March 28, 2013
Department of Justice
United States Attorney William C. Killian Eastern District of Tennessee
Former Gatlinburg Resident Convicted Of Tax Offenses
KNOXVILLE, Tenn.- David Miner, formerly of Gatlinburg, Tenn., was convicted today by a federal jury in Knoxville, with one count of impeding or obstructing the administration of the Internal Revenue Laws and two counts of failing to file federal income tax returns. The Honorable Thomas Phillips, U.S. District Judge, ordered Miner to be held in custody pending sentencing, which has been scheduled for May 29, 2013. Miner faces a maximum penalty of five years in prison and a fine of $450,000.
In the course of a six-day trial, the United States presented evidence of Miner’s efforts to obstruct the lawful functions of the Internal Revenue Service (IRS) and his failure to file tax returns for the 2004 and 2005 tax years. The jury heard extensive testimony regarding Miner’s sale of services that were designed to assist customers in evading income taxes. In particular, the United States offered evidence of a service for the purported decoding and correction of clients’ IRS files, which Miner stated would prevent the IRS from being able to assess taxes. In addition, Miner set up “common law trusts,” which were intended to place clients’ income and possessions out of the reach of the IRS. In connection with both services, Miner would prepare frivolous and threatening letters to IRS employees and others in an effort to hamper the collection of taxes.
U.S. Attorney William C. Killian stated, “When tax protesters promote and use fraudulent tax schemes as weapons against the United States of America, they will be brought to justice. The diligent efforts of IRS Criminal Investigation Division agents and AUSA Frank Dale assured the equal application of the laws of the United States to all.”
"The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject," said Christopher A. Henry, Special Agent in Charge, IRS Criminal Investigation Nashville Field Office. "We should not forget that the ultimate victims in tax fraud cases are the people of the United States - those honest taxpayers who diligently file tax returns each year. This conviction sends a message that the IRS is working to make sure that all taxpayers file and pay their fair share of taxes."
This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Frank M. Dale, Jr. represented the United States.