MICKEY GATES: Claims 'good faith' in defense of felony state income tax avoidance charges.

The Hot Springs Sentinel-Record reports on a hearing in the felony tax case against Republican Rep. Mickey Gates of Hot Springs in which his attorney, Jeff Rosenzweig, laid out a “good faith” defense for Gates failure to file income tax returns.

Gates is only charged with failure to file in six years, on account of the statute of limitations, but the special prosecutor has said he failed to file for 15 years, 2003-17.


Rosenzweig contended Gates had been working with the state on taxes and had been paying $1,500 a month on more than a quarter-million in taxes reportedly owed for the last six years, but a workout had been stymied by differences on what Gates could claim as business losses to offset income.

Gates contends he suffered losses because a former employee stole information used to help a competitor. Gates sells advertising specialties, such as knives imprinted with commercial brands.


“The defense in this case is good faith,” Rosenzweig said following a motion hearing Thursday at the Garland County Court House. “It’s that he did what DFA told him to do. There were some issues dealing with calculations years before this event was still being hashed out. As a consequence, he did what they told him to do and handled it in the way he understood they told him to do it.”

Rosenzweig is seeking state records that will substantiate the defense. The article doesn’t mention whether Rosenzweig addressed Gates’ failure to file in the nine years preceding the six being contested.

Gates goes to trial in July.


PS: Re “good faith”:

Remember when Gates introduced legislation to cut from 10 to 7 years the time the state could go after tax deadbeats?