For more than 20 years, Denver resident, Lawrence Martin Birk, failed to pay federal income taxes. It wasn’t until the IRS began collection efforts that the owner of Terryall River Log Homes, which built and sold log homes, hired a tax firm to prepare eight years of returns. However, Birk left out a lot of information on the returns, including over $400,000 in retirement distributions that he funneled through a shell company.
After filing the returns Birk refused to pay the money due and instead sent the IRS threatening letters citing the “We the People” foundation and the “Tax Honesty” movement.
In his ongoing efforts to keep funds from the IRS, Birk purchased cashier’s checks as soon as he deposited money into his account in order to reduce the balance the IRS could have access to.
By the time Birk went to trial his tax liability was more than 3.5 million dollars. He was sentenced to five years in prison and ordered to pay restitution in the amount of $1,858,826