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YOUR HONOR, YOU'RE FIRED!

January 21, 2005

When you're really, truly, doomed, an absurd and futile gesture sometimes is irresistable. That's the approach an Oregon-based tax scammer took when the IRS moved to shut down her operation.

Judy Harkins sold "corporation sole" arrangements for "American Tax Consultants." These deals purported to enable customers to avoid tax using a corporate form used by religious and charitable entities. Of course, it doesn't work.

A court order published today by Tax Analysts shows that Ms. Harkins refused to respond to the IRS motion for a permanent injunction against her activities or produce documents. Instead she sent a document called "Return of Unacceptable, Irrelevant, and Immaterial Documents" and said "this case is closed with the consent of all concerned." The district judge takes it from here:

   Defendant further stated that plaintiff's failure to prove 
   that it has not engaged in mail fraud by serving the 
   above referenced documents on the defendant acts as 
   plaintiff's "admission that you are harassing me and 
   have made an extortion demand under the color of law, 
   and to your consent of my filing a criminal action against
   you in a court of competent jurisdiction for harassment 
   and extortion as Respondents have failed to provide 
   their credentials/power of attorney to make any 
   legitimate demands on me." Finally, defendant states 
   that, "all respondents, Mike Mossman [sic], Karin J. 
   Immergut, Donald N. Dowie, Robert D. Metcalfe and 
   [this court), are fired in as much as they presume to 
   make any legal determination for me.
                                           (emphasis added)

As "Otter" in "Animal House" recognized, "I think that this situation absolutely requires a really futile and stupid gesture, to be done on somebody's part." Ms. Harkins was up to the task.

It wouldn't be a futile gesture if it worked. Of course, there was no risk of that happening. Quatloos has more on Ms. Harkins.

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