Wesley Snipes' tax guru's vacation from the tax advice business has been extended. From a Department of Justice press release (no free link yet available): Four promoters of a Florida-based business that sold illegal tax defiance schemes, American Rights Litigators/Guiding...
Wesley Snipes is still fighting his 3-year prison sentence for taking the foolish tax advice of Eddie Kahn. While Mr. Snipes is understandably unexcited about going to Club Fed, it could have been much worse. A Florida dentist yesterday received...
When tax time came around, a Utah couple took an unusual route to tax payment. Rather than, say, mail a check, they sent the IRS "Private Discharging and Indemnity Bond No. RA819570054US-HDG" in the amount of $5 million, with the...
Actor Wesley Snipes has received a delay for his 3-year sentence on federal tax charges. Variety reports that Mr. Snipes received an emergency stay of his sentence while pending motions on the case are heard. He had been scheduled to...
Pinnacle Quest International had all of the trappings of a successful multi-level marketing operation. They organized big conferences in resort destinations, and even sponsored a week-long Mediteranean cruise. But rather than selling household cleaners or nutrition supplements, they offered a...
A boise man whose "Freedom and Privacy Committee" promoted illegal tax avoidance schemes will be doing without freedom and privacy for awhile. Joseph Saladino was sentenced Wednesday to five years in federal prison on federal tax charges. From Oregonlive.com: Saladino...
The "tax honesty" movement has a long list of reasons why they say that the federal income tax is invalid. As convincing as they may sound in a seminar at the local motel, there's one problem that they can't overcome:...
Irwin Schiff has been to court again. Not surprisingly, he lost again. Mr. Schiff was a pied piper for the "Tax Honesty" movement, using various arguments to make the (hopeless) case that there really isn't an income tax, at least...
Peter Hendrickson, author of a book purporting to teach its readers to avoid the income tax by "Cracking the Code," has failed to get a judge to undo his recent conviction on tax charges. One of Mr. Hendrickson's arguments was...
A fifteen-year prison term seems like a funny way to break free from bondage, but that's the path ahead for Lindsey Kent Springer, the self-styled founder of Bondage Breakers Ministry. A federal judge in Oklahoma sentenced Mr. Springer and an...
Peter Hendrickson wrote a book "Cracking the Code: The Fascinating Truth About Taxation in America." To hear Mr. Hendrickson tell it, you don't really have to pay income taxes. Unfortunately for him, his sentencing judge appears not to have read...
It took a long time, but the IRS efforts to collect 1999 taxes from a Spirit Lake, Iowa man are finally scheduled to bear fruit a week from Friday. That's when the IRS is to auction two motorcycles and two...
Some folks unwisely try to draw deep lessons from the behavior of lunatics. Tax lawyer Peter Pappas provides some needed perspective: If you could rewind the lives of these people and view them on your DVD, you would find that...
I'd think twice about getting tax advice from somebody whose web site looked like this: Yet people still came to Carel Prater to buy quack advice about using the "Section 861 argument" that U.S.-source income is nontaxable. The injunction pictured...
When somebody tells you that a tax avoidance plan is legal at the same time he tells you how to hide your assets from the IRS, you might wonder: If this works, why do I need to hide my assets?...
The Legal Times blog reports that the IRS wins 86% of cases that end up in court. Is it because the IRS has home field advantage? That might be part of it, but the main reason is that so many...
Ed Brown, the tax protester who held federal marshals at bay for months while holed up in his New Hampshire house, yesterday received a 37-year prison sentence on weapons charges arising from the holdout. This will be served after he...
In blog comments, writing in all capital letters IS TREATED LIKE SHOUTING! (See how that works?). Does that explain this strange statement by a tax defendant recounted by The Tax Lawyer's Blog: For the record, my Christian name is Randy...
Tax protest pied piper William Benson has reached the end of the road in his efforts to keep his "reliance defense" tax reduction business alive. The Supreme Court last week denied a hearing to his appeal of a permanent injunction...
The author of "Cracking the Code: The Fascinating Truth About Taxation In America," is finding out there's more to the tax law than he imagined: Peter Hendrickson, 54, of Commerce Township was found guilty today of making false statements to...
This year is the 40th anniversary of the worst summer ever, when the Cubs choked away a great big lead in the pennant race to the insufferable Mets, with their "you gotta believe" motto and their adoring homeboy media fans....
Nothing in the tax law depends on who Dad is, which is bad news for a Dallas man: An investment adviser convicted in a tax fraud case in which he claimed to be a "child of God" with citizenship in...
The feds have clearance to seize a defunct theme park built around the notion that dinosaurs and hominids co-existed. In a Tax Update exclusive, here is some conclusive evidence for that notion: Prior coverage: He should have told the judge...
