In 1973 Franklin McNulty, who was living on welfare in Oakland, Calif., won $128,410 in the Irish Sweepstakes. When he discovered that the Government expected to be paid about $35,000 in taxes on his winnings, he deposited his windfall in a bank on the island of Jersey in the English Channel. McNulty figured that money not brought into the U.S. could not be taxed by the IRS.
Not so, ruled a federal court in 1975.It sentenced him to five years in prison for tax evasion. With time off for good behavior, McNulty, 67, has served his sentence. But the IRS has filed...
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