Luckless Irishman

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 a suit to collect its bill--now $70,000 because of additional penalties--and Judge Alfonso J. Zirpoli has ordered McNulty to stay in jail until he complies. Says McNulty: "I've held out for almost four years, and I'll hold out until I see justice and freedom served." Not to mention his bank account.

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