[Pat R.]

Incline man charged with tax evasion

ASSOCIATED PRESS

RENO, Nev. (AP) - An Incline Village man has been indicted by a federal grand jury on tax evasion charges, including one that he created a church with himself as minister as a tax dodge.

Paul Jensen is charged with presenting false claims to the IRS for more than $100,000 in tax refunds and failing to pay taxes on more than $500,000 in income.

The indictment includes three felony counts of false claims and three more of tax evasion.

The indictment said Jensen created "an International Academy of Lymphology" auxiliary church, opened a bank account in its name and set it up so only he could sign on the account. He claimed the church had a tax-exempt status.

Jensen submitted claims to the IRS requesting tax refunds for 1997 through 1999 totaling $117,956.

The claims stated he and his spouse had no reportable income for those years when, in fact, they made $534,206.

Jensen also is charged with failing to pay income tax in 2000, 2001 and 2002, even though he had taxable income totaling more than $500,000 during those years.

Natalie Collins, a spokeswoman for the U.S. attorney's office, said Jensen filed "a vow of poverty" with Washoe County and transferred the deed to his Incline Village home and the title to his vehicles to trusts that he had set up with offshore entities and bank accounts.

She added that he had his former employer, Polar Air Cargo, pay his wages directly to the church.

If convicted, Jensen faces up to five years in prison and a $250,000 fine on each count.