Defiant Tax Protester Gets Seven Year Sentence

Star Telegram.com ^ | 4-30-04 | Toni Heinzl

[Central Scrutiniser]

Defiant tax protester gets seven-year sentence

By Toni Heinzl

FORT WORTH - He calls himself a "Christian patriot" and a "political prisoner."

Convicted in January on 29 counts of violating U.S. income tax laws, Bedford businessman Richard Simkanin remained defiant in his anti-government stance at his sentencing Friday.

Simkanin, 59, told U.S. District Judge John McBryde that after spending thousands of hours studying federal tax laws, the Constitution and the Declaration of Independence, he concluded that he did not agree with the tax laws.

But McBryde had heard enough. Going beyond federal sentencing guidelines, McBryde sentenced Simkanin to seven years in prison and ordered him to pay $302,000 in restitution to the government.

In explaining the tough sentence, McBryde cited Simkanin's history of radical anti-government beliefs and his "contempt and disrespect" for the federal government and the federal courts.

"He and those who share his views have a cultlike belief that laws that are generally accepted by citizens of the United States are not applicable to them," McBryde said. "The defendant has entrenched himself in anti-government groups."

McBryde said Simkanin would continue to violate income tax laws. The judge recalled that Simkanin threatened to kill federal judges and that he surrendered his Texas driver's license but continued to drive with a home-made ID card.

On Jan. 7, a federal jury convicted Simkanin on 10 felony counts of failing to withhold about $139,000 in taxes from employees' wages at his company, Arrow Custom Plastics, and 15 felony counts of filing false tax refund claims for about $235,000.

He was also found guilty of four misdemeanor counts for failing to file individual income tax returns from 1998 to 2001. Simkanin had an estimated gross income of about $410,000 during these years, prosecutors said.

Arch McColl, the Dallas lawyer representing Simkanin, said he would appeal. McColl had asked for a sentence of 41 months at the low end of the federal guidelines. He described Simkanin as a non-conformist American in the tradition of Henry David Thoreau.

"He has a sincere, well thought-out position that is at odds with the government position," McColl said. "Reasonable people disagree about the tax laws. My client is an American citizen who, like Thoreau, walked to the beat of a different drummer."

But prosecutors pointed to Simkanin's long history of law-breaking, saying the last time he filed complete individual and corporate federal income tax returns dates back to the mid-1990s.

"We're going to have chaos in this country if individual citizens are allowed to decide unilaterally which laws are constitutional and which aren't," Assistant U.S. Attorney David Jarvis said. "The sentence for Mr. Simkanin was quite severe and appropriate."

Jarvis noted that Simkanin's defiance of the federal courts continued even after his conviction in January.

In a court judgment entered March 11, Simkanin and Arrow Custom Plastics' new owner, James Keffer, to whom he sold the business Feb. 17, agreed to file employment tax returns for the years 2000 through 2003 within 30 days. The judgment was issued by McBryde in a civil action filed by tax attorneys for the Justice Department in December to force Simkanin to comply with tax laws.

But the requested tax documents were not filed by the deadline, government lawyers said in a motion on April 21, asking McBryde to hold Simkanin and Keffer in contempt.

Simkanin rose to fame in tax protester circles -- and gained the attention of the IRS -- in March 2001 when he appeared in a full-page ad in USA Today with a group of like-minded citizens who announced their opposition to the federal income taxes. Later that year, prosecutors sent Simkanin a target letter notifying him that he was under investigation.

The group behind the ad, We the People, soon portrayed Simkanin as a martyr for the cause of freedom from IRS tyranny.

While under investigation, Simkanin posted a warning on his Web site that spoke of the "fury of a fire" that would consume his adversaries. He wrote to the Treasury secretary that he had repatriated himself from the United States to the "Republic of Texas." He vowed to ignore the laws of the United States.

While tax protesters from the We the People group crowded McBryde's courtroom during the trial, hardly a handful of supporters showed up for his sentencing.

Wearing an orange jail jumpsuit and a blue jacket, Simkanin invoked Scripture, James 5:4. In his view, the passage means that a laborer's wages are withheld through fraud.

His face showed an expression of defiance and sadness. He expressed no remorse for his actions but regretted the effect of his prison sentence on his severely ill wife, Carole.

