Chatham County Man Pleads Guilty To Tax Evasion

Date:  March 5, 2008

RALEIGH – A Pittsboro man pleaded guilty Wednesday in Wake County Superior Court to tax charges filed by the North Carolina Department of Revenue.

Walter D. Martin, 38, of 79 Green Meadow Court, Pittsboro pleaded guilty on March 5, 2008 to one count of attempting to evade or defeat the North Carolina individual income tax.

Wake County Superior Court Judge Carl Fox sentenced Martin to a five-month minimum, six-month maximum prison term. The sentence was suspended and Martin was placed on supervised probation for 24 months. He was ordered to pay a $1,000 fine and perform 100 hours of community service. He was also ordered to timely file and pay the tax due on all future state and federal income tax returns. Fox admonished Martin, saying that two things every citizen must do are serve jury duty and pay their taxes.

The state’s evidence showed that Martin prepared and filed a fraudulent 2006 state individual income tax return after previously being reprimanded by the Department of Revenue for filing a false 2005 return. Martin prepared fraudulent W-2s for himself and his wife in both years, claiming zero taxable wages earned from their employers, UNC Hospitals of Sanford and the Kernodle Clinic, of Burlington. Martin’s 2005 return was audited by the state and found to be based on false claims frequently used by citizens who protest their responsibility to pay taxes. His return was adjusted and he was assessed a frivolous return penalty. After receiving the Department’s decision and settling the 2005 liability, Martin subsequently prepared and jointly filed a false 2006 North Carolina individual income tax return in the same manner as he had the 2005, claiming that he and his wife’s wages were not taxable based on his interpretation of the U.S. Constitution and the Internal Revenue Code. Martin claimed refunds to which he was not entitled totaling $10,063. His actions were an attempt to evade and defeat the state’s income tax.

Martin filed corrected returns and paid restitution prior to his plea. The charges resulted from an investigation by a special agent with the Department’s Criminal Investigations Division in Raleigh.

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