I failed to notice until this morning that tax holdouts Ed and Elaine Brown were convicted on weapons charges while I was out on vacation. The Browns had retreated to their fortress-like New Hampshire home after their tax evasion convictions,...
Tax protest figure Devy Kidd: Federal prosecutors of the Department of Justice Tax Division, Robert Metcalfe and Robert Fay, their superiors in the Department of justice, Federal District Court Judges Filip and Der-Yeghiayan, and the 27 judges of the 7th...
Tax-defying couple Ed and Elaine Brown, who held out for months in a fortress-like compound in New Hampshire after they were convicted of tax evasion, were back in court yesterday to face weapons charges arising out of the holdout. It...
Tax Protesters -- or "tax defiers," as they are now known -- like to argue that the 16th Amendment authorizing an unapportioned income tax was never properly ratified, and therefore there is no income tax. Unfortunately for them, the IRS,...
The guy accused of murdering the abortionist in Kansas has a history as a tax protester, reports Peter Pappas. When somebody isn't deterred by murder laws, it's not too surprising that he isn't intimidated by tax laws either....
You'd think Robert Rodriguez would have given up on the Tax Court by now, as it had not only rejected his tax protest arguments for seven prior years, but had fined him $35,000 for making frivolous arguments. Yet he went...
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...
Do you think you can "crack the code" to get out of paying income taxes? If so, it's likely you have read Peter Hendrickson's book. The New York Times Magazine profiles Mr. Hendrickson this week. It's an interesting backgrounder on...
You don't see a 1947 Indian Chief motorcycle every day. A Spirit Lake, Iowa man who owns one may not see his much longer. Flickr Photo Indian 1947 by Angelique Eeek Michael Alan Reed stopped filing conventional tax returns after...
A former FBI agent with apparent links to jailed tax-protest figure Irwin Schiff and the "We The People" organization was arrested in Nevada on weapons charges last week. Jan Lindsey, 66, was arrested with three others. The four have pleaded...
Kent Hovind, who ran a theme park based on the notion that humans and dinosaurs were around at the same time, failed to convince a federal appeals court of his theories of the tax law last week. The court upheld...
Robert Schulz's "We The People" outfit has struck out in its efforts to litigate the income tax out of existence. Now they have apparently found another futile and absurd place to channel their talents: An anti-tax activist from upstate New...
The D.C. District Court of Appeals ruled last week that Walter Anderson, who is serving a 9-year sentence after pleading guilty to evading taxes on $450 million in income, also has to pay the taxes. The ruling overturns a district...
The "pure trust" scam is one of the more threadbare tax scams around, but as long as there are gullible folks, there's a market. A federal court in Arizona yesterday issued a permanent injunction against promoters of one of these...
Daniel Benham, a tax-protest scheme promoter, was convicted in U.S. District Court in Michigan last week of four counts of tax evasion. Mr. Benham has been under an injunction since 2006 preventing him from selling "corporation sole" and "strategic withdrawal"...
Convicted tax evader Robert Beale will now have something to look forward when he completes his 11-year tax evasion sentence. Another sentence. Mr. Beale, the former Minnesota entrepreneur who spent most of two years on the run after failing to...
I figured someday I would get a comment like this: You're against government taking private property (businesses) but you are gung-ho for taking private property (personal income taxes) and even ramping up IRS actions against tax protesters? This strikes me...
Peter Pappas tells the story of a Florida couple who have declared themselves "soveriegn." They have used their independence try to avoid the IRS and property taxes, and to create their own currency. Having a country apparently isn't all it's...
It was a bad week for Florida tax protest folks in federal appeals court. Perky pediatric dentist Nancy Montgomery-Ware failed to convince the 11th Circuit that her tax evasion was "willful." She stopped filing tax returns after the usual "hours...
Robert Beale put the judge in her place: "I do not consent to incarceration, fine or supervised release," he said. "I have not committed a crime." Unfortunately for Mr. Beale, Judge Ann Montgomery doesn't care whether he consents. Nor does...
When we last saw tax protest figure Joe Banister in court, he had been acquitted of tax conspiracy charges by a California federal jury. Tax protesters did a little victory jig at this "evidence" that their theories are other than...
An upstate New York chiropractor is the latest not-so-satisfied customer of tax-scam outfit "American Rights Litigators." John Weisberg received a 21-month sentence this week for charges arising out of tax advice purchased from ARL, founded by tax-protest figure Eddie Kahn....
The Eighth Circuit Court of Appeals has turned down the appeal of Paul Bowman, an Algona, Iowa man who lost a tax-protester case in the Tax Court that we noted here. Cite: Bowman, CA-8, NO. 072789....
Last summer we reported on the LaCrosse dentist who pleaded non-standard punctation as a defense to tax evasion charges. The trial judge didn't buy it, and the dentist got a 36-month sentence. The dentist, Frederick Kriemelmeyer, tried his luck with...
