Talk:Kent Hovind/Taxes 1

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Main article: Kent Hovind

Kent Hovind, a "Young Earth" creationist has had several legal battles over taxes in the last decade with the government. In 1996, he unsuccessfully filed for bankruptcy to avoid paying federal income taxes, and according to the IRS, the government has no record of him filing income taxes.

In 2006 Hovind was convicted with 58 federal tax-related count and faces a maximum of 288 years in prison, and his wife 255 years. Following 10 years of various refusals to pay taxes and several court cases, the Hovinds were found guilty on November 2, 2006 with their defense deciding not to present a case.^[1]

Contents 1 Bankruptcy and citizenship 2 Federal criminal tax matters in 2006 3 References 4 External links 4.1 Court records

[edit] Bankruptcy and citizenship

In 1996 Hovind unsuccessfully filed for bankruptcy to avoid paying federal income taxes. Hovind was found to have lied about his possessions and income^[2]. He claimed that as a minister of God everything he owns belonged to God and he is not subject to paying taxes to the United States on the money he received for doing God's work (citing US tax code §508(c)(1)(a)) ^[3]. The court ordered him to pay the money and upheld the IRS determination that Hovind's claim "was filed in bad faith for the sole purpose of avoiding payment of federal income taxes." In the ruling, the judge called Hovind's arguments "patently absurd." The judge also noted that "the IRS has no record of the debtor ever having filed a federal income tax return," although this was not the court's reason for denying the bankruptcy claim.

Hovind does not run his various educational and religious activities through a U.S. Internal Revenue Code Section 501(c)(3) organization. Instead, the organizational structure he uses apparently is "based on various questionable trust documents purchased from ... a known promoter of tax avoidance schemes."^[4] The U.S. Tax Court has concluded that Hovind used these trust documents as well as other fraudulent means to conceal the ownership and control of his activities and properties.^[4]

On May 13, 1998, Hovind and his wife attempted to evade all responsibility for any previous promises, debts, or legal agreements made prior to April 15, 1998, by filing a document called "Power of Attorney and Revocation of Signature"^[5] with the Escambia County Clerk of Courts. The document reads, in part: "I/we do hereby revoke and make void... all signatures on any instruments...". The Hovinds claimed they had signed government documents "due to the use of various elements of fraud and misrepresentations, duress, coercion, under perjury, mistake, 'bankruptcy'."^[5]

In the document, the Hovinds argue that Social Security is essentially a "Ponzi scheme."^[5] The Hovinds referred to the United States Government as "the 'bankrupt' corporate government" and said they were renouncing their United States citizenship and Social Security numbers to become "a natural citizen of 'America' and a natural sojourner.").^[5] In 2002 Hovind was again delinquent in paying his taxes, and unsuccessfully sued the IRS for harassment.^[6] The Hovinds referred to their home state of Florida as "the State of Florida Body-Politic Corporation."^[5] Judges and the IRS did not appear to honor this as a legally relevant document in future decisions.^[6]

In 2004, IRS agents raided Hovind's home and business to confiscate financial records.^[7] IRS agent Scott Schneider said none of Hovind's businesses had a business license, nor tax-exempt status. The Associated Press quoted Schneider as saying "Since 1997, Hovind has engaged in financial transactions indicating sources of income and has made deposits to bank accounts well in excess of $1 million per year during some of these years, which would require the filing of federal income taxes."^[8] On June 3 2004, the IRS issued tax liens of $504,957.24 against Hovind and his son and their businesses due to previous legal maneuverings to evade taxation by moving property between himself, his son, and other legal entities.^[9]

On July 7, 2006 the United States Tax Court (Docket number 011894-05L) found that Hovind was deficient in paying his federal income taxes in tax years 1995-97 in the amount of $504,957.24.^[4] The Tax Court found that the IRS had a valid, perfected lien on Hovind's property in that amount. The IRS is currently levying against Hovind's property to satisfy his unpaid tax liabilities.^[4] In the Memorandum Opinion the judge noted that Hovind's "organizational structure . . . was based on various questionable trust documents purchased from Glen Stoll, a known promoter of tax avoidance schemes."^[4] Moreover, Hovind's defense was based on "bizarre arguments" and "some of which constitute tax protestor arguments involving excise taxes and the alleged '100% voluntary' nature of the income tax."^[4]

[edit] Federal criminal tax matters in 2006

On July 11, 2006, Hovind was charged in the United States District Court for the Northern District of Florida in Pensacola with twelve counts of willful failure to collect, account for, and pay over Federal income taxes and FICA taxes under 26 U.S.C. § 7202, forty-five counts of knowingly structuring transactions in Federally-insured financial institutions to evade the reporting requirements of 31 U.S.C. § 5313(a), in violation of 31 U.S.C. § 5324, 18 U.S.C. § 2 and 31 C.F.R. sec. 103.11, and one count of corruptly endeavoring to obstruct and impede the administration of the internal revenue laws under 26 U.S.C. § 7212.^{[10] [11]} Twelve of the charges were for failing to pay employee-related taxes, totaling $473,818, and 45 of the charges were for evading reporting requirements by making multiple cash withdrawals just under the $10,000 reporting requirement (smurfing). The withdrawals, totaling $430,500, were made in 2001 and 2002.^[11]

