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Washington ‘Sovereign’ Tax Preparer Sentenced to Prison

By Bill Morlin on February 2, 2012 - 12:04 pm, Posted in Sovereign Citizens

An accountant who took his antigovernment “sovereign citizen” views to work with him is going to prison, and many of his former clients are faced with huge, unpaid tax bills.

Timothy Garrison, 60, of Mount Vernon, Wash., was sentenced Wednesday to 42 months in federal prison and ordered to pay $95,626 in restitution after pleading guilty to two counts of assisting with the filing of false income tax returns.

As an accountant and tax preparer, Garrison prepared federal income tax returns for more than 50 people with false or fraudulent information, resulting in a $2.5 million loss to the U.S. government.

“The defendant’s scheme now creates a hardship for those who put their trust in Mr. Garrison – they have big tax bills to pay,” U.S. Attorney Jenny A. Durkan of the Western District of Washington said after Garrison’s sentencing.

Kenneth J. Hines, the IRS special agent in charge of the Pacific Northwest, also issued a public statement about Garrison’s activities as a sovereign-citizen accountant. “When Americans go to a tax professional, they do not expect to receive faulty tax guidance from someone with a personal agenda,” Hines said.

As a member of a growing number of sovereign citizens who believe they’re above the law, Garrison did more than avoid paying taxes by filing fraudulent tax returns.  He was a felon and couldn’t legally possess firearms, but authorities found a 9mm Glock handgun in his home when he was arrested. He also had a badge and called himself a “county ranger,” believing he had the power to arrest police officers and public servants.

Garrison filed bogus liens against the homes – personal property – of law enforcement officers. He was ordered to remove six liens he placed on the properties of public servants in Skagit County in western Washington. “His further abuse of the legal system with fraudulent liens and so-called ‘arrest warrants’ is a dangerous mix for our law enforcement officers who are trying to keep our communities safe,” the U.S. attorney said.

As part of a plea bargain, a federal firearms charge was dismissed against Garrison, who was convicted of mail fraud in 1984. He will be on two years of supervised release – a form of federal parole – when he’s released from prison.

Garrison, who holds an accounting degree from the University of Washington, was treasurer for an antigovernment group in western Washington called the “Sovereign Assemblies” or “Assemblies of the Counties at Large.” Five other sovereign citizen members of that group also were charged in recent months with federal crimes. The group also has ties to the Alaska Peacemaker Militia and its leader, Francis Schaeffer Cox, who awaits trial on murder conspiracy and federal firearms charges.

In December, another member of the Sovereign Assemblies, David Russell Myrland was sentenced to 42 months in federal prison for making threats against the mayor and city attorney of Kirkland, Wash. Four others await trial in western Washington, including Kenneth Wayne Leaming, who is scheduled to be arraigned Friday in U.S. District Court in Seattle on assorted charges, including retaliating against a federal judge.

Garrison, his wife and two other members of the Washington state “assemblies” were “jurors” on a pseudo-legal “court” that found Cox “not guilty” after his arrest last year on charges of plotting to kidnap and kill state troopers and a judge in Alaska.

Garrison also operated a tax preparation business, the 89th Street Management Company, since 1988 from his home in Mount Vernon, and prepared 200 to 400 tax returns annually, court documents say. Between 2004 and 2009, a court document says, 17 of Garrison’s approximately 200 to 300 clients were audited by the IRS “and determined to owe average back taxes in excess of $20,000 per return.”

Garrison’s scheme involved the filing of two sets of tax returns for his clients – a corporate tax return and a personal tax return. The accountant advised his clients to create corporations through which all income was funneled. Some of those individuals apparently were unaware their accountant had filed fraudulent returns on their behalf, according to court documents.

“The individual’s tax return was fraudulent because it declared only, typically, $1,000 per month of income from the corporation when, in fact, the individuals were typically paid much more,” the plea agreement says. “The corporation tax return was fraudulent because it declared false expenses,” it added. “The net result of the individual and corporate tax returns was to facilitate the avoidance of taxes on the individual tax returns.”

  • Scorpion Killer

    These Sovereign Citizens are armed, dangerous, and deranged. Check out what Michael Crane of Arizona did… one is safe from them. Do not be paranoid – be AWARE!

  • Sam Molloy

    Is this the guy who, about 1984, had a plan to not pay income taxes because we have no “income”, because we are paid with Federal Reserve Notes instead of Gold Bullion?

  • Kiwiwriter

    These “sovereign citizens” always lose and always keep trying the same con game. They never learn.

    Well said, Ithink.

  • Lone Wolf

    Dear Ithink:

    Absent minded, brain-dead, and desperate bystanders who thought that the used car salesman was lowering the price for a great deal…looking across the border into Washington State, I see a Congresswoman from Kettle Falls, who is a staunch supporter of state’s rights and some of the core beliefs of the sovereign citizen’s movement, and recently her name is being kicked around as a Vice Presidental option. Congresswoman Cathy McMorris Rodgers is Mitt Romney’s state chairwoman in Washington.

    When Cathy attended Pensacola Christian College in the late 1980’s, some of the college’s Independent Baptist Articles of Faith included: Genesis Creation as a fact, all people inherit a depraved nature and all are in need of salvation, there will be a Rapture of Saints, a total rejection of the Charismatic, Modernism, and the Neo-Orthodoxy movement. As Biblical literalists, those not saved by reading the King James Bible and following its’ divinely inspired contents, are destined to experience eternal damnation in a literal lake of fire…there is something about this that makes Sarah Palin look like a liberal…

    Attending P.C.C., the rules are strictly enforced to include no profanity, no going out to the movies, no pre-marital sexual activity, and mixed gender meetings require a chaperone…Cathy was 20 when she graduated from PCC with a B.A. in Pre-Law…the only music allowed on campus was Classical, Traditional Christian, and Sacred Music…in 1996, a student newsletter voiced opposition to some of the school’s rules and policies and the dean called that, “an attack from Satan.” The following semester, PCC banned all devices that could connect personal computers to the Internet…

    Other than that, Pensacola Christian College sounds like a great place to study and is closely associated with Bob Jones University…so…as far as the absent minded and brain-dead, people are so busy trying to find a job or stretching their check to the end of the month, they are paying even less attention to who to vote for and Congresswoman Cathy McMorris-Rodgers appears to have many fans in the anti-government, sovereign citizen’s movement, and some in the Christian Identity Movement. These are not absent minded groups, they are well organized, but pretend as though they don’t have a plan or coordinated agenda…

  • Ithink

    And these same Reich, I mean RIGHT wingers will insist its these lazy racial minorities, promiscuous single mothers, and faux-disability plaintiffs who are too stupid and incompetent to get ‘real’ jobs that are mooching off our social safety net and the welfare state their whole lifetimes!; Always insisting so many of these type of ‘parasites’ exist without giving the remotest hint of empirical evidence to back up the bigoted claims.

    Here they are playing the notorious populist card for braindead or absent-minded, desperate bystanders by committing tax fraud against a federal governmet still on the rails of shutdown (and not in hundreds, or thousands but MILLIONS of dollars from taxpayers who are making it by on a lick and promise between EVERY pay check nowadays, myself included; how did it get so easy to do this is the question all thinking individuals should be asking about this!). I’m sure every major Republican pundit and rank-and-file member of Congress will insist these numerous ‘sovereign citizens’ are plants by the imaginary liberal media to smear the entirety of the American Right, if they even acknowledge their existence to begin with.

    If these kind of criminals and cranks can’t convince the millions of ordinary Americans, regardless of their political persuasion, that a dramatic progressive taxation increase on the uber-wealthy isn’t a necessity, only God knows what eventually will…