleged income tax evasion, filing false tax returns, and providing the IRS with a bogus "bill of exchange" to partially pay the taxes he owed.

According to documents filed in the case, Gross in 2000 filed paperwork with his employer, High Gate Electric Company, saying he was exempt from having federal income taxes withheld from his pay of about $80,000 a year.

He didn't file tax returns for the years 2001 through 2003 and for 2000 filed a return that said he had no taxable income, federal prosecutors said. He also filed amended returns for the years 1997 through 1999 and sought refunds for more than $28,000 in federal income tax he had already paid.

Jerold W. Barringer, Gross's Nokomis, Ill., attorney, said Gross was told by representatives of various tax protest groups that he was not legally required to pay federal income tax.

"It wasn't good advice," Barringer said.

Gross, who will be allowed to report to federal prison when a cell is ready for him, will be under federal supervision for three years after he gets out of prison, Cohn said.

Cohn dismissed as "frivolous" a motion filed this week by Barringer saying the federal courts did not have jurisdiction in the case. The filing of that motion "doesn't suggest to me that you've learned your lesson," Cohn told Gross.

Gross said nothing at his sentencing hearing.

[Lambkin]

Jerold W. Barringer, Gross's Nokomis, Ill., attorney, said Gross was told by representatives of various tax protest groups that he was not legally required to pay federal income tax.

"It wasn't good advice," Barringer said.

I guess Whitey's attorney recovered from his indisposition and may be ready for next month's entertainment.

[jg]

He didn't file tax returns for the years 2001 through 2003 and for 2000 filed a return that said he had no taxable income, federal prosecutors said. He also filed amended returns for the years 1997 through 1999 and sought refunds for more than $28,000 in federal income tax he had already paid.

Do we know (or can we find out) what flavor of koolaid made him say he had no taxable income?

Any guess of the reason (other than statute of limitations) why 2004 and later are not included in the case?

Curious minds would like to know.

[Nikki]

He didn't file tax returns for the years 2001 through 2003 and for 2000 filed a return that said he had no taxable income, federal prosecutors said. He also filed amended returns for the years 1997 through 1999 and sought refunds for more than $28,000 in federal income tax he had already paid.

Do we know (or can we find out) what flavor of koolaid made him say he had no taxable income?

Any guess of the reason (other than statute of limitations) why 2004 and later are not included in the case?

Curious minds would like to know.

According to a melon-hatted cat:

Brent Gross: In July, 2007, this ARL client was convicted on three counts of tax evasion, three counts of filing false returns, and one count of passing a fictitious Bill of Exchange.

[Demosthenes]

______________________________________________________________________
FOR IMMEDIATE RELEASE TAX
TUESDAY, SEPTEMBER 23, 2008 (202) 514-2007
http://WWW.USDOJ.GOV TDD (202) 514-1888
TWO MEN FROM MICHIGAN AND TEXAS
FACE FEDERAL JUDGES FOR TAX-RELATED CHARGES
Justice Department Strives to Prosecute Fraudulent Tax Defiers
WASHINGTON – Brent Gross and Clifford Leroy Kidd faced federal judges in Michigan and Texas this past week for tax-related charges, the Justice Department and Internal Revenue Service (IRS) announced today. Gross’ and Kidd’s cases were prosecuted under the Tax Division’s National Tax Defier Initiative.
On Sept. 18, 2008, Gross, of Brighton, Mich., was sentenced by U.S. Judge Avern Cohn in Detroit to 21 months in prison for tax fraud. Gross was convicted in July 2007 of three counts of tax evasion, three counts of filing false tax returns and one count of passing a fictitious financial instrument. The evidence presented at trial showed that Gross, an electrician, became a client of American Rights Litigators (ARL), which was later known as Guiding Light of God Ministries. ARL was a Florida organization that sold schemes to help its customers defy United States tax laws. While an ARL customer, Gross stopped filing all federal and state tax returns for the years 2001 through 2003.
The evidence at trial showed that Gross provided his employer with two false W-4 forms that stated he was exempt from all withholdings. In addition, the evidence showed that Gross attempted to obtain refunds for taxes he paid in 1997 through 1999 by filing false amended tax returns showing “zero income” during those years. In October 2003, Gross also attempted to pay thousands of dollars in outstanding IRS penalties and interest by sending to the IRS a fictitious financial instrument known as a bill of exchange that he purchased from ARL for $100.
On Sept. 19, 2008, Kidd, of Monahans, Texas, pleaded guilty before U.S. Judge Sam Sparks in Austin, Texas, to one count of corruptly endeavoring to impede the IRS. As part of his plea, Kidd admitted to, among other things, filing or attempting to file false federal income tax returns or other documents in his name that did not report approximately $6.5 million in gross receipts from his crop-dusting business for tax years 1996 through 2005. Kidd had previously been indicted by a federal grand jury in December 2007.
According to the indictment and evidence presented at the change of plea hearing, Kidd joined ARL in 1997. Kidd obstructed the IRS in the assessment and collection of his taxes and those of his wife in part by filing false federal income tax returns in his name, causing the filing of false federal estate and trust returns in the name of his wife, and by filing false 1099 forms with the IRS. The tax loss relative to Kidd’s conduct was in excess of $75,000. As part of the plea agreement, Kidd agreed to cooperate fully with the IRS, to file accurate tax returns for all outstanding years and to become current in the payment of his tax obligations. Judge Sparks has scheduled Kidd’s sentencing for Jan. 9, 2009, in Austin. Kidd faces a maximum of three years in prison and a $250,000 fine.

“The events this past week should be a sign to tax defiers across the country that frivolous arguments and bogus schemes do not work," said Nathan J. Hochman, Assistant Attorney General of the Justice Department's Tax Division. “Under the National Tax Defier Initiative, the Tax Division continues to vigorously enforce federal tax laws against tax defier conduct throughout the nation.”

“The IRS reminds taxpayers that getting involved in an anti-tax scheme carries a heavy price,” said Eileen Mayer, Chief, IRS Criminal Investigation. “The courts have continuously held that these anti-tax arguments have no merit.”
Assistant Attorney General Hochman commended and thanked the IRS special agents who assisted in these two cases and the Justice Department trial attorneys who prosecuted these cases. Gross’ case was prosecuted by Tax Division trial attorneys Jeffrey McLellan and Kenneth Vert. Kidd’s case was prosecuted by Tax Division trial attorney Robert Kemins and Assistant U.S. Attorney Gerald C. Carruth of the U.S. Attorney’s Office for the Western District of Texas.
More information about the Justice Department’s Tax Division, including its tax enforcement efforts against ARL and its customers, may be found at http://www.usdoj.gov/tax.

[Evil Squirrel Overlord]

Gross... 144 Too funny.