Joe Banister

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available information. Please see the talk page for more information. (November 2010)

Joseph Ronald Banister is a former Special Agent of the Criminal Investigation Division of the
Internal Revenue Service (IRS) and IRS whistleblower. Banister resigned from the IRS and later
appeared on the television program Sixty Minutes II challenging the conduct of the IRS
concerning legal issues with taxation. Banister's books and other material challenge the legality
of some aspects of the income tax.

Contents
[hide]

• 1 The Banister/Thompson case

• 2 Revocation of CPA license and disbarment from practice before the IRS
• 3 IRS investigation of alleged abusive tax scheme
• 4 Other personal tax problems
• 5 Notes

• 6 External links

[edit] The Banister/Thompson case

In 2004 Banister was charged with one count of conspiracy to defraud the United States[1] and
various counts of willfully aiding, assisting counseling and procuring the filing of a false
amended income tax return[2] in connection with his alleged assistance of a client, Walter Allen
Thompson. Thompson owned and operated Cencal, an aviation and flight bag manufacturing
business. Cencal employed a number of hourly wage workers who were predominantly
seamstresses, production workers and office workers. In July 2000, Thompson removed all of the
employees from the taxpayer rolls by no longer withholding employment taxes from wages and
salaries, by not filing Forms 941, and by not providing employees or the IRS with annual wage
or other income statements, Forms W-2 or 1099.

Thompson was charged numerous tax-related offenses. On January 28, 2005, he was found
guilty of two counts of knowingly filing false claims against the United States under 18
U.S.C. § 287, ten counts of willful failure to collect and turn over taxes under 26 U.S.C. § 7202,
and one count of willfully filing a false income tax return under 26 U.S.C. § 7206.[3] Thompson
was acquitted on one count of conspiracy to defraud the United States under 18 U.S.C. § 371.[4]
Thompson was sentenced to serve 72 months in prison and was fined $7,500.[5] The case against
Banister continued, and Banister was eventually acquitted of the charges against him.[6]
[edit] Revocation of CPA license and disbarment from
practice before the IRS
Banister's license as a Certified Public Accountant was revoked by the California Board of
Accountancy, effective March 7, 2007.[7]

The web site for the California Board of Accountancy notes that in December 2003, the U.S.
Department of the Treasury ordered Banister disbarred from practice before the Internal Revenue
Service (IRS),[8] and that the disbarment was finalized in June 2004. The California Board of
Accountancy also states:

On December 24, 2003, a decision in United States Department of Treasury Complaint

No. 2003-2, Director, Office of Professional Responsibility v. Joseph R. Banister,
ordered Mr. Banister disbarred from practice before the Internal Revenue Service (IRS).
Mr. Banister appealed the decision. In a June 25, 2004, decision, the Department of
Treasury denied Mr. Banister's appeal and adopted as its final agency action the
underlying decision disbarring Mr. Banister from practice before the IRS.
The Department of Treasury found that Mr. Banister provided erroneous advice to
taxpayers, including improperly advising them that tax returns were not required because
IRS Code sections 861 through 856 define "source of income" in a manner that excluded
the income of United States citizens residing in the United States from United States tax.
[9]

[edit] IRS investigation of alleged abusive tax scheme

The Internal Revenue Service is investigating Joseph Banister "to determine whether Banister
promotes abusive tax schemes that would subject him to penalties under 26 U.S.C. § 6700 or
subject him to injunction under 26 U.S.C. § 7408," and has issued a summons to an attorney
named Robert Bernhoft in connection with the investigation.[10]

[edit] Other personal tax problems

On August 27, 2008, the United States Tax Court ruled that Banister was liable for federal
income taxes and penalties for failure to file his 2002 federal income tax return and report, as
income, over $23,000 in a distribution from a retirement plan and other income.[11]

On December 30, 2010, he was acquitted of all charges by a jury of his

peers [12].

[edit] Notes