History America: Freedom to Fascism America: Freedom to Fascism is a 2006 film by Aaron Russo, which alleges among a variety of claims that income tax is illegal The Law that Never Was The Law That Never Was: The Fraud of the 16th Amendment and Personal Income Tax is a 1985 book by William J. Benson and Martin J. "Red" Beckman which claims that the Sixteenth Amendment to the United States Constitution, commonly known as the income tax amendment, was never properly ratified. In 2007, and again in 2009, Benson's Cheek v. United States Cheek v. United States, 498 U.S. 192 , was a case in which the United States Supreme Court held that a tax protester's belief that he was not violating the Federal tax law based on a misunderstanding caused by the complexity of the tax law itself—if a genuine, good faith, actually held belief—would be a valid defense to charges of tax evasion,

Notable tax protesters Irwin Schiff Irwin A. Schiff is a prominent figure in the tax protester movement. Schiff is known for writing and promoting literature that claims the United States income tax is applied incorrectly. He has lost several civil cases against the federal government and has a record of multiple convictions for various federal tax crimes. Schiff is serving a 13- Richard Michael Simkanin Richard Michael Simkanin is a tax protester serving a prison sentence after having been convicted on twenty-nine counts of United States federal tax crimes Robert Clarkson Robert Barnwell Clarkson was an American tax protester in South Carolina. Clarkson graduated in 1969 from Clemson University with a bachelor of arts degree in economics. He served as a platoon leader in the Vietnam War. Clarkson graduated from South Carolina Law School in 1974 · Tom Cryer Tommy K. Cryer, also known as Tom Cryer , is an attorney in Shreveport, Louisiana who was charged with and later acquitted of willful failure to file U.S. Federal income tax returns in a timely fashion Vivien Kellems Vivien Kellems, was a Connecticut industrialist who fought the U.S. federal government for over 25 years over withholding under 26 USC §3402, and other aspects of income tax in the United States. She was also a fervent supporter of voting reform and the Equal Rights Amendment Wayne C. Bentson Bentson operated Western Information Network and the Bentson Group until May 1997. He represented himself as a tax expert and told his clients that they did not need to pay federal income tax Wesley Snipes Wesley Trent Snipes is an American actor, film producer, and martial artist. He has starred in numerous action-adventures, thrillers, and dramatic feature films and is well known for his role as Blade in the Blade trilogy. Snipes formed a production company titled Amen-Ra Films in 1991 and a subsidiary, Black Dot Media, to develop projects for

Australia There are many forms of taxation in Australia. Individuals and companies in Australia may be required to pay taxes or charges to all levels of government: local, state, and federal governments. Taxes are collected to pay for public services and transfer payments • British Virgin Islands Taxation in the British Virgin Islands is simple by comparative standards; photocopies of all of the tax laws of the British Virgin Islands would together amount to about 200 pages of paper. Taxation in the British Virgin Islands is mostly notable for what is not subject to taxation. The British Virgin Islands has: Canada The level of Taxation in Canada is average among Organisation for Economic Co-operation and Development countries. Approximately 70% of the Canadian government's income comes from taxation, the rest from tariffs, fees, and investments.[citation needed] • China Taxes provide the most important revenue source for the Government of the People's Republic of China. As the most important source of fiscal revenue, tax is a key economic player of macro-economic regulation, and greatly affects China's economic and social development. With the changes made since the 1994 tax reform, China has preliminarily set up • Colombia Taxation in Colombia is determined by the Congress of Colombia, the Departments of Colombia Assemblies and the Municipalities of Colombia councils, which determine what kind of taxes can be levied and which rates can be applied France Taxation in France is determined by the yearly budget vote by the French Parliament, which determines which kinds of taxes can be levied and which rates can be applied • Germany Taxes in Germany—being a Federal Republic—are levied by the Federation , the States (Länder) as well as the Municipalities (Gemeinden). Many direct and indirect taxes exist, whereof income tax and VAT are the most relevant. The German word for tax is die Steuer which originates from the Old High German word stiura meaning help. It should not • Hong Kong Categories: Taxation in Hong Kong | Hong Kong legislation | India Taxes in India are levied by the Central Government and the State Governments. Some minor taxes are also levied by the local authorities such the Municipality or the Local Council • Indonesia Indonesian taxation is based on Article 23A of UUD 1945 , where tax is an enforceable contribution exposed on all Indonesian citizens, foreign nationals and residents who have resided for 120 cumulative days within a twelve month period. Indonesia has a stratification of taxation including Income Tax, Local Tax (Pajak Daerah) and Central • Ireland The system of taxation in the Republic of Ireland is broadly similar to the system of taxation in the United Kingdom Netherlands Some of the most important taxes are that of the income tax , the wage withholding tax (Wet op de loonbelasting 1964), the value added tax (Wet op de omzetbelasting 1968) and the corporate tax (Wet op de vennootschapsbelasting 1969) • New Zealand Taxation in New Zealand is collected at a national level by the Inland Revenue Department on behalf of the Government of New Zealand. National taxes are levied on personal and business income, as well as on the supply of goods and services. There is no capital gains tax, although certain "gains" such as profits on the sale of patent Peru The income tax in Peru is collected by the Superintendencia Nacional de Administración Tributaria, best known as SUNAT. This country uses a system of progressive taxation on personal income, and a flat rate tax on business income • Russia The Russian Tax Code is the primary tax law for the Russian Federation. The Code was created, adopted and implemented in three stages. Part One, enacted July 31, 1998, also referred to as the General Part, regulates relationships among taxpayers, tax agents, tax-collecting authorities and legislators: tax audit procedures, resolution of disputes • Singapore Individual income tax in Singapore forms part of two main sources of income tax in Singapore, the other being corporate taxes on companies. Payable on an annual basis, it is currently based on the progressive tax system , with taxes ranging from 0% to 20% since Year of Assessment 2007. The Year of Assessment (YA) is based on the calendar year Switzerland Taxes in Switzerland are levied by the Swiss Confederation, the cantons and the municipalities. Switzerland is sometimes considered a tax haven due to its general low rate of taxation, its political stability as well as the various tax exemptions or reductions available to Swiss companies doing business abroad, or foreign persons resident in • Tanzania In Tanzania the Income Tax Act, 2004 came into effect in July 2004. This act restructured the income tax system in line with modern requirements and repealed the previous Income Tax Act, 1973. Tax is levied on income from employment, income from business and income from investment. Taxable persons include entities and individuals. An entity can be Thailand • United Kingdom Taxation in the United Kingdom may involve payments to a minimum of two different levels of government: The central government and local government. Central government revenues come primarily from income tax, National Insurance contributions, value added tax, corporation tax and fuel duty. Local government revenues come primarily from grants from United States Taxation in the United States is a complex system which may involve payment to many different levels of government and many methods of taxation. United States taxation includes local government, possibly including one or more of municipal, township, district and county governments. It also includes regional entities such as school and utility, and • European Union Value added tax is similar to a sales tax. It is a tax on the estimated market value added to a product or material at each stage of its manufacture or distribution, ultimately passed on to the consumer. Maurice Lauré, Joint Director of the French Tax Authority, the Direction générale des impôts, was first to introduce VAT on April 10, 1954,

