Tax Resister Receives Six-year Sentence

Sacramento, CA (AP) -- A Redding businessman who refused to pay his income taxes and those of 10 employees with a contention that federal income tax laws were repealed in 1939 was sentenced to six years in federal prison sentence and fined $7,500 Wednesday.

U.S. District Judge William B. Shubb called Walter ''Al'' Thompson, 58, ''incorrigible'' and told Thompson's supporters that ''people looking at Mr. Thompson now need to know you do go to jail. They need to know Mr. Thompson is not their hero. He is going to jail.''

Thompson, former owner of Cencal Aviation, a Shasta Lake manufacturer of flight bags and other airplane accessories, betrayed no emotion at the sentence. Before sentencing, he said, ''I don't believe I should spend one day in jail for what I did. I have not committed a crime and there's nothing to convict me on.''

In a long, rambling discussion with the judge, Thompson refused to acknowledge the court's authority over him and said ''My first responsibility is to God and the Ten Commandments.''

Thompson faced up to 63 years in prison and maximum $3.25 million fine for his yearslong battle with federal tax authorities, who claimed last year he owed them $259,000 in back taxes. The colorful saga that continually filled the pages of Northern California newspapers and included three arrests last year reached its final stage in November with a rambling chase on Interstate 5 that ended with his surrender at gunpoint.

In January, a federal jury convicted Thompson of 13 counts of tax resistance, including not paying his own since 1999 and failing to pay those of his employees since 2000. The jury also convicted Thompson of illegally seeking refunds for taxes paid in 1996 and 1997 and to skip paying them altogether in 1998.

Thompson reported $300,000 in income during the three-year span.

Federal attorneys and the U.S. Internal Revenue Service consistently rejected his arguments that income earned by most U.S. citizens doesn't meet the definition of taxable income under U.S. Treasury regulations.

Thompson was acquitted in January of conspiring with Joseph Banister, a former special agent in the criminal investigation division of the IRS, to remove Cencal employees from the taxpayer rolls. Banister appeared with Thompson at an employee meeting in 2000, investigators allowed, and backed up Thompson's earlier story to employees that they weren't legally required to pay taxes.

Banister, of San Jose, faces a separate trial on the issue in June.

First arrested last April 15, Thompson was immediately released after promising a judge he would get his records together. But judges ordered him arrested Aug. 9 on contempt of court charges when he missed a court date. A federal judge released him 2 1/2 months later, saying jail wasn't having the desired effect.

His third arrest came Nov. 19 after being indicted earlier in the day for conspiring to bilk the government out of payroll and income taxes. Thompson surrendered at gunpoint after a chase with blown tires from a police spike strip and threats to send a police dog into his car to remove him.