"I do apologize to my wife for what she will go through in my absence," Simkanin said.

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[Central Scrutiniser]

Uber Kook, Patriot movement nutcase whackjob. I'm sure all of his followers are busy plotting overthrows of the government tonite. LOL

[John Thornton]

Simkanin, 59, told U.S. District Judge John McBryde that after spending thousands of hours studying federal tax laws, the Constitution and the Declaration of Independence, he concluded that he did not agree with the tax laws.

Well that settles it then. Why did they even need a trial?

[Central Scrutiniser]

There was a trial, he was found guilty. If you want to contribute to an appeal, go for it!

[natewill]

Oh, no!! A sheeple that thinks for himself! Put him out of his misery!

Look, at the risk of being called a whackjob myself, I've read case law, constitution, books by former IRS agents, and their (the fedral gubmint's)story doesn't match reality. When, when, when are people going to stand up to this financial tyranny and stop defending the IRS and it unethical and unconstitutional laws. Am I the only one who has heard, seen, and participated in shoving it to the IRS? They are a joke!

[sinkspur]

Mr. Richard Simkanin has sacificed greatly to provide an opportunity for US ciizens to throw off the chains of Federal tyranny.

Uh huh. The cretin threatened to kill a federal judge.

He failed to withhold taxes from his employees pay checks, thus exposing them to federal liability.

General population for this boy.

[Tench_Coxe]

I hear a lot of this. However, if one truly believes this, one should be willing to be imprisoned and lose everything. Problem is, in order for it to change, you will need a lot of people willing to do so.

[sinkspur]

When, when, when are people going to stand up to this financial tyranny and stop defending the IRS and it unethical and unconstitutional laws.

The IRS doesn't make laws; it enforces them.

Your beef is with Congress. And Congressmen.

[natewill]

Not all US citizens embrace the slavery you have become so accustomed to.

It seems that there is a disappointingly large number of Freepers that are eager to lick boots and wear chains! If we accept this tyranny, it will only spread.

[Central Scrutiniser]

Yeah, sure, tyranny, shredding the constitution, yadda yadda yadda. He is a kook, he knowingly broke the law, flaunted it, hired an idiot attourney, sided with the patriot group ultra right wing christian identity movement, and threatened a judge.

I'd call that the actions of a major league dumbass.

[Central Scrutiniser]

Seems there is an equal number of folks that want to build a bunker and prepare for armed revolution. Tax Protestors lose, and even worse, the scam artists that sell the BS about not paying taxes are profiting off of the ignorant.

[natewill]

The IRS doesn't make laws; it enforces them.

When was the IRS, domiciled in Puerto Rico, made a member of the Executive branch?

[sinkspur]

When was the IRS, domiciled in Puerto Rico, made a member of the Executive branch?

It's part of the Treasury Department. Which reports to the Attorney General.

[katz]

All he needs is a pardon from GWB. Kinda like the Rich pardon only smaller.

That will get the unwashed lathered up.

[John Thornton]

As someone who has appeared before the Honorable John McBryde, I can second your description of this defendant as a "major league dumbass." McBryde is not someone who suffers fools gladly.

[ikka]

He could have just used all the loopholes that are available and not paid anything in taxes anyways. And I read James 5:4 just the other night... his interpretation is nuts.

I agree the IRS should be destroyed and that there are questions over the ratification of the 16th Amendment. But until enough people even wake up to figuring that part out there is little chance of breaking it up.

Fed Judges in particular are there to protect the govt, NOT YOU.

[sinkspur]

You picked a broad who you could only stand for six months?

What does that say about you?

[steplock]

Kissing up to the IRS?

To relate an interesting story...

I have been a thorn in the side of ark communist legislators (of BOTH parties) for the past couple of years. A 'republican' representative from Maumelle, Ark sent an email to the hardest communist in El Dorado, Ark in reference to a mass e-mailing I made about their, in effect, legalizing terrorist organizations in arkansas...

http://www.gohotsprings.com/focus/modules.php?op=modload&name=News&file=article&sid=316 (see (5) )

anyway - this 'republican' mistakenly hit "reply to all" so I received a copy of the email that asked "What can we do about this person?"

About 2 months later, I fould out WHAT they could do when I received a letter from the IRS stating they had changed their mind about a ruling they made (at my request) concerning disability insurance payments that I had I reimbursed the insurance company after I spent a year in the hospital. (4 years ago!)

