Scams > Tax
Protestors > EXHIBIT:
Tax Protestor Dummies
These are people who really believed in the tax protestor literature,
who followed it to the letter, and then was either sent to prison for tax evasion,
or sanctioned or fined for asserting a stupid theory in court, or had some goofy
case against the IRS dismissed, etc. These cases demonstrate conclusively that
irrespective of what the scam artists who sell the tax protestor materials tell
you, the only thing that will happen is that you will get creamed by the IRS
in court. Oh, and you will also have lost the money you paid for the materials,
your defense attorney's fees, the value of your lost time fighting the IRS,
and your reputation as a sensible individual.
Recent Losses by the Tax Protestor Idiots:
States v. Schiff; Americas leading untax expert is
convicted of three counts of attempted tax evasion and one count of willful
failure to file. Some expert!
States v. Schiff; Schiff tries for a reduced or corrected sentence on
the grounds that his fee speech and free association rights were being violated,
and that by filing a tax returns he was being compelled to testify against
him self. He loses, again.
Schiff v. United States;
Schiff tries for a reduced or corrected sentence on the grounds that his
fee speech and free association rights were being violated, and that by
filing a tax returns he was being compelled to testify against him self.
He loses, again.
Schiff v. Cox; Schiff
files a Writ of Habeas Corpus to try to get out of jail. He loses this too.
In re Schiff; Schiff
also files a Writ of Mandamus. It is denied too.
Commissioner; T.C. Memo. 1999-422; No. 16008-98 (December 27, 1999)
Tax evasion promoter who established exempt organizations for individuals
was liable for the fraud and failure-to-file penalties, and on its own motion,
assessed the maximum section 6673 penalty for abuse and delay.
v. Department of State Revenue; Cause No. 49T10-9806-TA-70 (January
21, 2000) Argued that wages are not income under either Indiana law or the
Internal Revenue Code.
United States; 85 AFTR2d Par. 2000-348; No. 99-5117 (January 11, 2000)
Argued that as Ohio private citizens they are not subject to U.S. income
v. United States; 85 AFTR2d Par. 2000-355; No. 94-0936-CV-W-6 (December
Court held that insurance proceeds payable to wife of tax protestor could
by levied upon by the IRS since the couple had structured their affairs
specifically to avoid the IRS's lien for back taxes owed.
v. Commissioner; T.C. Memo. 2000-26; No. 15225-98 (January 21, 2000)
Argued that the federal income tax laws apply only to employees of government-related
v. United States; 84 AFTR2d Par. 99-5618; No. 99-CV-70323-DT (November
Argued that he was not required to provide incriminating information to
the IRS under the Fifth Amendment.
v. United States; 85 AFTR2d Par. 2000-390; No. 98-4021 (August 4, 1999)
Aruged that the income tax established under the Internal Revenue Code ("IRC")
does not apply to him because, inter alia, there is no statute or regulation
that makes him "A PEOPLE, A Private Christian" liable under the IRC; as
"A PEOPLE, A Private Christian" he did not earn "wages" or "gross income"
as defined in the IRC or regulations; and he had no taxable "income" according
to the meaning of the term and the Supreme Court's definition of the term.
v. Commissioner; T.C. Memo. 2000-34; No. 16871-98 (February 3, 2000)
Argued, among other things, that letters addressed to "Dear Taxpayer"
were fraudulent, and that "income" cannot be defined -- In addition
to losing, he additionally received a $5,000 fine from the court for making
Commissioner; 85 AFTR2d Par. 2000-419; No. 2:99-2428-23AJ (January
10, 2000) Aruged that they are not "persons" within the meaning of the IRS
statutes as they are instead "citizens of the Sovereign State of South
Carolina" and cannot be taxed by the United States
Other Losses by the Tax Protestor Idiots:
v. Melton, No. 94-5535 (4th Cir. 1996)
Argued that the law requiring them to pay taxes and file returns is unclear.
v. Ross, No. 93-1010 (7th Cir. 1995)
Argued that the district court lacked jurisdiction because Indiana is not
part of the United States, and because there were no regulations issued
to implement the criminal statute under which he was convicted.
States v. Gardell, No. 93-1916 (1st Cir. 1994)
Argued that he has no obligation to pay taxes because he has "the Status
of Freeman and . . . has no Contractual, Quasi-Contractual or implied agreements
with the Federal Government."
v. Gerads, 999 F.2d 1255 (8th Cir. 1993)
Argued that the district court did not have "inland jurisdiction,"
that wages are untaxable, that the income tax is voluntary, and that they
were "Free Citizens of the Republic of Minnesota.