Tax rates around the world Comparison of tax rates around the world is difficult and somewhat subjective. Tax laws in most countries are extremely complex, and tax burden falls differently on different groups in each country and sub-national unit. The lists below give an indication by rank of some raw indicators Tax revenue as % of GDP This article lists countries by total tax revenue as a percentage of gross domestic product for the listed countries. Three sources are used, one for each column. The tax percentage for each country listed in the sources has been added to the chart

A tax protester A tax protester is someone who refuses to pay a tax on constitutional or legal grounds. Many claim the tax laws are unconstitutional or otherwise invalid. Some refuse to file a tax return or file returns with no income or tax data supplied. Legal commentator Daniel B. Evans has defined tax protesters as people who "refuse to pay taxes or file, in the United States, is a person who denies that he or she owes a tax To tax is to impose a financial charge or other levy upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law based on the belief that the constitution A constitution is a set of laws that a set of people have made and agreed upon for government—often codified as a written document—that enumerates and limits the powers and functions of a political entity. These rules together make up, i.e. constitute, what the entity is. In the case of countries and autonomous regions of federal countries the, statutes A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law and the regulations issued by government agencies. Statutes are sometimes referred to as, or regulations Regulation is "controlling human or societal behavior by rules or restrictions." Regulation can take many forms: legal restrictions promulgated by a government authority, self-regulation by an industry such as through a trade association, social regulation , co-regulation and market regulation. One can consider regulation as actions of do not empower the government to impose, assess or collect the tax. The tax protester may have no dispute with how the government spends its revenue. This differentiates a tax protester from a tax resister Tax resistance can be a form of conscientious objection . Tax resistance can also be a variety of protest, or a technique of nonviolent resistance (for example, in India’s campaign for independence led by Mahatma Gandhi), who seeks to avoid paying a tax because the tax is being used for purposes with which the resister takes issue. This article discusses the history of tax protesters with respect to the U.S. federal income tax The federal government of the United States imposes a progressive tax on the taxable income of individuals, partnerships, companies, corporations, trusts, decedents' estates, and certain bankruptcy estates. Some state and municipal governments also impose income taxes. The first Federal income tax was imposed during the Civil War, then again in.

Origin of American tax protesters

People have protested taxation at various times in the history of the United States, sometimes violently. The American Revolution The American Revolution was the political upheaval during the last half of the 18th century in which thirteen colonies in North America joined together to break free from the British Empire, combining to become the United States of America. They first rejected the authority of the Parliament of Great Britain to govern them from overseas without originated with protests against the Stamp Act The Stamp Act of 1765 was a tax imposed by the British Parliament on the colonies of British America. The act required that many printed materials in the colonies be produced on stamped paper produced in London and carrying an embossed revenue stamp. These printed materials were legal documents, magazines, newspapers and many other types of paper and Townshend Acts The Townshend Acts were a series of acts passed beginning in 1767 by the Parliament of Great Britain relating to the British colonies in North America. The acts are named for Charles Townshend, the Chancellor of the Exchequer, who proposed the program. Historians vary slightly in which acts they include under the heading "Townshend Acts", by which Britain sought to tax the American colonies. In 1794, settlers in western Pennsylvania Pennsylvania has 51 miles of coastline along Lake Erie and 57 miles (92 km) of shoreline along the Delaware Estuary responded to a federal tax on liquor with the Whiskey Rebellion. The adverse effect of the Tariff of 1828 on southern commerce led South Carolina to reject the tariff and threaten secession. In each of these cases, some opponents of the tax in question contended that it was not merely bad, but exceeded the authority of the body that enacted it.

