October 17, 2004 in Region

IRS supervisor to fight federal charges

Associated Press
 

HELENA – A Billings supervisor for the Internal Revenue Service will plead not guilty to charges he obstructed collection of taxes from the hospital in Forsyth, his lawyer said Saturday.

A day earlier the U.S. Justice Department announced the indictment of IRS employee Roy Yurt.

The indictment says he had a 20-year relationship with the board president for Rosebud Community Hospital and took steps to ensure delinquent payroll taxes could not be recovered from hospital officials through a penalty.

The case results from “struggles and rivalries within the IRS itself … and a long-standing personality conflict,” said Larry Jent of Bozeman, Yurt’s lawyer.

“Mr. Yurt intends to go to trial.”

Gary Fjelstad, president of the hospital board since 1997, said earlier that investigators characterized the relationship between him and Yurt incorrectly. Fjelstad, a Rosebud County commissioner, said no favors were expected or received from Yurt or anyone else in the IRS.

Yurt is charged with conspiracy to defraud, obstruction of administrative proceedings and seven counts of willful misconduct.

The indictment charges that rather than working to collect some payroll taxes owed by the hospital, Yurt ordered the case closed.

© Copyright 2004 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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