San Antonio tax protester sentenced for tax evasion

US attorneys: Man claimed IRS had no authority to tax him

SAN ANTONIO – A San Antonio man convicted of tax evasion was sentenced to more than 7 years in federal prison, followed by 3 years of supervised release, U.S. attorneys said.

Daniel Isiah Thody is also ordered to pay $162,857 restitution to the Internal Revenue Service, authorities said.

A jury convicted Thody on five counts of tax evasion on Nov. 8. U.S. attorneys said the jury found Thody willfully evaded and failed to file income tax returns for calendar years 2006 through 2010.

According to evidence presented at trial, Thody intentionally tried to conceal from the IRS his true income by using another person's bank account, as well as the name of a nominee company identified as WET Publishing -- a company created by his father to produce anti-government publications.

During the trial, Thody claimed the IRS had no authority to tax him, according to U.S. attorneys.

"Hard working taxpayers should not have to shoulder the burden for those such as Mr. Thody who willfully and deliberately neglect to meet their tax obligations as citizens of this great nation. Today's sentencing should give pause to those that may be attracted to the illusive claim that there is no legal requirement to pay federal income tax," said IRS-Criminal Investigation special agent in charge Steven McCollough. "The law is crystal clear on this matter, there is no gray area and the courts have consistently upheld the tax law. IRS Criminal Investigation continues its commitment to aggressively identify and pursue those taxpayers who willfully fail to file their tax returns."


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