In the indictment unsealed Thursday, a grand jury alleges that Kent Hovind failed to pay $473,818 in federal income, Social Security and Medicare taxes on employees at his Creation Science Evangelism/Ministry between March 31, 2001, and Jan. 31, 2004.
As part of the ministry, Hovind operated the Dinosaur Adventure Land at 5800 N. Palafox St., which included rides, a museum and a science center. He also sold literature, videos, CDs and other materials and provided lecture services and live debates for a fee.
The indictment alleges Kent Hovind paid his employees in cash and labeled them "missionaries" to avoid payroll tax and FICA requirements.
This is sort of interesting legally. I think there are tax rulings that state direct payments can be made to missionaries and be tax deductible. Now, I think calling all of his employees missionaries is probably a stretch, but there is no doubt, from his religious perspective, that the theme park is a ministry, and as a ministry, why can't he count all workers as missionaries?
It's a loophole, and I kind of doubt he will prevail, but at the same time, making it a criminal offense to take advantage of legal tax loopholes....is that right?
The indictment also says the Hovinds' made cash withdrawals from AmSouth Bank in a manner that evaded federal requirements for reporting cash transactions.
The withdrawals were for $9,500 or $9,600, just below the $10,000 starting point for reporting cash transactions.
Most of the withdrawals were days apart. For example, the indictment shows three withdrawals of $9,500 each on July 20, July 23 and July 26 in 2001.
I don't get this at all. So it's illegal to withdraw amounts that will draw less notice? I suppose this is a conspiracy charge, meaning that he was hiding criminal actions, but once again, if the workers are legally missionaries, then how is this illegal?
Iam not saying this is wholly ethical or legal on Hovind's part, but the tax system does have all sorts of deductions, loopholes, etc,...and maybe he is completely within his rights here, and the IRS is just ticked off about it.
Frankly, I am not sure anyone, the IRS, accountants, lawyers or tax judges understand all the intricacies of the tax code and tax rulings. You may not like Hovind, but saying he definitely committed a crime here is wrong. The mere fact he is indicted does not mean he is guilty.
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