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NEWS RELEASE FROM DEPARTMENT OF JUSTICE
February 13, 2001
 WASHINGTON, D.C. -- The Department of Justice filed a
civil suit to halt the sale of tax plans written and promoted
by Joseph N. Sweet and EDM Enterprises, both of Bradenton,
Florida, that allegedly encourage taxpayers to violate tax
 According to the complaint, filed late yesterday in U.S. District Court
in Tampa, Sweet and EDM Enterprises advise or encourage taxpayers to violate
the tax laws in a book written by Sweet and sold by him and EDM Enterprises,
along with other tax planning advice and services.
 The book, titled "GOOD NEWS For FORM 1040 Filers: Your Compliance
is Strictly VOLUNTARY! BAD NEWS For The IRS! Everything You Ever Needed to
Know About the Income Tax That the IRS Is Afraid You'll Find Out," allegedly
advises taxpayers not to file federal income tax returns with the IRS or pay
federal taxes, under the theory that wages are not taxable income.
 The complaint also alleges that Sweet and EDM Enterprises, in the book
or orally, make a number of other false or fraudulent statements, including
claims that the filing of federal income tax returns is voluntary and that
individuals are exempt from the internal revenue laws that require the withholding
of federal income and social security taxes.
 In addition, the complaint alleges that form letters and other documents
contained in the book show taxpayers how to avoid wage withholding by their
employers even though these taxpayers are subject to withholding under the
 Sweet and EDM Enterprises also improperly advise taxpayers that non-wage
income can be sheltered from federal income tax through business trusts that
Sweet and EDM establish and sell, the complaint alleges.
 According to the complaint, at least 650 individuals have purchased books
and other plan materials and at least 400 trusts have been purchased from Sweet
or BDM Enterprises. The estimated potential loss of revenue as a result of
Sweet's and EDM Enterprises' conduct exceeds $6.5 million.
 Claire Fallon, Acting Assistant Attorney General of the Tax Division, Department
of Justice, said, "The use of trusts to illegally evade
taxes is under close scrutiny by the Internal Revenue Service
and is an enforcement priority for the Department. We hope
that taxpayers are aware that there are a number of abusive
trust schemes being promoted so they will be careful to avoid