Man who is anti-tax charged for tax evasion.

Randy Orton

WC's Resident Alchoholic

Anti-tax crusader guilty of filing false return data
By Sam Stanton -- Bee Staff Writer
Published 2:15 am PST Saturday, January 29, 2005
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A nationally known tax protester who believed income taxes are illegal was found guilty Friday of multiple counts of filing false tax returns and failing to withhold taxes from employees after representing himself at trial in federal court.
Walter A. "Al" Thompson, whose anti-tax philosophies landed him a spot on "60 Minutes II" and in numerous stories in the New York Times, faces up to 63 years in prison and $3.25 million in fines at his sentencing, scheduled for April 13 in U.S. District Court in Sacramento.




So how'd he do as a lawyer in the complex legal case?
"Not very well," said Assistant U.S. Attorney Robert Twiss, who along with prosecutor Carolyn K. Delaney successfully convicted Thompson of 13 counts of tax law violations.

Thompson was acquitted on the major count in the indictment, which charged him with conspiracy to defraud the United States.

"He was stoic, he had no visible reaction (to the verdict)," Twiss added.

That tone was far removed from his boasts to the national media four years ago about his decision to stop withholding income taxes from his employees' paychecks in 2000. At the time, Thompson owned a Shasta Lake company that had 25 employees who manufactured flight bags.

"Thompson said that he felt that the income tax system was illegal and that they didn't have to pay taxes," court documents say, adding that new employees at the company were not even allowed to fill out W-4 income reporting forms.

Thompson was not shy about his beliefs, holding one meeting with employees that was videotaped and included a co-defendant, Joseph Banister, telling the workers he agreed with Thompson's beliefs, court documents state.

Banister, a San Jose certified public accountant and former Internal Revenue Service agent, faces trial in June.

The government contended Thompson's scheme was an effort to get around paying federal taxes, saving himself $260,000 he would have had to pay in withholding.

He also was accused of having Banister amend his individual tax returns for 1996, 1997 and 1998, years for which he had originally reported more than $300,000 in income.

The new returns showed he had earned no taxable income in those years and he filed for a refund of $65,000 for 1996 and 1997 and the elimination of a 1998 tax debt of $15,500, the government charged.

The pair were charged last November. Banister will stand trial on charges that could lead to 14 years in prison and a $1 million fine. He is using an attorney for his day in court.