They decided that it didn't matter about the reimbursement since I had 'possession' of the money, therefore the use of it, therefore I have to pay tax, interest and penalty.

For good measure --- all my tax credits were also declared invalid because the return was declared in error, so they added extra there also.

Nice thing to have happen to you when you are 100% disabled and trying to live off disability payments.

It will take over 20% of what's left of my IRA account to pay off these crooks.

[FReepaholic]

>>...e failed to withhold taxes from his employees pay checks...<<

I've always wondered why business owners must act as the government's tax collectors. They're not compensated for the work yet are bound by law to do it.

(actually I DO know why they have to do it....because the people would revolt if they had to it themselves.)

[Bamabunker]

You tell me, you seem to be the prophet.

[sinkspur]

I've been married for 26 years. I have no idea why anybody would marry for six months.

[Bamabunker]

You picked a broad who you could only stand for six months?
What does that say about you?


This is where your 26 years of prophetic experience will come in handy. So tell me about me?

[Blood of Tyrants]

And you REALLY believe that the outcome wasn't determined before the trial ever began? Here is a clue: THE JUDGE WORKS FOR THE GOVERNMENT!

[natewill]

Here are some links for income tax info.

Real Truth Archives. And especially this one Tax Evasion Video

My favorite download is the video where the comissioner of the IRS is asked a direct question as to whether or not there is a law requiring a citizen to pay income taxes. His response, and the fact that his veteran-IRS-employee sidekick has to come in to defend, is simply dumbfounding.

Go on, educate yourself. I dare you!

[sinkspur]

I don't know you.

Forget it.

[ancient_geezer]

If we accept this tyranny, it will only spread.

Then address the souirce of the poison, Congress.

You are so busy fighting the cape, that you miss the matador.

Only Congress that has the authority to change the statutes you complain of.

 

PACIFIC INS. CO. v. SOULE, 74 U.S. 433 (1868),7 Wall. 433

• "Congress may prescribe the basis, fix the rates, and require payment as it may deem proper. Within the limits of the Constitution it is supreme in its action. No power of supervision or control is lodged in either of the other departments of the government."

Springer v. United States(1880), 102 U.S. 586

"The central and controlling question in this case is whether the tax which was levied on the income, gains, and profits of the plaintiff in error, as set forth in the record, and by pretended virtue of the acts of Congress and parts of acts therein mentioned, is a direct tax."

"Our conclusions are, that direct taxes, within the meaning of the Constitution, are only capitation taxes, as expressed in that instrument, and taxes on real estate; and that the tax of which the plaintiff in error complains is within the category of an excise or duty."

"If the laws here in question involved any wrong or unnecessary harshness, it was for Congress, or the people who make congresses, to see that the evil was corrected.
The remedy does not lie with the judicial branch of the government."

Champion v. Ames(1903), 186 U.S. 321

• 'But if what Congress does is within the limits of its power, and is simply unwise or injurious, the remedy is that suggested by Chief Justice Marshall in Gibbons v. Ogden [21 US 1, 9 Wheat. 1, 6 L. ed. 23], when [195 U.S. 27, 56]   he said: 'The wisdom and the discretion of Congress, their identity with the people, and the influence which their constituents possess at elections, are, in this, as in many other instances, as that, for example, of declaring war, the sole restraints on which they have relied, to secure them from its abuse. They are the restraints on which the people must often rely solely, in all representative governments."

[sinkspur]

Tax evasion websites are a dime a dozen.

I don't care. If you want to not pay your taxes, go right ahead.

But don't be surprised if you are dealt the same fate as the cretin at the top of this thread.

[MindBender26]

I wonder who these anti-tax nut jobs think is paying for the policeman they would call if they had a traffic accident, the firefighters they would call if their house was on fire, the ambulance they would call if their wife fell and broke her leg, the Army, Navy, USAF, Coastie and Marine personnel and machinery standing watch for them tonight, the highways they drive on, the traffic lights at the intersection, the Thorazine they should be taking....

Seriously, don't bother arguing with these idiots. They area bunch of spoiled children who want us to pay for their free ride.

Be well.

[O.C. - Old Cracker]

Obvously this guy never read Cervantes.

