Jury convicts Commerce Twp. tax protester

Paul Egan / The Detroit News

Detroit -- A federal jury Monday convicted tax protester and author Peter Hendrickson on 10 counts of filing false documents.

Hendrickson, 54, of Commerce Township and the author of "Cracking the Code," could face prison when he is sentenced by Chief U.S. District Judge Gerald E. Rosen on Feb. 9. Each count is a three-year felony.

Hendrickson's trial began Oct. 20 on charges he falsely reported zero or nominal income on his 2000-06 tax returns when he earned tens of thousands of dollars each year.

Testifying in his own defense, Hendrickson told jurors that income tax is an excise tax and excise taxes may only be levied upon those who benefit from a government privilege such as a government job. But the government called expert witnesses from the Internal Revenue Service who rejected Hendrickson's arguments.

The jury deliberated less than half a day.

Hendrickson, who was comforted by his wife, Doreen, and other family members, said he plans to appeal.

He criticized Rosen for instructing jurors on what the law said, rather than giving them copies of the relevant statutes.

"He relieved the prosecution of its burden in this case," Hendrickson said of the judge.

In 2007, U.S. District Judge Nancy G. Edmunds barred Hendrickson and his wife from filing tax returns on which they falsely reported their incomes as zero. The order came in response to a lawsuit filed against Hendrickson by the U.S. Justice Department. Edmunds found Hendrickson's position on income tax to be "false and frivolous."

Hendrickson, who is free on bond to await his sentencing, was convicted in 1992 for failing to file a federal income tax return and for a conspiracy involving a fire bomb placed in a bin at a Royal Oak post office.

Hendrickson could face sentencing guidelines of 21-27 months on the latest convictions, an official said.