States v. Steiner, 963 F.2d 381 (9th Cir. 1992)
Argued that the district court lacked jurisdiction over "sovereign
citizens," that he was not a "taxpayer" under the federal
tax laws, and that the word "includes" is a term of restriction,
v. Sloan, 939 F.2d 499 (7th Cir. 1991)
Argued that there is no law imposing a tax on income, that "freeborn"
state citizens are exempt from income tax, and that an individual is not
a"person" under the tax code.
States v. Saunders, 951 F.2d 1065 (9th Cir. 1991)
Argued that IRS summonses are invalid without an OMB control number, that
the IRS lacks authority to issue and enforce summonses because no Treasury
Delegation Orders were published in the Federal Register, and that the district
court has no jurisdiction.
v. Hicks, 947 F.2d 1356 (9th Cir. 1991)
Argued that he should be acquitted of tax evasion because the IRS failed
to display OMB numbers on Form 1040 and because the IRS failed to publish
Form 1040 in the Federal Register.
United States, 919 F.2d 830 (2nd Cir. 1990)
Argued that federal reserve notes are not taxable income, that the Constitution
does not authorize an income tax, and that tax assessments are takings.
v. Bowers, 920 F.2d 220 (4th Cir. 1990)
Argued that the IRS failed to comply with the publication requirements of
the Administrative Procedure Act.
v. White, No. 89-10533 (9th Cir. 1990)
Argued that there is no law requiring him, as "a sovereign citizen
of the state of Nevada," to file income tax returns.
States v. McDonald, No. 88-5239 (9th Cir. 1990)
Argued that as a "white, natural born, state citizen," the income
tax does not apply to him, that he is not a "person" or a "resident,"
and that the district court lacked jurisdiction.
In re Becraft,
885 F.2d 547 (9th Cir. 1989)
Argued that the Sixteenth Amendment does not authorize a direct non-apportioned
tax on citizens residing in the United States.
United States, 868 F.2d 236 (7th Cir. 1988)
Argued that the Sixteenth Amendment was never legally ratified.
v. Genger, No. 87-1043 (9th Cir. 1988)
Argued that the district court erroneously exercised admiralty jurisdiction
over him, and that filing a federal tax return violated his First Amendment
right to freely exercise his religion.
v. United States, 832 F.2d 986 (7th Cir. 1987)
Argued that the federal income tax is a contract, and that he didn't owe
any tax because he rescinded the contract.
v. Commissioner, 791 F.2d 68 (7th Cir. 1986)
Argued that wages are not income under the tax code, and that the income
tax is a taking.
v. Stahl, 792 F.2d 1438 (9th Cir. 1986)
Argued that the Sixteenth Amendment was never properly ratified.
Commissioner, 805 F.2d 902 (10th Cir. 1986)
Argued that wages are exchanges of property rather than taxable income.
United States, 774 F.2d 27 (1st Cir. 1985)
Argued that the Fifth Amendment allowed him to withhold all financial information
from his income tax return.
Schiff, 778 F.2d 460 (8th Cir. 1985)
Irwin Schiff offered $100,000 to anyone who could prove that the tax code
requires individuals to pay income tax.
United States, 760 F.2d 1003 (9th Cir. 1985)
Argued that he owed no taxes because he had not obtained any privilege from
a governmental agency.
v. Commissioner, 771 F.2d 471 (10th Cir. 1985)
Argued that the Constitution does not authorize an income tax, that there
is no law imposing an income tax, and that the definition of "income"
v. Commissioner, 751 F.2d 85 (2d Cir. 1984)
Argued that Congress does not possess the constitutional authority to impose
a "direct" tax, that no law makes any individual liable to pay
a tax or excise on "taxable income," and that "income"
has no defined meaning and is unconstitutionally vague and indefinite.
United States, 755 F.2d 517 (7th Cir. 1984)
Argued that they are exempt from federal taxation because they are "natural
individuals" who have not "requested, obtained or exercised any
privilege from an agency of government."
v. Condo, 741 F.2d 238 (9th Cir. 1984)
Argued that Federal Reserve notes cannot be taxed, that the Sixteenth Amendment
only allows taxing income from "sources," not persons, and that
the word "includes" is a term of limitation, not expansion.
v. Heise, 709 F.2d 449 (6th Cir. 1983)
Argued that his failure to file proper returns constituted a valid exercise
of his Fifth Amendment privilege against compulsory self-incrimination.
v. Drefke, 707 F.2d 978 (8th Cir. 1983)
Argued that he was a "nontaxpayer" because he did not enter a
contract for government services, that the district court had no jurisdiction,
and that the tax code violated his Fifth and Thirteenth Amendment rights.
