A 63-year-old Montana dentist has been sentenced to 40 months in prison for tax evasion.
Great Falls dentist James Zander, DDS, was sentenced in federal court for criminal conduct resulting in a tax debt of more than $1 million He made approximately $2.9 million in unreported income from 2001 to 2009, according to a KRTV.com story.
From 2002 to 2010, Dr. Zander evaded his 2001 tax liability through several means, including filing a return filled with zeros and funneling income from his dental practice to a various entities, government investigators said. Dr. Zander also obstructed federal tax collection efforts by sending notices and demands to government employees and filing a frivolous lawsuit against a U.S. Internal Revenue Service agent. He also failed to file legitimate tax returns from 2002 to 2009, incurring a total tax debt of more than $1 million.
Dr. Zander last filed a legitimate individual income tax return in 2000, according to the U.S. Attorney's Office. He told his accountant that he found a method for not filing his tax returns, although he was warned that he should be filing.
In 2004, Dr. Zander filed a 2001 income tax return listing zeros for his income and requested a $27,131 refund. He also submitted documents espousing tax defier arguments. In later years, Dr. Zander either filed a return filled in with zeros or no return at all.
He sent the U.S. Treasury Secretary two $300 million "private indemnity bonds" purporting to offset his pre-existing and future liabilities.
Despite Dr. Zander's tax debt, his dental practice earned more than $1 million from 2006 to 2009, according to a statement from the U.S. Attorney's Office. From 2003 to 2009, he spent $274,905 on precious metals, and from 2002 to 2009 he spent $108,168 on five parcels of land, the statement noted.
