Arthur L. Farnsworth (born 1962) is an American politician and convicted tax protester. Evidence found by the government in Farnsworth's case helped the government indict actor Wesley Snipes on tax charges. [1] [2]
Farnsworth received his bachelor's degree in electrical engineering from Widener University and a master's degree in engineering science from Penn State. He ran for a number of offices as a member of the Libertarian Party of Pennsylvania, and served as township auditor for West Rockhill Township. Farnsworth also served as the treasurer of the Pennsylvania Libertarian Party. He ran as a candidate for the United States House of Representatives for Pennsylvania's 8th congressional district in 2004 and drew 3,710 votes. [3]
In November 2004 Farnsworth was arrested on charges of tax evasion of approximately $87,000 in Federal income taxes under 26 U.S.C. § 7201 for years 1998, 1999, and 2000. On the campaign trail as well as on his personal website, Farnsworth argued that the federal law makes the payment of income taxes voluntary. [4]
A federal grand jury charged the electrical engineer with failure to pay taxes for three years on more than $221,000 in income and with attempting to conceal his earnings by transferring assets to fraudulent trusts and overseas bank accounts.
During the case, investigators found that one of the trust funds belonged to actor Wesley Snipes. Snipes himself was indicted on tax charges in October 2006. [5] Snipes was convicted of three misdemeanor counts of failing to file Federal income tax returns (and was acquitted on other tax charges). [6] [7]
On December 11, 2006, a federal jury in the United States District Court for the Eastern District of Pennsylvania found Farnsworth guilty of tax evasion. [8]
Farnsworth was sentenced on April 3, 2007 to 27 months in prison. He was also fined $500 and ordered to cooperate with Internal Revenue Service investigators in documenting his finances and beginning to pay his tax debt of almost $83,000. [9] On December 11, 2008, Farnsworth's conviction was upheld by the United States Court of Appeals for the Third Circuit. [10]
Farnsworth was incarcerated at the Federal Correctional Institution at Fairton, New Jersey, and was released in April 2009. [11]
On March 24, 2010, Farnsworth appeared in federal court in Philadelphia in connection with alleged violations of the terms of his release from federal prison. In court papers filed on March 15, 2010, Farnsworth's probation officer charged that Farnsworth had refused to comply with directives issued by the Internal Revenue Service required by court order. The government alleged that Farnsworth had been collecting wages "under the table" while working at a sandwich shop and had not reported the wages on his tax returns. [12] On May 3, 2010, U.S. District Judge John R. Padova ordered Farnsworth back to the federal prison camp for an additional four months because of violations of Farnsworth's supervised release. [13] Farnsworth was incarcerated at the Federal Detention Center in Philadelphia, and was released on October 1, 2010. [14]
Wesley Trent Snipes is an American actor. He appeared in the films Major League (1989), New Jack City (1991), Jungle Fever (1991), White Men Can't Jump (1992), Passenger 57 (1992), Rising Sun (1993), Demolition Man (1993), To Wong Foo, Thanks for Everything! Julie Newmar (1995), U.S. Marshals (1998), The Expendables 3 (2014), Coming 2 America (2021), and the Blade film trilogy (1998–2004), portraying Blade. In television, he appeared on The Player (2015). Snipes was nominated for the Independent Spirit Award for Best Supporting Male for his work in The Waterdance (1992) and won the Volpi Cup for Best Actor for his performance in the film One Night Stand (1997).
Halsted Lockwood Ritter was a United States district judge of the United States District Court for the Southern District of Florida. He was the thirteenth individual to be impeached by the United States House of Representatives and the fourth individual to be convicted and removed from office in an impeachment trial before the United States Senate. He was also the last federal official to be impeached by the House of Representatives until Harry E. Claiborne, when he was impeached and removed from office by the Senate for tax evasion in 1986.
Irwin Allen Schiff was an American libertarian and tax resistance advocate known for writing and promoting literature in which he argued that the income tax in the United States is illegal and unconstitutional. Judges in several civil and criminal cases ruled in favor of the federal government and against Schiff. As a result of these judicial rulings Schiff was in a hospital prison serving a sentence of 162 months at the time of his death.
Cheek v. United States, 498 U.S. 192 (1991), was a United States Supreme Court case in which the Court reversed the conviction of John L. Cheek, a tax protester, for willful failure to file tax returns and tax evasion. The Court held that an actual good-faith belief that one is not violating the tax law, based on a misunderstanding caused by the complexity of the tax law, negates willfulness, even if that belief is irrational or unreasonable. The Court also ruled that an actual belief that the tax law is invalid or unconstitutional is not a good faith belief based on a misunderstanding caused by the complexity of the tax law, and is not a defense.
A tax protester, in the United States, is a person who denies that he or she owes a tax based on the belief that the Constitution of the United States, statutes, or regulations do not empower the government to impose, assess or collect the tax. The tax protester may have no dispute with how the government spends its revenue. This differentiates a tax protester from a tax resister, who seeks to avoid paying a tax because the tax is being used for purposes with which the resister takes issue.
