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The strange trial of tax-protesting former computer executive Robert Beale continues in Minnesota. You'll recall the trial started with a bang when Mr. Beale and some associates were charged with attempting to intimidate the judge via a "common-law court."
Testimony this week featured two former employees at Mr. Beale's company, Comtrol, who tipped off the IRS.
Things started to go downhill when payroll clerk smelled something fishy when Mr. Beale directed her to stop withholding on his taxes and instead send checks to a swiss bank account, according to her testimony. Eileen Johnson testified that she began to keep a file of these transactions. From startribune.com:
Beale, who is representing himself at trial, got to face Johnson, the former employee he called "Comtrol's mother," eye-to-eye Tuesday and question her."Good afternoon, Eileen, good to see you," he said. "I still love you."
The greeting began a strange cross-examination of Johnson, who earlier had detailed alleged attempts by Beale to evade paying taxes and conceal millions of dollars in income beginning in 2000 by paying himself through a sham company called "Chayil," and sending money abroad.
It's good to know he still loves her.
Beale's defense to the charges against him seems to be that he responded several times to IRS calls for documents, but didn't feel he needed to present them. He said he figured if he was wrong, he'd eventually pay a fine. He also said it was no secret he didn't like paying taxes, which proved that he wasn't trying to hide his actions."How do you feel about going behind my back and getting me into trouble?" Beale asked Johnson.
"I'm very sorry you put yourself in this situation, Bob," Johnson replied.
No word yet on whether Mr. Beale will convene a "common-law court" to press charges against Ms. Johnson for going behind his back.
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Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not neccesarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to