Washington (July 30, 2004) — The Department of Justice is suing in federal court in Sacramento, Calif. to collect more than $500,000 in unpaid employment taxes, penalties and interest from a Redding, Calif., employer who has openly refused to withhold federal taxes from his employees' wages.

Walter Allen "Al" Thompson, the employer named in the complaint, appeared on the television program "60 Minutes II," where he asserted that wages are not taxable and that employers need not withhold federal taxes from their employees' wages.  Thompson does business as Cencal Aviation Products, which makes jackets, flight bags and other accessories for private pilots.

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