Greenway, 952 F. Supp. 647 (W.D. Mo. 1997)
Argued that a state court lacked jurisdiction over him because the flag
in the courtroom had yellow fringe on it, thus converting it into the "maritime
flag of war." A Favorite!
States v. Hartman, 915 F. Supp. 1227 (M.D. Fla. 1996)
Argued that payment of income taxes is voluntary, and that summonses from
the I.R.S. cannot be enforced without implementing regulations.
v. Rhodes, 921 F. Supp. 261 (M.D. Penn. 1996)
Argued that "income" under the Sixteenth Amendment is limited
to profit proceeding from property, and that he is not a "person"
under the Internal Revenue Code.
v. Greenstreet, 912 F. Supp. 224 (N.D. Tex. 1996)
Filed UCC-1 financing statements against federal employees. Argued that
as a "white Preamble natural sovereign Common Law De Jure Citizen of
the Republic/State of Texas," the district court lacked jurisdiction,
that the case should be moved to "Our One Supreme Court for the Republic
of Texas," and that fringe on an American flag denotes a court of admiralty.
Internal Revenue Service, No. 95-3068 (D. Neb. 1996)
Argued that the district court lacked jurisdiction, that they were non-resident
aliens because Nebraska is not part of the United States, and that they
did not fall within the provisions of the tax code.
v. Social Security Admin., No. 94-10051 (N.D. Fla. 1994)
Argued that he was fraudulently induced into signing a "contract"
with the Social Security Administration, and that he is a natural sovereign
citizen of the United States who is not subject to the Social Security system.
v. Sato, 704 F. Supp. 816 (N.D. Ill. 1989)
Argued that Congress' power to tax does not extend beyond the District of
Columbia and other federal areas, and that the Sixteenth Amendment was never
v. House, 617 F. Supp 237 (W.D. Mich. 1985)
Argued that the Sixteenth Amendment was never legally ratified.
Young v. Internal
Revenue Service, 596 F. Supp. 141 (N.D. Ind. 1984)
Argued that the IRS was not created by "positive law," that the
tax code does not apply to "sovereign citizens," that the tax
code is a bill of attainder, and that the district court lacks jurisdiction.
United States, 596 F. Supp. 240 (N.D. Ind. 1984)
Argued that the I.R.S. is a private corporation and not part of the government
of the United States.
v. Regan, 599 F. Supp. 126 (M.D. La. 1984)
Argued that as a "Sovereign Individual," the "Common Law
of the United States of America, a Republic" protected him from penalties
for filing a frivolous tax return.
v. Glick, 782 F.2d 670 (7th Cir. 1986)
Argued that a land patent from the United States conveyed clear title and
no one may encumber the property with mortgages, thereby preventing foreclosure.
v. Peoples Bank, 776 F.2d 176 (7th Cir. 1985)
Argued that drafting and signing a "federal land patent" grants
an interest superior to that of a bank trying to foreclose.
Individual Head of St. Joseph Mortgage Co., 612 F. Supp. 253 (N.D. Ind.
Argued that court should dismiss foreclosure action on the basis of a "land
patent" which he drafted, executed, and recorded in the County Recorder
of Deeds Office.
Federal Land Bank Assoc. of St. Louis, 505 N.E. 2d 387 (Ill. Ct. App.
Argued that creation of land patents required that the bank return foreclosed
property to possession of plaintiffs.
States ex rel. Verdone v. Circuit Court for Taylor County, 851 F. Supp.
345 (W.D. Wisc. 1993)
Argued that the traffic laws infringed on his right to travel and that enforcement
of the traffic laws constituted a conspiracy.
City of Spokane
v. Port, 716 P.2d 945 (Wash. Ct. App. 1986)
Argued that a law requiring that drivers have licenses unconstitutionally
restricts one's right to travel.
Gibson, 697 P.2d 1216 (Idaho Ct. App. 1985)
Argued that as a "free man" the motor vehicle laws do not apply
to him without his consent.
Turk, 643 P.2d 224 (Mont. 1982)
Argued that Montana's compulsory automobile liability insurance statutes
Have a question for Quatloos?
Protestors, Pure Trusts, and Other Stupid De-Tax Schemes & Scams
Have a stupid theory why you shouldn't have to pay taxes? 861? Non-Filer?
Sovereign Citizen? Believe that the federal courts are actually
admiralty courts or that the only real citizens of the USA live
in Puerto Rico, Guam, and the District of Columbia, then this forum
is for you.
Practice & Policy and Tax Shelters Practical
and Practice issues for Professionals who practice in the area of
taxation. Moral, social and economic issues relating to taxes, including
international issues, the U.S. Internal Revenue Code, state tax
NATURE OF THE FEDERAL INCOME TAX SYSTEM
Tax Scam Artist's Lie: The filing of a tax return is voluntary.
