Jury acquits pilot, who questioned IRS, of tax-evasion counts

The Commercial Appeal (Memphis) | August 9, 2003 | Shirley Downing

[citizenx7]

A federal jury Friday found FedEx pilot Vernice Kuglin not guilty of evading income taxes on $920,000.

The question of tax payment was unresolved at the end of the five-day trial.

"I think it is safe to assume the IRS will attempt civil collection, but she is not guilty of tax evasion," said defense attorney Robert Bernhoft of Milwaukee.

"I feel justified," a grinning Kuglin said after the verdict was returned at mid--afternoon. She stood outside the federal building, chatting with supporters and jurors.

Federal prosecutor Joe Murphy was not available for comment.

Kuglin, 58, was charged with six counts of tax evasion that could have meant up to 30 years in prison and $1.5 million in fines.

The government accused Kuglin of filing false W4 forms for the period from 1996 to 2001.

Kuglin, a pilot for FedEx since 1985, said she had paid taxes like anyone else for most of her life. But about 10 or 11 years ago, she began to question the federal tax system. She began to read court documents, legal opinions and the federal tax code.

She said she found what she felt were contradictions. She wanted to know where in the federal tax code it said she was liable for taxes.

Kuglin wrote the Internal Revenue Service twice in 1995 with questions but said she didn't get a response.

Murphy, in closing arguments on Thursday, said Kuglin did have an opportunity to discuss her situation with the IRS, to learn what she owed and what documents she was required to file "and she didn't."

Defense attorney Larry Becraft of Huntsville, Ala., said Kuglin decided mandatory payment of income taxes "did not apply to her."

After the verdict Friday, Becraft said the federal tax code is a confusing conglomeration that "at best is a walking due process violation."

He said the average American simply doesn't understand the tax code.

Juror Barbara Snodgras of Memphis said the jury did not convict because "we all felt that the prosecution didn't prove its case."

When asked if she planned to start paying federal income taxes again, Kuglin replied: "I will pay all the taxes for which I am liable."

[citizenx7]

The case is: U.S. District Court, Western District of Tennessee (Memphis) # 03-CR-20111, USA v. Kuglin.

[firewalk]

bttt

[thoughtomator]

Wow this is incredible... the judge intimated that the tax code violates the 5th Amendment!

[citizenx7]

Of course! The Tax code is written in such a clever manner, so that is can be understood to be Constitutional, by, amoung other things, saying it it "voluntary". Once you sign a 1040, under penalty of perjury, you surrender many of your constitutional rights away, and put yourself at grave legal risk.

[eno_]

Federal prosecutor Joe Murphy was not available for comment.

Ha ha!

[eno_]

Soooooo... jury nullification good, or bad?

One could argue this was not actual jury nullification, since the jury's reasoning was basically that the Code is so complex the case could not be proven in practice. But it is sure in a grey area.

It will be interesting to see if the civil case goes down in flames, too.

[elbucko]

This isn't going to make the "Fat Pink White Boy's" of the tax industry, both public and private, happy. The bureaucracy of government and private accounting professionals make a good living off this parasitical revenue system. Also, they have friends in high places and will not go away without a fight.

[citizenx7]

I doubt if this is within the catagory of Jury Nullification. This sort of thing happens with some frequency. The jury is not (necessarily) being given the legal facts of the case, and making a statement that they believe the law is wrong! They are saying that, for whatever reason, the government has not, and will not state the legal reason why this individual is required to pay the Income Tax! If the government can't explain the reason for bringing this person to trial, from the law, then it should lose every time.

[snopercod]

Click on picture

[eno_]

I can tell you I would be a highly sceptical juror on any tax case. It would have to be crytal clear to me, including the fundamental legal issues, due process issues, etc., before I would vote to convict.

[elbucko]

I can tell you I would be a highly skeptical juror on any tax case.

So would I. The prosecution would have the impossible mission of proving any violation of tax law to me, were I a juror.

[mvpel]

When asked if she planned to start paying federal income taxes again, Kuglin replied: "I will pay all the taxes for which I am liable."

That's the perfect answer - the IRS, when asked, can't seem to point to any section of the law or regulations that makes the average American liable to pay income tax.

[citizenx7]

I don't know about you, but I couldn't sleep at night if I couldn't be open and honest with my answers. The defendant in this case had the perfect answer, because it is honest and truthful.

I don't know how Federal Prosecutors, Tax Attorney's, and IRS employee's sleep at night!

[norraad]

Easy, just think of Hedly Lamar

{ B L A Z I N G ~ S A D D L E S }.

ps

He actually wrote the code!

[agitator]

Where are all of the cut-and-paste flying monkeys on this one?

[justshe]

Where are all of the cut-and-paste flying monkeys on this one?


15 posted on 08/09/2003 2:07 PM PDT by agitator

---

I think you have picked an apt screen name.

[Capt. Tom]

Years ago I was selected to do Federal Jury duty in Boston. The Federal Judge was Walter Skinner.

Judge Skinner asked if anyone wanted to be excused. There were about 74 jurors in the courtroom. There were only about 6 people who went to the bench because you could write in for two weeks prior to that reporting date and give a reason to be excused.

I heard the reasons given by a couple of people ahead of me and Judge Skinner said they were excused pending verification of their reasons to be excused.

Now comes my turn. I get in front of Judge Skinner and ask him if we would be trying anyone for income tax evasion. He says that is a possibility. I say I could not render an unbiased verdict in that type of case. He asks me why.

Now understand the bench is about 4 feet wide between us so I lean forward and say: There is no way I am going to find anyone guilty of tax evasion when one of the richest men in the country, the Vice President, Nelson Rockerfeller only paid $900 in federal taxes last year.

Judge Skinner glares at me and then I say out loud "The federal system of taxation SUCKS.

All hell broke loose with that remark. The two proscecutors behind me, jumped me -the man in charge of seating the jurors in the jury box jumped the rail and grabbbed me - the police grabbed me. There were about a dozen people who had me pinned against the bench in front of Judge Skinner.

Judge Skinner leaned over and said. "It's to bad you feel that way."This man is not excused he will be on jury duty! He kept me on jury duty for 6 weeks. I got thrown off every case by the proscecutors, that I was selected to be on.

It was an interesting 6 weeks. I had to report every Monday and then got bounced by the proscecutors. - tom

[eno_]

Excellent!

I'd have stayed in the pool and shut up, and cost someone their tax case had I been on the jury.

But your experience shows the truth: the government is the enemy.

[jla]

fyi

[Badray]

A big 'what you said' BUMP!