The assertion of federal authority in the American Civil War put an end to the organized tax protests that had marked the republic’s early years. The war saw the enaction of the first federal income tax, future versions of which would become the federal government’s primary source of revenue. Nonetheless, tax delinquency was widespread during the presidency of Franklin D. Roosevelt, when income taxes increased dramatically to pay for New Deal programs and U.S. involvement in World War II.

The modern tax protester movement

The modern tax protester movement originated later in the 20th century, as some came to assert that the federal tax on individual income is nonexistent, unconstitutional, or inapplicable to various forms of income such as wages.

Early examples

Connecticut industrialist Vivien Kellems was an early advocate of the position that the tax laws were ineffective. In 1948, frustrated that the government had not reduced the historically high tax rates assessed during World War II, Kellems refused to withhold payroll taxes for her employees. She did not dispute the propriety of the tax at that time, but contested the power of the government to require her to collect taxes on its behalf.

Another early protester was Arthur J. Porth, who argued that the Sixteenth Amendment to the U.S. Constitution should itself be declared unconstitutional, under his theory that the income taxes under the Internal Revenue Code of 1939 imposed "involuntary servitude" in violation of the Thirteenth Amendment. That argument was ruled to be without merit in Porth v. Brodrick, United States Collector of Internal Revenue for the State of Kansas.^[1] He continued his tax protester activities and was eventually convicted of willful failure to file returns and other tax crimes; see United States v. Porth.^[2]

In another early case, Lamb v. Commissioner, the taxpayer argued that because his income was not received in the form of gold or silver currency, none of the income was taxable. He also argued that his income was not taxable because Federal Reserve notes were bogus and counterfeit under the Constitution. The United States Tax Court rejected those arguments.^[3]

See also Gordon Kahl.

Ideas associated with the tax protester movement have been forwarded under different names over time. These ideas have been put forth, for example, in the broader Christian Patriot and Posse Comitatus movements, which generally assert that the Constitution has been usurped by the federal government. More recently, tax protesters have styled themselves as the "Tax Honesty Movement".

Current level of civil and criminal tax protester cases

Tax protester cases appear to be a relatively small percentage of total Federal tax decisions. An "unscientific" May 2, 2006 search of one database used by tax lawyers, certified public accountants, and other tax professionals revealed 56 likely decisions in the year 2003 where the term "tax protester" was used and 42 such decisions in 2004. Seventy-two likely tax protester decisions were rendered in 2005, or less than 7% of the approximately 1,121 Federal tax decisions (including Tax Court and all district court, bankruptcy court, appeals courts and U.S. Supreme Court tax cases) rendered during that year. These statistics do not take into account the fact that some reported, rendered decisions involve multiple levels (trial court, appellate court) of the same case. They also do not take into account cases where taxpayers presented tax protester arguments but the court did not mention the term "tax protester" in its decision (e.g., where the court instead used the legal term "frivolous" or another similar term). The statistics also do not take into account the decisions for which the courts rendered a judgment but no written opinion. The statistics include both civil and criminal tax cases.

Prohibition on IRS use of the designation

In 1998, the U.S. Congress passed a prohibition on the use of the term "illegal tax protester" by officers and employees of the Internal Revenue Service. The prohibition stemmed from complaints about the excessive use of the term not only to describe persons who raised frivolous theories, but against any persons who protested the amount of their tax assessment. Specifically, section 3707 of the Internal Revenue Service Restructuring and Reform Act of 1998^[4] states that IRS personnel:

(1) shall not designate taxpayers as illegal tax protesters (or any similar designation); and

(2) in the case of any such designation made on or before the date of the enactment of this Act [i.e., made on or before July 22, 1998]--

(A) shall remove such designation from the individual master file; and

(B) shall disregard any such designation not located in the individual master file."

Following this ban, some agents have resorted to euphemisms like "Constitutionally challenged" to replace the banned designation.^[5] Further, subsection (b) of section 3707 specifically authorized IRS personnel to use the term "nonfiler" to describe certain taxpayers.

This prohibition has had no bearing on the courts, which continue to use the term. For instance, in Hattman v. Commissioner, a per curiam opinion issued in September 2005 (and joined by future Supreme Court Justice Samuel Alito), the United States Court of Appeals for the Third Circuit stated:

It is readily apparent that Hattman's appeal and "petitions" in this Court, as well as his petition for redetermination filed in the Tax Court, are nothing other than the thinly veiled arguments of a tax protester. These types of tax protester arguments have been rejected as patently frivolous, and require no additional analysis here.^[6]

Ironically, the Congressional Committee Report on the legislation that introduced the prohibition on the use of the term by the IRS used the term "tax protester" in a different section to describe frivolous anti-tax arguments that should be given no weight. In a section of the report discussing the burden of proof in tax hearings, the Committee stated that although the IRS carries the burden of overcoming evidence that a tax assessed is not owed, "Implausible factual assertions, frivolous claims, or tax protestor-type arguments are not credible evidence."^[7]

Old arguments and new

Since the advent of the tax protester movement, all the arguments that have been raised in actual court proceedings have ultimately been deemed incorrect by the courts. Many tax protesters have taken these setbacks to mean that the courts, the Congress, and the executive branch are conspiring to continue receiving the revenue which pays their salaries and supports their benefits.

