Tax protester gets 27 months in jail

A Bucks County tax protester convicted in December by a federal jury of evading income taxes was slammed by a Philadelphia federal judge yesterday.

Arthur L. Farnsworth, a software engineer who ran unsuccessful campaigns for Bucks County commissioner in 2003 and the U.S. House in 2004, was sentenced to 27 months behind bars by U.S. District Judge John R. Padova.

"You have been defiant with regard to the law," Padova said, before pronouncing sentence.

"No one can criticize you for the opinions you hold or your critical comments regarding our tax system . . . but we are a people of law and you clearly violated the law," the judge said.

Then Padova ordered that Farns-worth be taken into custody immediately, and he was handcuffed and led out of the courtroom yesterday by U.S. marshals as friends and supporters watched.

Farnsworth, 44, of West Rockhill Township, operated a Web site that offered tips on how to avoid paying federal income taxes. He contended during his trial that paying federal income taxes is voluntary.

Farnsworth certainly didn't help himself in front of Padova yesterday.

He told Padova that he had made an "unwise decision" not to file federal tax returns. But, he said, that decision was based on sincere beliefs about the tax code and it was going to be a "slow turn" before those beliefs changed.

Prosecutors were elated with Padova's decision, which was at the top end of advisory guideline range of 21 to 27 months.

"We think the judge considered the evidence and the circumstances of the case and felt the defendant hasn't shown any remorse or acceptance of responsibility or begun any rehabilitation," said Assistant U.S. Attorney Amy Kurland.

Defense attorney Peter Goldberger said he was "surprised and disappointed" but conceded the judge "had a strong message to send, and that message was directed to others as much as to Arthur."

Farnsworth was convicted of evading about $80,000 of income taxes on $288,000 of income from 1998 to 2000.

The trial showed the extremes to which he went to evade taxes.

Prosecutors presented evidence that Farnsworth cashed out his 401(k) retirement plan, transferred the funds to an offshore bank account and then "repatriated" it back to the U.S. without ever paying taxes on it.

A witness for the feds testified that he and Farnsworth bought fraudulent trust funds to hide money and assets from Uncle Sam.

In court papers filed last month, Assistant U.S. Attorney Ara Gershengorn said Farnsworth has still not paid any taxes on the $288,000 of income, and has not made any efforts to prepare federal tax returns for 1998-2000 or any year since.

When Farnsworth gets out of prison, Padova said he must work with the IRS to file all delinquent tax returns, pay all back taxes, interest and penalties due and begin filing returns and paying taxes in the future.

"This is a condition of sentence . . . I'm deadly serious," Padova said. *