[VRWC_minion]

He can imagine the clear meaning of the law doesn't say what it says, it ought to be easy to imagine his stay in prision is simply a long vacation to a spa.

[sinkspur]

Galactically stupid analogies.

[natewill]

Look, we all pay taxes. There is a difference between taxes and the income tax. That distinction is not made most of the time. Sales tax, Gasoline tax, Communications tax, Luxury tax, etc, we all pay far enough taxes to run the federal and state governments. What is the problem with questioning authority? I pay plenty enough tax, without having to pay taxes that I am not supposed to.

I just sent the IRS a letter saying that I do not have to pay the income tax, based on the fact that my IMF code is MFR-01, which I found out through the FOIA. Instead of rippin' me a new one, they agreed with me. I pay taxes. I just don't think I should pay a tax that I'm not liable for.

[MindBender26]

PS, friend in Orlando fell for their BS, paid about $36,000.00 for their tax advice. Lost business, wife etc. Jail for 7 years.

When he sued the "Brave Patriots" who promoted the plan, found out they had filed a standard deduction return every year for past 11 years... while they were making a living by telling others not to pay taxes!

[Blood of Tyrants]

Really? What would happen if you decided not to pay your taxes and that you would NOT answer to the government?

You would end up as dead as the 80+ people in a church in Waco.

[VRWC_minion]

You should be allowed a deduction in the year you repaid it under the claim of right doctrine. See your accountant.

[VRWC_minion]

First person to invoke hitler in debate, loses.

[MindBender26]

I just don't think I should pay a tax that I'm not in your highly distorted selfish thinking liable for.

Tell it to Corporal Tillman.

[MindBender26]

You wisely mention an accountant. A good accountant can save you 50% on your taxes every year, and do it perfectly legally!

[CitizenUSA]

If the man was a true Christian, I think he would render unto Caesar that which is Caesar's. The tax protesters may claim to be following the Bible, but they are only picking and choosing verses that support their cause while ignoring the Bible's clear intent (sort of like a certain "gay" bishop we know).

[VRWC_minion]

What's it all mean? IMF...?

Impossible Missions Force -- Those cool spies from that late 60's early 70's TV show?

Or how about International Monetary Fund? Those questionable money-crats that make equally questionable loans?

Not quite. We're talking about the IRS Master File argument. The so-called IRS "code busters" have a great line of green cheese for sale. The problem is that it is green cheese and it won't work. They claim that computer codes on your IMF show that people don't have to pay tax. The problem is that computer codes, no matter what they stand for, are not the law. The law is made by the courts of appeals and there are no courts of appeals cases that take the position these scammers take.

The IMF code theories were litigated back in the 1980s. I was one of the original individuals that raised many of these issues in court. They don't work. For example, I saw individuals convicted of tax evasion even though the IRS witness testified that the MFR-01 on the Individual Master File meant the defendant didn't have to file returns.

These "code buster guys are great talkers, but their legal arguments do not work. Don't believe them!. You might as well follow my Green Cheese defense!.

[VRWC_minion]

link to above

http://www.anti-irs.com/imf.htm

[Abcdefg]

As near as I can determine, the Congress has failed to write a law requiring the payment of an income tax but has written laws to punish those who don't pay income tax.
I agree that the problem is with Congress if no one can cite the law requiring the payment of income tax. They can most certainly cite the criminal penalties for not paying.
Maybe the politicians don't want to be on the hook for passing such a law?
I think that if the government was held to it's Constitutional powers and duties, we would need a lot less money to run it.

[MindBender26]

This year, the new scam is that if you somehow mention the secret code phrase "MFR-01" (and set your secret decoder ring to Green 17) the IRS will suddenly send you a letter assuring you that you never have to pay taxes again.

This scam is being pushed by a Barry Konikov. Konikov is a long time scammer who went to jail for selling phony "solve all your medical problems with my self-hypnosis tapes" years ago.

Class A fraud!

[natewill]

then why did they agree with me?

[sinkspur]

Ever hear of the 16th Amendment?

[Abcdefg]

Yep, gave Congress the power to levy income taxes. Can you cite the law they passed under that authority?

[sinkspur]

The 16th Amendment to the Constitution.

[Abcdefg]

"The law is made by the courts of appeals"

The Constitution says the law is made by Congress.