Within the tax protester movement, there has been discord as to which arguments are appropriate to bring, based in part on the belief that different courts will respond differently to certain arguments. Attorney Larry Becraft, who has spent much of his career defending tax protesters, has recently decried "innocents who today believe certain legal arguments popular years ago, but which were litigated by ill prepared, desperate people and lost. To continue going down such dead end roads and to follow these dead arguments will only result in disaster".^[8]

Furthermore, in addition to those who express heartfelt beliefs about the tax laws, some con artists have been known to take advantage of the beliefs of tax protesters by profitably engaging in "tax scams". Such scams have included "the marketing of bogus trusts, 'untax' kits or other devices that would ostensibly allow people to avoid paying income taxes".^[9]

Notable tax protesters

Some people who do not pay income taxes have been able to do so successfully for many years. Others have been arrested for tax evasion or other tax crimes, and have been prosecuted, convicted and imprisoned. The following sections describe some notable proponents of tax protester arguments.

John L. Cheek

John L. Cheek was a pilot employed by American Airlines. Beginning with the 1980 tax year, Cheek stopped filing Federal income tax returns. He was eventually charged with six counts of willfully failing to file Federal income tax returns under 26 U.S.C. § 7203 for 1980, 1981, and 1983 through 1986. He was also charged with tax evasion under 26 U.S.C. § 7201 for years 1980, 1981, and 1983.^[10]

At his criminal trial, Cheek represented himself.^[11] He stated that he sincerely believed that the tax laws were being unconstitutionally enforced, and that his actions were lawful. Cheek specifically testified that he believed he was not required to file tax returns or pay taxes. He also contended that his wages from a private employer did not constitute income under the internal revenue laws. Cheek argued that he therefore had acted without the "willfulness" required for a criminal tax conviction.^[12]

Cheek was convicted, but his conviction was reversed by the United States Supreme Court because of an erroneous jury instruction. The Supreme Court remanded the case for a re-trial with a correct jury instruction.^[13]

In the re-trial, the jury rejected Cheek's claim that he believed that wages were not taxable. He was again convicted. The second conviction was upheld by the United States Court of Appeals for the Seventh Circuit, and the United States Supreme Court let that decision stand, denying Cheek's petition for a writ of certiorari.^[14] John L. Cheek was sentenced to a year and a day in prison, and was released from prison in December 1992.^[15]

Irwin Schiff

Irwin Schiff has been convicted on three separate occasions in connection with Federal tax crimes: (1) for tax years 1974 and 1975; (2) for tax years 1980 through 1982 and, (3) most recently, for tax years 1997 through 2002, and has spent several years in Federal prisons. Among the arguments raised by Irwin Schiff in various court cases are the argument that no tax assessment can be made unless a tax return has been voluntarily filed; the argument that the Internal Revenue Service, in enforcing the income tax, seeks to impose a tax not authorized by the taxing clauses of the United States Constitution; and the argument (still displayed, as of early 2007, on Schiff's internet web site) that "[f]or tax purposes, 'income' only means corporate 'profit.' Therefore, no individual receives anything that is reportable as 'income.'" All the arguments were rejected by the courts.

Schiff's latest convictions came in late 2005, when he was found guilty of multiple counts of filing false tax returns, aiding and assisting in the preparation of false tax returns filed by other taxpayers, conspiring to defraud the United States, and income tax evasion.^[16] Schiff was sentenced to 13 years and 7 months in prison (including a year for contempt of court), and was ordered to pay over $4.2 million in restitution. He is scheduled for release in October 2016.^[17]

Bonita Lynne Meredith

Bonita Lynne Meredith was sentenced in June 2005 to ten years and one month in prison^[18] for conspiracy, four counts of mail fraud, two counts of using a false social security number, making a false statement in a passport application, and five counts of failing to file a tax return. In its press release following the sentencing of Ms. Meredith, the Department of Justice stated: "The evidence presented during a 13-week trial showed that beginning in 1991 and continuing until April 2002, Meredith conducted seminars at which she sold books and bogus 'pure trusts' to people with the purpose of leading them to believe they could legally shield income and assets from taxation. Meredith and her co-defendants encouraged and assisted taxpayers by forming phony 'pure trusts,' opening bank accounts with phony Taxpayer Identification Numbers, filing fraudulent income tax returns and encouraging taxpayers to stop filing income tax returns." Four other persons convicted of conspiracy in connection with the activities of Ms. Meredith were also sentenced to prison.^[19]

Ms. Meredith is imprisoned at the Victorville Federal Correctional Center (Victorville Medium II) near Adelanto, California, and is scheduled for release in February of the year 2013.^[20][21]

Wayne C. Bentson

In May 2005, the IRS announced that Wayne C. Bentson was sentenced to four years in prison and three years of supervised release, and was ordered to pay the IRS over $1.1 million in restitution. In December 2004, Bentson was convicted on charges of conspiracy and willful failure to file his income tax returns. According to the U.S. Justice Department, Bentson told clients that he was a tax expert and falsely advised clients that the tax laws applied only to individuals living in the Virgin Islands, Guam, and Puerto Rico. According to the Justice Department, Bentson also falsely advised clients that they were not taxpayers, that they had not earned income, and that they were not required to pay federal income tax. Some witnesses reportedly testified during Bentson's trial that they also had been prosecuted after following Bentson’s advice.^[22] Bentson was released from prison in May 2008.^[23]

