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Appeals Court tells author of 'The Law that Never Was' that his injunction still is.

April 07, 2009

Bill Benson is famous in tax protester circles for his book "The Law that Never Was." The book argues that the 16th Amendment, authorizing an unapportioned income tax, was never properly ratified, so the income tax is invalid.

Mr. Benson also had a sideline of giving bad tax advice. He sold $3,500 "Reliance Defense" packages, where he provided documents purporting to get you out of paying taxes based based on "reliance" on a belief that you don't have to pay taxes.

The IRS never really took to Mr. Benson's arguments, and last year a District Court enjoined Mr. Benson from selling his package. Yesterday the Seventh Circuit upheld the injunction -- and expanded it by ordering Mr. Benson to turn over his customer list for his Reliance Defense. The IRS is likely to give Mr. Benson's customers more from their purchases than they bargained for.

For an example of how using the Reliance Defense works out, go here.

Cite: US v. Benson, CA-7, Nos. 08-1312 and 08-1586

Tags: Bill Benson.tax protesters.