The Lord truly works in mysterious ways: PLAINFIELD – A man who says God, not the United States Treasury, owns the former home of Ed and Elaine Brown was arrested at the concrete-fortified residence Sunday morning after he set up...
A Tennessee couple is facing federal tax evasion charges based on their use of a "de-taxing" kit. Now they've hooked up with a "lawyer" who doesn't seem likely to be a great deal of help: An Arkansas attorney facing disbarment...
A few years ago anti-tax author Lynne Meredith was sentenced to prison for involvement with tax evasion schemes. Last week one of her loyal readers had his turn in a federal appeals court. James Ellet read Ms. Meredith's opus "Vultures...
A decorated Washington D.C. homicide detective was smart enough to crack tough murder cases, but not smart enough to stay away from tax protester arguments. Now he's going to get acquainted with the results of law enforcement himself. Michael C....
Kenneth Heath, a Michigan engineer, read Irwin Schiff's book and decided he didn't need to pay taxes. When the IRS came after him, he turned to American Rights Litigators and Guiding Light of God Ministries -- outfits run by Eddie...
The IRS has won a prelimnary injunction against "Pinnacle Quest International," a multi-level marketing organization alleged to have sold fraudulent tax schemes and tax protest scams via conferences on luxury cruise ships. We first covered Pinnacle Quest here. The name...
Robert Schulz, head of the tax protest organization "We the People Foundation," says he has turned over to IRS the names of 225 people who received "legal termination of tax withholding" kits from the foundation. From PostStar.com: Schulz, the founder...
After an eight-day trial, a Minnesota jury took all of two hours to convict Robert Beale of five tax evasion counts, on conspiracy count, and one count for failure to appear trial. The founder and former president of Minnesota computer...
Robert Schulz and his We The People tax protester organization continue to fare poorly in court. Yesterday a federal judge ruled that Mr. Schulz was in contempt of court for failing to turn over the list of purchasers of "tax...
The Snipes sentence - the maximum of three years in prison - is good news for the Government's campaign against "tax defiers." While three years is probably less than half what Mr. Snipes would have received had he been convicted...
Wesley Snipes has been sentenced to three years in federal prison, the maximum sentence for the three convictions for failing to file tax returns. He was not taken into custody immediately. Co-defendant Eddie Kahn, a well-known tax-protest figure, also received...
The sentencing hearing for Wesley Snipes has taken a lunch break. Based on this report from Ocala.com, Wesley may not have a great appetite: So far, at least, in the sentencing hearing, U.S. District Judge William Terrell Hodges has made...
Wesley Snipes will learn today how soon he can begin his next film project. He is scheduled to be sentenced for his conviction on three counts of failure to file his tax returns. He was acquitted on more serious tax...
A commenter on this post demands (in capital letters, which means he's very insistent) that I show him the law that requires him to pay taxes. We aim to please, so here you go: U.S. Code Title 26, Section 1,...
So it turns out yesterday's big effort to enjoin tax quacks from peddling their absurd "tax honesty" nostrums is part of a larger effort to squelch tax protest schemes: WASHINGTON – Today Nathan J. Hochman, Assistant Attorney General of the...
The U.S. Supreme Court declined to hear Illinoisan Danny Patridge's tax evasion appeal yesterday. Mr. Patridge represented himself when he asked for Supreme Court review, which isn't too surprising considering what happened to his lawyer in his last courtroom visit:...
Although Wesley Snipes may well do some time on his federal tax charges, he beat the rap on his most serious tax charges. Many taxpayers who make the same moronic arguments aren't so lucky. Russ Fox passes on the story...
Tax protest figure Robert Schulz has now achieved the unhappy distinction of having lost appeals in two different federal circuits in the last six months. Back in September the Eighth Circuit brushed aside Mr. Schulz's objections and ordered Paypal to...
Bloomberg reports that the IRS is launching a crackdown on Tax Protest movement -- the folks who say they have "cracked the code" and debunked the tax law. The TaxProf, Taxable Talk, and Don't Mess With Taxes have more. While...
If you are tired of talking about the Super Bowl, visit the TaxProf; he has assembled learned commentary on the Wesley Snipes verdict. I think Neil Buchanan of George Washington University gets it about right: Notwithstanding the focus on the...
Wesley Snipes was convicted on three misdemeanor failure-to-file charges this afternoon, but he beat the rap on his serious tax evasion charges. His advisors, Eddie Ray Kahn and Douglas Rosile, didn't fare so well. They were found guilty of consipracy...
The jury in the Wesley Snipes tax fraud trial completed its first day of deliberation today. The only news was that the jury asked the judge what "conspiracy" means. The judge will respond today after consulting the attorneys on both...