Larken Rose

Larken Rose, an adherent of the 861 argument, was sentenced to 15 months in prison for willful failure to file income tax returns in five years in which the government alleged he earned approximately $500,000 in income.^[24] He was released from prison in December 2006.^[25][26]

Charles Thomas Clayton

Charles Thomas (Tom) Clayton, M.D., regularly filed Federal income tax returns until he became involved with a "tax protest organization."^[27] For the year 1992, he failed to file a return.^[28] In October of 1996 he pleaded guilty and was sentenced to one year of probation for failure to file the 1992 return.^[29]

Clayton filed tax returns for 1997 and 1998.^[30] On August 29, 2006, he was found guilty by a jury in Federal court in Austin, Texas, of two counts of willfully making false statements on some returns that he had filed, and six counts of willfully failing to file tax returns. According to The Courier of Montgomery County, "Clayton's defense at the trial centered on the '861 argument' -- a defense used numerous times in previous years, but never successfully [ . . . . ]"^[31] According to an April 7, 2006 Justice Department news release shortly after he was indicted, Clayton failed to file income tax returns for years 1999 through 2004 while receiving over $1.5 million in gross income. The government also charged that for years 1997 and 1998 Clayton filed false amended returns, claiming refunds of over $160,000.^[32] The conviction was upheld on appeal.^[33]

Criminal investigators of the Internal Revenue Service had gathered information on Clayton during the IRS investigation of Larken Rose (see above). According to the prosecutor's office, Clayton "disregarded multiple written notices from the Internal Revenue Service informing him that his 861 argument was without merit," and Clayton "had also been told the same thing by two Certified Public Accountants."^[34]

On December 15, 2006, Clayton was sentenced to five years in prison and a fine of $50,000, plus a requirement that he pay over $7,400 in prosecution costs. Clayton is incarcerated at the Federal Correctional Institution at Beaumont, Texas, and is scheduled for release in June of the year 2011.^[35]

Under the sentence, Clayton will be subject to supervision for one year following his prison term.^[36][37]

Wesley Snipes

On February 1, 2008, actor Wesley Snipes was found guilty on three misdemeanor counts of failing to file Federal income tax returns. He was acquitted on one felony count of conspiracy to defraud the government and one felony count of filing a false claim with the government.^[38][39] The allegations against Snipes had included charges that he filed a false amended return including a false tax refund claim of over US$4 million for the year 1996 and a false amended return including a false tax refund claim of over US$7.3 million for the year 1997, using the "861 argument." The indictment said Snipes used accountants who already had a history of filing false returns to obtain refund payments for their clients.^[40] On April 24, 2008, Snipes was sentenced to three years in prison.^{[41][42][43][44]}

William J. Benson

William J. Benson, the co-author of the book The Law that Never Was (in which Benson had argued that the Sixteenth Amendment was not properly ratified), was convicted of tax evasion and willful failure to file tax returns in connection with over $100,000 of unreported income, and his conviction was upheld on appeal. He was sentenced to four years in prison and five years of probation. See United States v. Benson.^[45] Benson's "Sixteenth Amendment was not properly ratified" argument was rejected. On December 17, 2007, the United States District Court for the Northern District of Illinois ruled that Benson's "Reliance Defense Package" (including Benson's Sixteenth Amendment non-ratification argument), constituted a "fraud perpetrated by Benson" that had "caused needless confusion and a waste of the customers' and the IRS' time and resources."^[46][47]

Robert B. Clarkson

Robert B. Clarkson was indicted in 1994 for conspiracy to impede, impair, obstruct and defeat the functions of the Internal Revenue Service under 18 U.S.C. § 371. Clarkson gave seminars in which he asserted that it was legal to claim false exemptions, to hide income, and to refuse to file income tax returns or pay income tax. He and two associates were convicted, and the convictions were upheld on appeal.^[48] He was sentenced to 57 months in prison,^[49] and was released in 1999.^[50][51] Clarkson died on March 1, 2010.

Richard M. Simkanin

Richard Michael Simkanin is a tax protester who became involved with the We the People Foundation and espoused the "income taxes are voluntary" argument. He is currently serving a seven year sentence for convictions on ten counts of willfully failing to collect and pay over employment taxes under 26 U.S.C. § 7202, fifteen counts of knowingly making and presenting false, fictitious or fraudulent claims for refund of employment taxes under 18 U.S.C. § 287 and 18 U.S.C. § 2, and four counts of willfully failing to timely file federal income tax returns under 26 U.S.C. § 7203.^[52]

Kent Hovind

In November 2006, Kent Hovind was convicted of twelve counts of willful failure to collect, account for, and pay over Federal income taxes and FICA taxes under 26 U.S.C. § 7202, forty-five counts of knowingly structuring transactions in Federally-insured financial institutions to evade the reporting requirements of 31 U.S.C. § 5313(a), in violation of 31 U.S.C. § 5324, 18 U.S.C. § 2 and 31 C.F.R. sec. 103.11, and one count of corruptly endeavoring to obstruct and impede the administration of the internal revenue laws under 26 U.S.C. § 7212.^[53] Twelve of the charges were for failing to pay employee-related taxes, totaling $473,818, and 45 of the charges were for evading reporting requirements by making multiple cash withdrawals just under the $10,000 reporting requirement (smurfing).

