DENVER - Brian Eugene Annis, age 55, of Fort Collins, Colorado, was indicted by a federal grand last week on charges of tax evasion, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Annis appeared in court today for his initial appearance before U.S. Magistrate Judge Kristen L. Mix, where he was advised of the charges pending against him. He is scheduled to be arraigned Magistrate Judge Mix’s courtroom on April 18, 2014 at 1:30 p.m.
According to the indictment, from 2001 through at least the end of 2010, Annis was a resident of Fort Collins, Colorado and for those years he willfully did not file personal federal income tax returns. From at least on or about April 15, 2002, and continuing until at least March 21, 2010, Annis willfully evaded the payment of federal income taxes due and owing by him for the tax years 2001 through 2006, in an amount totaling approximately $131,307, plus interest and penalties allowed by law, by committing and causing to be committed affirmative acts of tax evasion.
Particularly, in 2004 Annis paid Creative Consulting Group and J.H. $2,100 to create an “International Business Trust" called Glacier Mountain Holdings and to appoint J.H. as the “Managing Fiduciary Party." In December 2004 Annis and his spouse signed a Grant Deed to convey to Glacier Mountain Holdings their “equitable interest" in their personal residence located in Fort Collins, Colorado. In December 2005, a Grant Deed signed by J.H. conveyed back to Annis and his spouse the “equitable interest" in their personal residence.
In August 2006, the IRS mailed Annis multiple correspondences, which included substitute returns for the tax year 2001 and 2002 that the IRS prepared for Annis informing him that he owed the IRS taxes in the amount of $22,640 and $25,145, respectively.
In September 2006, Annis sent two letters to the IRS, for the two corresponding tax years aforementioned. In both letters, Annis disputed that he was subject to federal income taxes. In response to further correspondence by the IRS Annis sent the IRS additional letters stating: “I do not agree with any of the findings/adjustments in your letter dated 20-Oct-2006…. The federal income tax is an excise tax on privileged pursuits, not on common-occupation labor. As a private sector worker engaged only in un-privileged activity, compensation for my ‘common wage’ labor is outside the scope/jurisdiction of the federal income tax." Throughout the course of the next several months into 2007, Annis sent similar correspondence to the IRS.
In November 2007, Annis sent J.H. an email in which Annis stated, “For now, we need to get the house back into the trust……I don’t know when the IRS is going to do an asset search (maybe they already have)." On December 4, 2007, Annis and his spouse signed a Grant Deed to convey to Glacier Mountain Holdings their “equitable interest" in their personal residence. Between at least December 4, 2007, and March 21, 2010, Annis annually paid Creative Consulting Group and J.H. to maintain Glacier Mountain Holdings.
“As we are all aware, today is tax day and most Americans will have fulfilled their tax obligation by the end of the day. Those individuals who commit tax fraud are merely stealing money and creating an unfair tax burden on honest tax paying citizens. Rest assured, IRS Special Agents will continue doing their job to ensure honest individuals do not have to pick up the tab of those committing tax evasion," said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
Annis was charged with; one count of tax evasion, which carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000 per count; four counts of failure to file a tax return, which carries a penalty of not more than 1 year in federal prison, and a fine of up to $100,000, per count.
This case was investigated by Internal Revenue Service - Criminal Investigation and prosecuted by Assistant U.S. Attorney Pegeen D. Rhyne.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Source: U.S. Department of Justice, Office of the United States Attorneys
