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Old 08-05-2012, 10:01 PM   #3
trilochana.nejman

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ORANGE COUNTY BUSINESS OWNER SENTENCED TO 27 MONTHS IN PRISON FOR SUBMITTING FALSE CLAIM FOR FEDERAL EMPLOYMENT TAXES

Los Angeles, CA - An Orange County tax protester who owns a Huntington Beach electronics company was sentenced today to more than two years in federal prison for submitting a false claim to the Internal Revenue Service that fraudulently sought a $61,388 refund of employment taxes.

George Henry "Nick" Jesson, 55, of Fountain Valley, the owner of No Time Delay Electronics, Inc., was sentenced to 27 months in prison by United States District Judge Percy Anderson. Jesson was remanded into custody immediately after the sentencing.

Jesson is associated with We the People Foundation for Constitutional Education, a tax-protest group that bought a full-page ad in USA Today in 2001 to declare that the government did not have the authority to collect taxes from paychecks. Judge Anderson said that the 27-month sentence should serve as a deterrent to others contemplating anti-tax actions.

In addition to the prison term, Judge Anderson ordered Jesson to pay restitution of $215,454 to the IRS.

Jesson pleaded guilty on June 27, 2005, admitting that he signed and filed a false IRS Form 941c – Supporting Statement to Correct Information – and amended Forms W-2c – Corrected Wage and Tax Statements – for No Time Delay Electronics which falsely reported that no wages had been paid to employees of his company in 1997. In reality, No Time Delay Electronics paid wages of $177,083.22 to Jesson and $273,236.20 to Jesson's wife in 1997, which Jesson acknowledged to be taxable income when he pleaded guilty. In addition, No Time Delay Electronics paid wages to other employees in 1997. Based on the false statement in May 2000 that No Time Delay Electronics had paid $0 wages in 1997, Jesson falsely claimed that the total amount of all employment taxes paid by the company in 1997 should be refunded. The total refund requested for all employees of No Time Delay Electronics, Inc. was $215,454, of which $61,388 was the employment tax withholding from the wages of Jesson and his wife. Jesson took the refund of $215,454 and immediately converted the total amount to his own personal use.

Jesson also admitted that, prior to filing the false Form 941c for No Time Delay Electronics for 1997, he had attempted to obtain a refund of $61,388 (the taxes withheld on the wages paid to Jesson and his wife) by filing an IRS Form 1040X – an amended federal income tax return – for himself and his wife. In this filing, Jesson claimed that wages were not taxable income. As part of the sentence imposed, the court also ordered Jesson to file true and accurate tax returns for 1997 through 2004 and to pay over the IRS all taxes, penalties and interest assessed on such tax returns. When this filing was unsuccessful in yielding a refund, Jesson filed the fraudulent Forms 941c and W-2c.

This case is the result of an investigation by IRS-Criminal Investigation Division.
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