Hovind had argued that he was not liable for taxes that and his ministry did not have to pay taxes because his workers were "missionaries" not "employees".^[54] In previous dealings with the IRS, Hovind had asserted tax protester arguments including the “income taxes are voluntary” argument.^[55]

The government charged that Hovind falsely listed the Internal Revenue Service as his only creditor in a bankruptcy case, and that Hovind filed a false and frivolous lawsuit against the IRS in which he demanded damages for criminal trespass, made threats of harm to those investigating him and to those who might consider cooperating with the investigation, filed a false complaint against IRS agents investigating him, filed a false criminal complaint against IRS special agents (criminal investigators), and destroyed records.^[56]

Former and current workers, IRS agents, a bank employee, and a lawyer of a non-profit Christian organization testified in the trial. Workers testified that they had to punch time cards, had vacation and sick days; while others testified Hovind claimed he had "beat" the tax system.^[57]

On January 19, 2007, Hovind was sentenced to ten years in prison and three years of probation, and was ordered to pay the federal government restitution of over $600,000.^[58]

Edward Lewis Brown and Elaine A. Brown

Tax protesters Edward Lewis Brown and his wife Elaine A. Brown "believe the IRS and the federal income tax are part of a deliberate plot perpetrated by Freemasons to control the American people and eventually the world."^[59] On January 18, 2007, Edward Lewis Brown, an ex-convict who previously served prison time for assault and armed robbery,^[60] was found guilty by a jury in a Federal District Court in Concord, New Hampshire of one count of conspiracy to defraud the United States under 18 U.S.C. § 371, one count of conspiracy to structure financial transactions to evade the Treasury reporting requirements in violation of 18 U.S.C. § 371, 31 U.S.C. § 5325 and 31 U.S.C. § 5324(a)(3), and one count of structuring financial transactions to evade the Treasury reporting requirements and aiding and abetting under 31 U.S.C. § 5324(a)(3) and 18 U.S.C. § 2. On that day the same jury found Elaine A. Brown guilty one count of conspiracy to defraud the United States under 18 U.S.C. § 371, five counts of tax evasion and aiding and abetting under 26 U.S.C. § 7201 and 18 U.S.C. § 2, eight counts of willful failure to collect employment taxes under 26 U.S.C. § 7202 and aiding and abetting under 18 U.S.C. § 2, one count of conspiracy to structure financial transactions to evade the Treasury reporting requirements in violation of 18 U.S.C. § 371, 31 U.S.C. § 5325 and 31 U.S.C. § 5324(a)(3), and two counts of structuring financial transactions to evade the Treasury reporting requirements and aiding and abetting under 31 U.S.C. § 5324(a)(3) and 18 U.S.C. § 2.^[61]

The Browns stated that they had not been presented with any statute or law that required them to pay income taxes^[62] (see Tax protester statutory arguments). The tax evasion convictions of Mrs. Brown involved the failure to report income of $1,310,706 over a period of five years.^[63]. On April 24, 2007, Ed and Elaine Brown were sentenced to five years and three months in prison each.^[64] After a long standoff at their New Hampshire residence, the Browns were arrested by Federal law enforcement authorities on October 4, 2007, and began serving their prison sentences.^[65][66]

Tom Cryer

Tom Cryer is an attorney in Shreveport, Louisiana. He was charged with two counts of willful failure to file tax returns (other tax charges having been dropped during the trial). The trial court rejected Cryer's arguments that the indictment had failed to allege "affirmative acts."^[67] that the Secretary of the Treasury had failed to comply with the Administrative Procedure Act by not publishing certain information in the Federal Register,^[67] and that the case should be dismissed on the ground that Cryer had not created a trust for the purpose of evading taxes.^[67] The court rejected Cryer's fourth motion to dismiss, in which Cryer made the tax protester argument that his income, which was derived through the practice of law in Louisiana, was not "taxable income" as defined by the Internal Revenue Code, ruling the contention to be "without merit."^[67]

On July 11, 2007, the jury found Cryer not guilty of willful failure to file tax returns.^[68] Cryer did not make any of his arguments about the legality of the income tax to the jury itself. According to the New Hampshire Union Leader:

Cryer convinced jurors that he genuinely believed he was not liable for the $73,000 in taxes the government says he owes for tax years 2000 and 2001. Absent proof of criminal intent, the jury acquitted him.^[69]

In December 2007, Cryer instituted a civil suit against the United States government, alleging that criminal investigators with the Internal Revenue Service had violated various provisions of law by disclosing confidential information and injuring Cryer's reputation during their criminal investigation of Cryer.^[70] In May 2008, the court rejected Cryer's arguments, and his case was dismissed.^[71][72]

In 2009, Cryer's federal tax problems continued. The Internal Revenue Service asserts that Cryer owes over $1.7 million, consisting of $848,806.00 in Federal income tax plus $615,384.37 in section 6651(f) penalties for fraudulent failure to file tax returns, $212,201.50 in section 6651(a)(2) penalties for failure to timely pay the taxes, and $43,044.84 in section 6654 penalties for failure to timely pay estimated taxes. Cryer is contesting the determinations in the United States Tax Court.^[73]

Sherry Peel Jackson

Sherry Peel Jackson is a former Internal Revenue Service Agent and a former Certified Public Accountant^[74]. On February 14th, 2008 she was sentenced to four years in federal prison for failure to file her tax returns^[75].

