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A Walland couple are named in an 11-count federal income tax indictment that was returned earlier this month but was sealed until their arrest Monday.

Brett Edward Dirr, 44, and his wife, Renee Dirr, 50, Burnett Road, had their initial appearance before U.S. Magistrate Judge C. Clifford Shirley Jr.

Both of the Dirrs were charged with conspiracy to defraud the U.S. by attempting to impede, impair, obstruct and defeat the collection of income taxes by the Internal Revenue Service (IRS), according to a press release from the Department of Justice, U.S. Attorney James R. Dedrick, Eastern District of Tennessee.

Additionally, Brett Dirr was charged with five counts of income tax evasion and five counts of failure to file tax returned for calendar years 2001 through 2005.

According to the indictment, Brett Dirr provided either a false W-4 or a Withholding Exemption Certificate in lieu of a Form W-4 to his employer, claiming he was exempt from withholding for the tax years 2001 through 2005. It is also alleged that the Dirrs transferred ownership of their residence in Walland and their automobiles to a “nominee entity” created by them to conceal assets from the IRS.

It is also alleged the Dirrs filed affidavits with various federal, state and local government officials and offices claiming they were “natural-born, free adult citizens of the Indiana Republic” and “California Republic” and therefore not subject to federal income tax laws and that they also purchased a Reliance Defense Package for the purpose of establishing a defense against possible tax prosecution.

Lastly, the indictment alleges that over five years Brett Dirr failed to pay income tax of more than $64,000 on approximately $374,937 in income.

If convicted of conspiracy to defraud the U.S., both the Dirrs face up to five years imprisonment, up to three years supervised release, a fine of up to $250,000 and a $100 special assessment.

If convicted of tax evasion and failing to file an income tax return, Brett Dirr faces up to five years imprisonment, up to three years supervised release, a fine of up to $100,000 and a $100 special assessment on each count of tax evasion and up to one year in prison, one year of supervised release, a fine of up to $25,000 and a $25 special assessment on each count of failing to file an income tax return.

An arraignment is set before the magistrate judge at 3:30 p.m. April 21.

The investigation was conducted by IRS Criminal Investigation.