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Tax Protestor Dummies > GA
|FOR IMMEDIATE RELEASE
THURSDAY, APRIL 10, 2003
TDD (202) 514-1888
JUSTICE DEPARTMENT SUES TO HALT
GEORGIA MAN'S ALLEGED TAX SCAM
Suit Alleges that Morris James Sr. Promotes a Fraudulent
" Slavery Reparations Tax Credit"
WASHINGTON, D.C. – The Department of Justice today asked a federal court
to stop Morris James Sr. and his company, National Resource Information Center,
both of Montezuma, Ga., from promoting a nationwide, slavery-reparations tax
According to papers filed by the Justice Department in federal court in Macon,
Ga., James promotes the scam by selling "tax information packages" at
meetings held in churches throughout the United States. According to court
papers, the defendant and his organization provided bogus tax-return-preparation
services for more than 6,300 customers known to have purchased the packages.
"Claiming tax benefits for slavery reparations, segregation, treatment
as a second-class citizen, or on other similar grounds is illegal," said
Eileen J. O'Connor, Assistant Attorney General for the Justice Department's
Tax Division. "The Justice Department is taking vigorous action to stop
schemes that undermine the federal tax system and leave honest taxpayers footing
The Internal Revenue Service has included the slavery reparations scam on
the list of the "Dirty Dozen" tax scams that the agency has specifically
urged taxpayers to avoid. The whole list can be found at: http://www.irs.gov/newsroom/
Efforts by the IRS and Justice Department to shut down tax scams based upon
slavery reparations and similar claims have resulted in a 97 percent drop in
these claims in recent years, according to testimony by Dale Hart, Acting Deputy
Commissioner of the IRS's Small Business-Self Employed Operating Division,
before the Senate Finance Committee.
The Justice Department has previously obtained injunctions to stop five other
reparations-scam promoters or return preparers: Willie Haugabook of Montezuma,
Ga.; Eddie and Erma Mims of Sylvania, Ga.; Robert Foster of Richmond, Va.;
and Andrew L. Wiley, of Durant, Miss. For more information on these cases go
The Department has also prosecuted reparations promoters. In October 2001,
Vernon T. James of Carrollton, Texas, was convicted for preparing false, fictitious
and fraudulent federal income tax returns claiming the reparations credit.
Last year, a federal judge sentenced James to more than six years in prison
and ordered him to pay $1.2 million in restitution.