The State

Robert D. Huffaker, who preached to audiences that income from wages is not taxable, was indicted on 40 charges of preparing fraudulent federal income tax returns, U.S. Atty. Donald B. Ayer announced in Sacramento. "Now that the tax season is upon us," Ayer told reporters, "we hope that this indictment will serve as a warning." Huffaker was arrested Sunday at his residence in Nevada City. Also charged were Frederick L. Thompson, who was arrested at the Solano County fairgrounds, and Oscar E. Jinson, who surrendered to U.S. marshals in Sacramento. Ayer said Huffaker's organization, most recently called Sons and Daughters of the Republic, held public meetings to spread his belief that money received in compensation for work is not income that has to be reported to the Internal Revenue Service. The indictment alleges that Huffaker prepared income tax returns for individuals that understated income by thousands of dollars.

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