In San Antonio today, U.S. District Judge Orlando Garcia sentenced Daniel Isiah Thody to 90 months in federal prison followed by three years of supervised release and ordered him to pay $162,857.00 restitution to the Internal Revenue Service announced United States Attorney Robert Pitman, Internal Revenue Service--Criminal Investigation Special Agent in Charge Steven McCollough and Federal Bureau of Investigation Special Agent in Charge Christopher Combs.
On November 8, 2013, a jury convicted Thody on five counts of tax evasion. The jury found that 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 individual’s bank account as well as the name of a nominee company--WET Publishing—a company created by his father to produce anti-government publications. During trial, Thody claimed that the IRS had no authority to tax him.
“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,” stated IRS-CI 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.”
This case was investigated by the Internal Revenue Service—Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Mark Roomberg and William R. Harris prosecuted this case for the government.