Scam Artist's Lie: Payment of tax is voluntary.
The Tax Scam
Artist's Lie: The IRS must prepare federal tax returns for a
person who fails to file.
MEANING OF INCOME: TAXABLE INCOME AND GROSS INCOME 6
Tax Scam Artist's Lie: Wages, tips, and other compensation received
for personal services are not income.
Tax Scam Artist's Lie: Only foreign-source income is taxable.
Tax Scam Artist's Lie: Federal Reserve Notes are not income.
MEANING OF CERTAIN TERMS USED IN THE INTERNAL REVENUE CODE
Tax Scam Artist's Lie: Taxpayer is not a "citizen"
of the United States, thus not subject to the federal income tax
Tax Scam Artist's Lie: The "United States" consists
only of the District of Columbia, federal territories, and federal
Tax Scam Artist's Lie: Taxpayer is not a "person"
as defined by the Internal Revenue Code, thus is not subject to
the federal income tax laws.
Tax Scam Artist's Lie: The only "employees" subject
to federal income tax are employees of the federal government.
Tax Scam Artist's Lie: Federal income taxes constitute a "taking"
of property without due process of law, violating the Fifth Amendment.
Tax Scam Artist's Lie: Taxpayers do not have to file returns
or provide financial information because of the protection against
self-incrimination found in the Fifth Amendment.
Tax Scam Artist's Lie: Compelled compliance with the federal
income tax laws is a form of servitude in violation of the Thirteenth
Tax Scam Artist's Lie: The Sixteenth Amendment to the United
States Constitution was not properly ratified, thus the federal
income tax laws are unconstitutional.
Tax Scam Artist's Lie: The Sixteenth Amendment does not authorize
a direct non-apportioned federal income tax on United States citizens.
Tax Scam Artist's Lie: The Internal Revenue Service is not an
agency of the United States.
Tax Scam Artist's Lie: Taxpayers are not required to file a
federal income tax return, because the instructions and regulations
associated with the Form 1040 do not display an OMB control number
as required by the Paperwork Reduction Act.
Tax Scam Artist's Lie: African Americans can claim a special
tax credit as reparations for slavery and other oppressive treatment.
Tax Scam Artist's Lie: Taxpayers are entitled to a refund of
the Social Security taxes paid over their lifetime.
PACKAGES or "UNTAXING" TRUSTS.
The Tax Scam Artist's
Lie: An "untaxing" package or trust provides a way
of legally and permanently avoiding the obligation to file federal
income tax returns and pay federal income taxes.
FOR PURSUING FRIVOLOUS TAX ARGUMENTS.
Sues to Stop California Attorney from Promoting Tax Scams
-- Attorney Allegedly Falsely Advises Customers They Do Not Have
to Pay Federal Taxes.
Court Enjoins Irwin Schiff and Associates -- A temporary
restraining order was issued barring Irwin Schiff and two associates
from promoting their tax scams.
News Regarding Tax Scams -- Latest IRS releases, court opinions,
Amendment Scam Resurfaces Hailed as the Missing
Amendment by scam artists selling books and tapes about the
13th Amendment banning Titles of Nobility that was purportedly
ratified and then secretly hidden from the American public, this
perhaps stupidest of all Tax Protestor scams has again resurfaced
to fleece money from the ultra-stupid.
Protestor Otto Skinner Condemns Frivolous Patriot Arguments
-- Even some of the tax protestors are willing to admit that most
of the tax protestor arguments are totally bogus -- usually the
ones that they themselves are not selling.
Source Income Scam -- Douglas P. Rosile, Sr., is chased
by Justice Department for tax scam based on "an absurd reading
of Section 861 of the Internal Revenue Code", which supposedly
allowed people to not report their income unless it was from outside
Protestor Theories De-Bunked -- We blow up the theories
asserted by tax scam artists about why their materials will avoid
Schiff Sued (Again) -- Infamous tax protestor Irwin Schiff
is sued for over $1 million by somebody dumb enough to follow Schiff's
Benson Debunked! -- The bogus arguments put forth by tax
scammer Bill Benson are examined and shown to be totally meritless.
Department's Synopsis of Tax Protestor Crimes -- Discusses
the various theories under which the Justice Department prosecutes
tax protestors, and de-bunks common theories that promoters sell
as a means for people to avoid taxes.
Legal Arguments: -- A Casebook for Dealing with Extremist
Legal Arguments -- Detailed de-bunking of various tax protestor
Bernard J. Sussman of the Anti-Defamation League.