PASS CHRISTIAN — A Pass Christian doctor has been convicted of tax evasion for using a phony church as a tax shelter.
Timothy Dale Jackson, a 50-year-old orthopedic physician, has been found guilty on four counts of felony tax evasion and one count of obstruction of the due administration of the internal revenue laws.
Prosecutors say Jackson funneled his income through a Utah church founded as a tax shelter for its members.
Jackson had argued he took a vow of poverty in 2003 with the “Church of Compassionate Service,” an entity located in Utah later ruled in federal court to be nothing more than a “tax fraud scheme.”
Jackson argued that as a minister of the church he was exempt from paying any income tax. Despite his vow of “poverty,” prosecutors proved he made a substantial income practicing medicine, but had not filed a tax return or paid any income tax since 2003.
Prosecutors say Jackson, like the other members of the “church,” would “donate” their money to the church, but nearly all of it came back to him through church-owned debit cards and other means designed to conceal his income from the Internal Revenue Service. . The evidence showed 90 percent of Jackson’s income was returned to him, authorities said.
The IRS estimated Jackson owed more than $650,000 in taxes from 2006-2009 alone on income of $1.8 million, according to court records.
Jackson is scheduled for sentencing on Dec. 18 by U.S. District Court Judge Sul Ozerden.
Jackson is facing a maximum sentence of five years and a $250,000 fine for each count of tax evasion, and three years in prison and a $250,000 fine for obstructing the IRS.
Jackson’s business affiliations include Moriah LLC and a surgery center with offices in Gulfport and Diamondhead. He also performs surgeries at several South Mississippi hospitals.
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