Andrew Joseph Stack III

Andrew Joseph Stack III was a computer programmer who on February 18, 2010 set fire to his own house, drove to a local airport, then flew a Piper Dakota into a local IRS field office in Austin Texas. Stack and an IRS employee were killed and 13 people were injured.^[76]

Notes

1. ^ 214 F.2d 925, 54-2 U.S. Tax Cas. (CCH) paragr. 9552 (10th Cir. 1954).
2. ^ 426 F.2d 519, 70-1 U.S. Tax Cas. (CCH) paragr. 9329 (10th Cir.), cert. denied, 400 U.S. 824 (1970). Generally, see also Porth v. Templar, 453 F.2d 330 (10th Cir. 1971).
3. ^ Lamb v. Commissioner, 32 T.C.M. (CCH) 305, T.C. Memo. 1973-71 (1973).
4. ^ Pub. L. No. 105-206, 112 Stat. 685 (July 22, 1998).
5. ^ The Picket Line, 19 September 2004]
6. ^ Hattman v. Commissioner, No. 05-1376 (3d Cir. 2005) (per curiam).
7. ^ [1].
8. ^ [2].
9. ^ [3].
10. ^ Cheek v. United States, 498 U.S. 192 at 194, 111 S. Ct. 604, 91-1 U.S. Tax Cas. (CCH) paragr. 50,012 (1991) (hereinafter Cheek).
11. ^ Cheek, 498 U.S. at 195.
12. ^ Cheek, 498 U.S. at 195-96.
13. ^ Cheek v. United States, 498 U.S. 192 (1991).
14. ^ United States v. Cheek, 3 F.3d 1057, 93-2 U.S. Tax Cas. (CCH) paragr. 50,473 (7th Cir. 1993), cert. denied, 510 U.S. 1112, 114 S. Ct. 1055 (1994).
15. ^ John L. Cheek, prisoner number 96657-024, Federal Bureau of Prisons, United States Department of Justice, at[4].
16. ^ #548: 10-24-05 PROFESSIONAL TAX RESISTER IRWIN SCHIFF AND TWO ASSOCIATES CONVICTED IN LAS VEGAS TAX SCAM
17. ^ See also Daniel B. Evans et al., "Irwin Schiff," from Tax Protester Dossiers: Gurus and Other Big Fish, at [5].
18. ^ David Rosenzweig, "Income Tax Protester Gets 10-Year Prison Term," June 7, 2005, Los Angeles Times, at [6].
19. ^ [7].
20. ^ [8].
21. ^ See also Daniel B. Evans et al., "Lynne Meredith," from Tax Protester Dossiers: Gurus and Other Big Fish, at [9].
22. ^ [10].
23. ^ Federal Bureau of Prisons
24. ^ See U.S. Dep't of Jusice news release at [11]. See also rejection of Rose's request for release pending appeal, at United States v. Rose, 96 A.F.T.R. 2d 2005-7276 (E.D. Pa. 2005).
25. ^ See Federal Bureau of Prisons web site, at [12].
26. ^ See also Daniel B. Evans et al., "Larken Rose," from Tax Protester Dossiers: Gurus and Other Big Fish, at [13].
27. ^ United States v. Clayton, 506 F.3d 405, 2007-2 U.S. Tax Cas. (CCH) paragr. 50,775 (5th Cir. 2007) (per curiam), cert. denied, case no. 07-904 (April 14, 2008).
28. ^ Id.
29. ^ Id.
30. ^ Id.
31. ^ [14]/
32. ^ [15].
33. ^ United States v. Clayton, 506 F.3d 405, 2007-2 U.S. Tax Cas. (CCH) paragr. 50,775 (5th Cir. 2007) (per curiam), cert. denied, case no. 07-904 (April 14, 2008).
34. ^ News release, Dec. 15, 2006, Office of Johnny Sutton, United States Attorney for the Western District of Texas, U.S. Department of Justice, San Antonio, Texas.[16]
35. ^ [17].
36. ^ Id.
37. ^ See also Daniel B. Evans et al., "Charles Thomas Clayton," from Tax Protester Dossiers: Gurus and Other Big Fish, at [18].
38. ^ "Wesley Snipes acquitted of federal tax fraud," MSNBC, Feb. 1, 2008, at [19].
39. ^ Snipes acquitted of tax-fraud, conspiracy, CNN, February 1, 2006.
40. ^ See Findlaw.
41. ^ "Snipes Sentenced To 36 Months". Orlando: WESH. 2008-04-24. http://www.wesh.com/news/15979487/detail.html. Retrieved 2008-04-24.
42. ^ See ABC Action News, 24 April 2008, at [20].
43. ^ See the Orlando Sentinel, 24 April 2008, at [21].
44. ^ See also Daniel B. Evans et al., "Wesley Snipes," from Tax Protester Dossiers: Gurus and Other Big Fish, at [22].
45. ^ 67 F.3d 641, 95-2 U.S. Tax Cas. (CCH) paragr. 50,540 (7th Cir. 1995).
46. ^ Memorandum Opinion, p. 14, Dec. 17, 2007, docket entry 106, United States v. Benson, case no. 1:04-cv-07403, United States District Court for the Northern District of Illinois, Eastern Division.
47. ^ See also Daniel B. Evans et al., "William Benson," from Tax Protester Dossiers: Gurus and Other Big Fish, at [23].
48. ^ See Fleschner v. United States, 98 F.3d 155, 96-2 U.S. Tax Cas. (CCH) paragr. 50,536 (4th Cir. 1996), cert. denied, 117 S. Ct. 2484 (1997).
49. ^ United States v. Clarkson, No. 5:1994cr00010, Entry 137 (W.D.N.C. 1994),
50. ^ Federal Bureau of Prisons