The Wesley Snipes tax evasion case went to the jury yesterday following closing arguments. The defense pictured Wesley Snipes attempts to pay taxes with bad checks and his groundless refund claims as examples of what is great about America. From...
Wesley Snipes' defense attorney Robert Bernhoft had hinted that he might call dozens of movie stars as defense witnesses. Today, though, he rested the defense case without calling a single witness. The defense contends that the prosecution proved nothing when...
If you were indicted on federal tax charges that could put you in prison for years, would you: a). Pour yourself a stiff drink. b). Flee the country c). Call a good lawyer and devote your time to preparing your...
Day 5 of the Wesley Snipes tax evasion trial featured an exploration of how the tax protest outfit "American Rights Litigators" operated. It existed by filing bogus refund claims, some of which didn't get stopped by the IRS service centers....
A man who helped Ed and Elaine Brown while they were holed up in their New Hampshire house pleaded guilty fo federal charges yesterday: Fifty-year-old Robert Wolffe of Randolph, Vt., pleaded guilty Tuesday to aiding and abetting Ed and Elaine...
The Wesley Snipes tax evasion trial resumed yesterday. It was an unglamorous day of testimony, devoted to identifying documents relating to Mr. Snipes place of residence. Ocala.com has the details. MARKETS IN EVERYTHING DEPARTMENT Russ Fox has come up with...
The first week of Wesley Snipes' tax evasion trial wrapped up with testimony from a former employee of his production company. Carmen Baker testified that Mr. Snipes told her to stop withholding from salaries. When she spoke to her own...
Wesley Snipes dusted off skills perfected by most high-schoolers in arguments with their parents when he started down the tax-protester path. This comes out of testimony yesterday by Mr. Snipes' former tax advisor, Kenneth Starr (no, not that Ken Starr)...
Five men and 11 women - 12 jurors and four alternates - learned yesterday that they will have to decide whether Wesley Snipes is a guilty crook or an innocent fool. From the Ocala Star Banner: In opening statements, federal...
The A.P. reports a puzzling turn of events in the Wesley Snipes trial yesterday. Mr. Snipes ostentatiously fired Daniel Meachum, his longtime lawyer, in the run-up to the trial, alleging that he was ineffective. Mr. Snipes asked for a trial...
The IRS released its updated list of frivolous tax arguments yesterday (Notice 2008-14). It added four more arguments to the list: * Misinterpretation of the 9th Amendment to the U.S. Constitution regarding objections to military spending. * Erroneous claims that...
The Wesley Snipes tax evasion trial gets underway today in Ocala, Florida. The TaxProf's roundup of big media coverage is a great resource for those interested in the issues. This will be the most high-profile trial yet of someone for...
The author of the tax protest standard "The Law That Never Was" now faces a permanent injunction against marketing tax protest kits. A federal court in Chicago has enjoined Bill Benson from marketing the "Reliance Defense Package," and the "16th...
Much as the presidential candidates have stepped up their frenzied efforts as the caucuses approach, Wesley Snipes is turning on the heat to pad his lead in our Taxpayer of the Year Contest. He reportedly has "broken his silence" on...
Attorney Jerold W. Barringer probably won't list Federal Appeals Judge Easterbrook as a reference on his next resume. Mr. Barringer has represented convicted tax evader Denny Patridge in civil and criminal tax litigation, losing every time. And he lost his...
The Tax Update questioned whether it was wise for Wesley Snipes to abandon the race card in fighting his tax evasion charges, in favor of a tax protester defense. It turns out that Mr. Snipes is taking both paths. From...
A video of Bob Schulz of the "We the People" tax protest group at IRS headquarters demanding that the IRS "show us the law" imposing an income tax. They could have saved themselves the trip to D.C. if they would...
UnionLeader.com reports that federal agents are asking questions to sniff out whether Ed Brown supporters will try to retaliate violently for Mr. Brown's arrest last week. During the standoff at his home after his tax evasion conviction, Mr. Brown spoke...
The feds didn't take the Janet Reno "burn 'em to save 'em" approach to the arrest of Ed and Elaine Brown; after months of patient waiting and watching, they arrested the armed tax protestors without a shot being fired. The...
It looks as though the marshals who arrested Ed and Elaine Brown got into the fortified compound by posing as supporters: CONCORD, N.H. (AP) - New Hampshire tax fugitives Ed and Elaine Brown were arrested by deputy U.S. marshals who...
Wesley Snipes has fired his high-profile attorney and replaced him with Robert G. Bernhoft, a lawyer with a checkered history in the tax protest world. Russ Fox reports at Taxable Talk: Interestingly enough, The Smoking Gun notes that Snipes' new...
Federal marshals arrested tax protesters Ed and Elaine Brown last night, peacefully ending a standoff that began back in January. They will now begin serving their 63-months sentences, with the prospect of more time for likely additional charges related to...
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