Tax Protester Sentenced to over Three Years for Attempting to Evade Taxes and Failing to File Income Tax Returns
Failed to File Federal Tax Returns For Seven Years While Earning at Least $895,000 in Income
Baltimore, Maryland - U.S. District Judge Marvin J. Garbis sentenced Anthony Edwin Dorsey, Sr., age 59, of Columbia, Maryland, today to 37 months in prison followed by three years of supervised release for evading the payment of income taxes and failing to file income tax returns, announced United States Attorney for the District of Maryland Rod J. Rosenstein and Assistant Attorney General Nathan J. Hochman of the Department of Justice Tax Division.
“Yes, you do go to federal prison for cheating on your taxes,” said U.S. Attorney Rod J. Rosenstein. “The jury took less than two hours to reject Anthony Dorsey Sr.’s bogus claim that he was not required to pay taxes. The evidence showed that Mr. Dorsey not only failed to file tax returns and evaded income taxes, but also obstructed the IRS’s investigation.”
"Going to jail for years and being branded a lifelong convicted felon are serious consequences for tax defiers, like Mr. Dorsey, who knowingly and willfully violate our nation's tax laws," said Nathan J. Hochman, Assistant Attorney General of the Justice Department's Tax Division. "Under the National Tax Defier Initiative, the Tax Division has committed to vigorously investigate, prosecute and convict those who engage in illegal tax defier activity whenever and wherever such activity occurs."
“While taxpayers have the right to contest their tax liabilities in the courts, taxpayers do not have the right to violate and disobey tax laws,” stated C. Andre' Martin, Internal Revenue Service-Criminal Investigation Special Agent in Charge. “We should not forget that the ultimate victim of tax fraud is the honest taxpayer and the numerous programs funded by the government."
According to evidence presented at trial, Dorsey operated an information technology consulting business known as Allnet System Resources since at least 1999. As an independent contractor, Dorsey was responsible for paying federal and state income, payroll and Medicare taxes on the payments he received for his computer consulting services. From 2001 to 2007 Dorsey was paid at least $895,000. He did not file federal or state tax returns or pay federal or state taxes on this income.
According to trial testimony, from 1999 to the present, Dorsey attempted to evade his tax liability by: promptly converting $380,000 he was paid to cash and then using the cash for personal expenses; transferring $88,975 from his bank accounts to an offshore credit card account and then using that credit card for his personal expenses; providing an inaccurate social security number to the bank where he maintained his principal bank accounts to make it more difficult to identify his ownership of the funds and track the movement of funds from these accounts; making mortgage payments on his residence under the name of the previous owner, so that the previous owner was reflected on county property and tax records as the owner; and using false social security numbers when purchasing an interest in time share properties in Las Vegas, Nevada and Williamsburg, Virginia in December 2002 and July 2003.
United States Attorney Rod J. Rosenstein thanked the Internal Revenue Service - Criminal Investigation for its investigative work, and commended Assistant United States Attorney Jefferson M. Gray and Trial Attorney Daren H. Firestone of the U.S. Department of Justice Tax Division, who prosecuted the case.