51. ^ See also Daniel B. Evans et al., "Robert Clarkson," from Tax Protester Dossiers: Gurus and Other Big Fish, at [24].
52. ^ United States v. Simkanin, 420 F.3d 397, 2005-2 U.S. Tax Cas. (CCH) paragr. 50,507 (5th Cir. 2005), cert. denied, 126 S. Ct. 1911 (2006).
53. ^ Lozare, Nicole (November 2, 2006). "'Dr. Dino,' wife guilty". Pensacola News Journal. ; compare Indictment, United States of America v. Kent E. Hovind and Jo D. Hovind, U.S. District Court for the Northern District of Florida, Pensacola Division, case no. 3:06CR83/MCR (dated July 11, 2006; filed at 12:55 pm, July 11, 2006).
54. ^ "Tax Evasion Charges Baseless Says Ministry Leader". WDC Media News. 7 July 2006. http://www.wdcmedia.com/newsArticle.php?ID=1514. Retrieved 2006-10-18.
55. ^ Hovind v. Commissioner, T.C. Memo 2006-143, CCH Dec. 56,562(M) (2006).
56. ^ Indictment, page 8 (July 11, 2006).
57. ^ Stewart, Michael (October 21, 2006). "Lawyer: Hovind detailed actions: Evangelist said he 'beat the system'". Pensacola News Journal.
58. ^ See also Daniel B. Evans et al., "Kent E. Hovind," from Tax Protester Dossiers: Gurus and Other Big Fish, at [25].
59. ^ Kristen Senz, "Brown say they will either walk free, or die," New Hampshire Union Leader, June 19, 2007 at [26].
60. ^ Kathryn Marchocki, "Dukakis granted pardon to Brown," New Hampshire Union Leader, June 22, 2007 [27]
61. ^ See Jury Verdict, docket entry 133, Jan. 18, 2007, United States of America v. Elaine A. Brown and Edward Lewis Brown, Defendants; case no. 1:06-cr-00071-SM-ALL, United States District Court for the District of New Hampshire (Concord); and Indictment, docket entry 1, April 4, 2006, United States of America v. Elaine A. Brown and Edward Lewis Brown, Defendants; case no. 1:06-cr-00071-SM-ALL, United States District Court for the District of New Hampshire (Concord).
62. ^ "Couple Charged With Evading Taxes For Years". Associated Press. January 10, 2007. http://www.wmur.com/news/10714938/detail.html.
63. ^ See Indictment, docket entry 1, April 4, 2006, United States of America v. Elaine A. Brown and Edward Lewis Brown, Defendants; case no. 1:06-cr-00071-SM-ALL, United States District Court for the District of New Hampshire (Concord).
64. ^ "Plainfield Tax Evaders Sentenced To 63 Months In Prison". Associated Press. April 24, 2007. http://www.wmur.com/news/13006420/detail.html.
65. ^ Associated Press, "U.S. Marshal: Convicted Tax Evaders Arrested," Oct. 4, 2007, WCAX-TV Vermont, at [28]
66. ^ Associated Press, "Convicted Tax Evaders Arrested in New Hampshire: Couple who holed up at compound for months taken into custody," Oct. 4, 2007, MSNBC, at [29].
67. ^ ^{a b c d} Memorandum Order, March 19, 2007, docket entry 35, United States v. Cryer, case no. 5:06-cr-50164-SMH-MLH-ALL, U.S. District Court for the Western District of Louisiana, Shreveport Division.
68. ^ Loresha Wilson, "Local attorney acquitted on Federal income tax charges," July 13, 2007, Shreveport Times, at [30]
69. ^ Senz, Kristen. Louisiana lawyer beats tax charges; worries for Browns. Union Leader Thursday, Aug. 9, 2007.
70. ^ Complaint, docket entry 1, Dec. 26, 2007, Cryer v. United States, case no. 5:07-cv-02206-DEW-MLH, U.S. District Court for the Western District of Louisiana (Shreveport).
71. ^ Memorandum Ruling, docket entry 8, May 9, 2008, Cryer v. United States, case no. 5:07-cv-02206-DEW-MLH, U.S. District Court for the Western District of Louisiana (Shreveport).
72. ^ See also Daniel B. Evans et al., "Tommy K. Cryer," from Tax Protester Dossiers: Gurus and Other Big Fish, at [31].
73. ^ See Statutory Notice of Deficiency dated January 5, 2009, as attachment to Petition, filed April 2, 2009, Tommy K. Cryer v. Commissioner of Internal Revenue, case no. 8118-09, United States Tax Court, Washington, D.C.
74. ^ Jackson's website[32]
75. ^ Department of Justice Press Release[33]
76. ^ Associated Press (February 19, 2010). "Wife of Pilot in Texas Plane Attack Offers 'Sincerest Sympathy' to Victims". FoxNews.com. http://www.foxnews.com/story/0,2933,586781,00.html. Retrieved February 19, 2010.

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