The Law That Never Was: The Fraud of the 16th Amendment and Personal Income Tax is a 1985 book by William J. Benson and Martin J. "Red" Beckman which claims that the Sixteenth Amendment to the United States Constitution, commonly known as the income tax amendment, was never properly ratified. In 2007, and again in 2009, Benson's contentions were ruled to be fraudulent.
Tax protesters in the United States have advanced a number of arguments asserting that the assessment and collection of the federal income tax violates statutes enacted by the United States Congress and signed into law by the President. Such arguments generally claim that certain statutes fail to create a duty to pay taxes, that such statutes do not impose the income tax on wages or other types of income claimed by the tax protesters, or that provisions within a given statute exempt the tax protesters from a duty to pay.
Tax protesters in the United States advance a number of conspiracy arguments asserting that Congress, the courts and various agencies within the federal government—primarily the Internal Revenue Service (IRS)—are involved in a deception deliberately designed to procure from individuals or entities their wealth or profits in contravention of law. Conspiracy arguments are distinct from, though related to, constitutional, statutory, and administrative arguments. Proponents of such arguments contend that all three branches of the United States government are working covertly to defraud the taxpayers of the United States through the illegal imposition, assessment and collection of a federal income tax.
Eddie Ray Kahn is an American tax protester. Kahn is currently in prison for tax crimes, with a tentative release date of 2026. Kahn founded the group American Rights Litigators and ran the for-profit businesses "Guiding Light of God Ministries" and "Eddie Kahn and Associates." According to the U.S. Justice Department, all three organizations are or were illegal tax evasion operations.
Edward Lewis Brown and his wife, Elaine Alice Brown, residents of the state of New Hampshire, gained national news media attention as tax protesters in early 2007 for refusing to pay the U.S. federal income tax and subsequently refusing to surrender to federal government agents after having been convicted of tax crimes. After the conviction and sentencing, a long, armed standoff with federal law enforcement authorities at their New Hampshire residence ended with the arrest of Edward and Elaine Brown on October 4, 2007. In July 2009, while serving their sentences for the tax crimes, the Browns were found guilty by a federal district court jury of additional criminal charges arising from their conduct during the standoff.
Thomas Milton Street Sr. was an American businessman, a Pennsylvania state senator from Philadelphia, and the brother of former Philadelphia mayor John F. Street. Originally a street hot dog vendor, he rose to prominence as an activist challenging the city's vending and housing ordinances.
Tommy Keith Cryer, also known as Tom Cryer, was an attorney in Shreveport, Louisiana who was charged with and later acquitted of willful failure to file U.S. Federal income tax returns in a timely fashion. In a case in United States Tax Court, Cryer contested a determination by the U.S. Internal Revenue Service that he owed $1.7 million in taxes and penalties. Before the case could come to trial, Cryer died June 4, 2012. He was 62.
William Terrell Hodges was a United States district judge of the United States District Court for the Middle District of Florida.
The 861 argument is a statutory argument used by tax protesters in the United States, which interprets a portion of the Internal Revenue Code as invalidating certain applications of income tax. The argument has uniformly been held by courts to be incorrect, and persons who have cited the argument as a basis for refusing to pay income taxes have been penalized, and in some cases jailed.
A tax protester is someone who refuses to pay a tax claiming that the tax laws are unconstitutional or otherwise invalid. Tax protesters are different from tax resisters, who refuse to pay taxes as a protest against a government or its policies, or a moral opposition to taxation in general, not out of a belief that the tax law itself is invalid. The United States has a large and organized culture of people who espouse such theories. Tax protesters also exist in other countries.
Tax protester arguments are arguments made by people, primarily in the United States, who contend that tax laws are unconstitutional or otherwise invalid.
Barrie Leslie Konicov was a United States hypnotist, author, and one-time Libertarian candidate for the United States Congress. He was the President and chief hypnotherapist of Potentials Unlimited. At one time Konicov sold approximately a million self-hypnosis tapes a year. Konicov was also notable for his involvement in several court cases including United States v Konicov, a 2001 conviction for one count of conspiracy to defraud the United States by impeding, impairing, obstructing, and defeating the lawful governmental functions of the Internal Revenue Service. He was also convicted on three counts of willfully failing to file Federal income tax returns for the years 1994, 1995, and 1996. Konicov received an 87-month prison sentence. The Atlantic magazine named Konicov fourth on its list of the ten biggest tax scofflaws of the 20th century.
Under the federal law of the United States of America, tax evasion or tax fraud, is the purposeful illegal attempt of a taxpayer to evade assessment or payment of a tax imposed by Federal law. Conviction of tax evasion may result in fines and imprisonment. Compared to other countries, Americans are more likely to pay their taxes on time and law-abidingly.
Robert Edward Barnes is a lawyer and founder of Barnes Law LLP, a Los Angeles-based law firm.