The government charged that Hovind falsely listed the IRS as his only creditor in his bankruptcy, filed a false and frivolous lawsuit against the IRS in which he demanded damages for criminal trespass, made threats of harm to those investigating him and to those who might consider cooperating with the investigation, filed a false complaint against IRS agents investigating him, filed a false criminal complaint against IRS special agents (criminal investigators), and destroyed records.^[12]

After the indictment, Hovind had maintained his innocence. "I still don't understand what I'm being charged for and who is charging me," he said.^[11] Magistrate Miles Davis asked Hovind if he wrote and spoke English, to which Hovind responded "To some degree". Davis replied that the government adequately explained the allegations and the defendant understands the charges "whether you want to admit it or not."^[13] An October 17th trial date (originally September 5th) was set for Kent Hovind and his co-defendant wife, Jo, who faced 44 charges.^[14] Hovind stated that he did not recognize the government's right to try him on tax-fraud charges. At first he attempted to enter a plea of "subornation of false muster," but then entered a not guilty plea "under duress" when the judge offered to enter a plea for him.^[6]

At the time of the arrest, Magistrate Davis, "over Kent Hovind's protests[,] ... took away his passport and [the] guns Hovind claimed belonged to his church...." Hovind argued that he needed his passport to continue his evangelism work. He said "thousands and thousands" were waiting to hear him preach in South Africa the following month. But Davis sided with Assistant U.S. Attorney Michelle Heldmyer, who argued that "like-minded people" might secret Hovind away if he left the country. In relation to the guns, Davis said "ownership was not the issue.".^[11] Because of reports of weapons in the Hovind compound, the indictment was originally sealed for fear that "the arrest of the defendants in this case could pose some danger to agents."^[15] More than a half-dozen guns were seized at the Hovind's home, including an SKS semiautomatic rifle. ^[16] Also "During an IRS raid at the home, agents found cash stashed 'all over the place.' About $42,000 was seized."^[16]

It was revealed during the trial that Jo Hovind had requested financial assistance from Baptist Healthcare claiming that the Hovinds had no income. "'Dr. and Mrs. Kent Hovind do not earn salaries,' wrote Martha Harris, the trust secretary of Creation Science Evangelism to Baptist. 'As health insurance is not provided for this couple, we would appreciate (financial assistance).'" ^[17] However, continues the article "Kent Hovind, a tax protester, makes a substantial amount of money" see above [2]. "On the day the IRS searched the Hovind home, Kent Hovind withdrew $70,000 from the Creation Science Evangelism account. Half in a check; the other in cash.^[18]

At the time of the indictment, Hovind's defense appeared to be that although there were 30 people working for him, all of whom received remuneration in cash, none of them were employees. According to Hovind, "Nobody's an employee, and they all know that when they come. They come, they work ... The laborer is worthy of his hire -- we try to take the purely scriptural approach. We do the best we can with helping people with their family needs. There are no employees here."^[19] Hovind had also claimed that he was not liable for taxes that and his ministry did not have to "render unto Caesar" because his workers are "missionaries" not "employees".^[20]

On October 21, 2006, the trial began in which he hoped to convince a jury that his amusement park admission and merchandise sales belonged to God and cannot be taxed.^[21] After the first week of testimony the trial was postponed due to a defense lawyer's illness.^[22] Former and current workers, IRS agents, a bank employee, and a lawyer of a non-profit Christian organization testified in the trial. Workers testified that they had to punch time cards, had vacation and sick days; while others testified Hovind claimed he had "beat" the tax system.^[23] During the trial, the judge "admonished" Hovind's attorney for wasting time and asking irrelevant questions.^[24]

The trial concluded on November 1st with the defense deciding not to present a case.^[25] After closing arguments were presented on November 2nd, the jury deliberated three hours before finding the Hovinds guilty on all counts.^[26] The Pensacola News Journal noted, "The saddest thing: Had they cooperated with the agents, they probably wouldn't be worrying about prison sentences now."^[27]

Hovind was sentenced on January 19, 2007 to ten years in prison and ordered to pay the federal government restitution of $640,000. After his prison term finishes, he will have to serve another three years of probation. A tearful Hovind had hoped to avoid prison, telling the court, "If it's just money the IRS wants, there are thousands of people out there who will help pay the money they want so I can go back out there and preach."^[28]

Hovind's teary eyed court room behavior was in stark constrast to phone calls he made while in jail.^[29] Played during his sentencing, the tapes of Hovind's phone calls from jail showed Hovind tried to hide his assets and refuse to accept responsibility for breaking the law.^[30] One conversation with Eric Hovind, Kent's Hovind son, showed the two conspire to hide motorvechile titles and property deeds to prevent the government from collecting the property to pay for owed debt.^[30]

Jo Hovind's sentencing was delayed until March 1 to give lawyers a chance to file more briefs.^[31]

[edit] References

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[edit] Court records

• Hovind bankruptcy decision, 1996
• Escambia County Florida Clerk of the Circuit Court Affidavit August 10, 2005 A court affidavit Hovind presented containing his biography.
• Hovind, 197 B.R. 157 (Bankr. N.D. Fla. 1996) - A description of the 1996 seizure of property
• Hovind v. Schneider, 2002
• US Tax Court: Hovind v. Commissioner Internal Revenue Memo Opinion July 6, 2006
• Escambia County (Pensacola, Florida) Clerk of Courts