Posted on 03/30/2004 10:51:24 AM PST by ancient_geezer
ASSOCIATED PRESS
LAS VEGAS (AP) - A federal judge has dismissed a $7 million civil lawsuit against Irwin Schiff, an income tax protester indicted by the IRS for failing to pay taxes.
U.S. District Judge James C. Mahan ruled Monday that Steven Swan, a tax preparer who promoted Schiff's theories, had no claim against Schiff for fraud and misrepresentation.
Swan, of Manchester, N.H., sued Schiff in 2002, and wrote letters to President Bush and the IRS saying he believed the government let Schiff stay in business so tax authorities could go after more average Americans.
Swan was convicted in February in New Hampshire of 18 tax law violations, and faces up to 54 years and a $4.5 million fine when he is sentenced May 19.
Schiff, who owns Freedom Books in Las Vegas, said Swan was responsible for his own problems.
"He claimed he got into trouble because of following my procedures," Schiff said. "But he owed the government money before he read my books."
Schiff contends the payment of federal income taxes is voluntary and the collection of taxes is illegal.
Federal prosecutors argue Schiff is advising people how to break laws and exposing them to prosecution if they follow his advise.
Last week Schiff and two associates, Cynthia Neun and Lawrence Cohen, were charged with aiding and assisting in the preparation and filing of thousands of fraudulent tax returns. Schiff will be arraigned April 14 in federal court in Las Vegas.
He said Tuesday he plans to file four motions in federal court to prevent the government from prosecuting people for not paying income tax.
For the record, I think Schiff is a snake oil salesman of the first degree. But I still don't get the idea behind prosecuting him when other people break the law.
If I show someone how to kill someone (assume I'm a martial arts expert), can I be prosecuted if they do so? If I instruct someone in firearms use? If I share an idea about how to rob a bank?
Ultimately, I just don't see how some hack who professes tax mythology can be held on the hook for stupid people who believe him.
I just don't see how some hack who professes tax mythology can be held on the hook for stupid people who believe him.
They can hold him responsible when he helps them with filing fraudulent returns, briefs in their court cases, and through numerous other routes that he has involved himself in.
He does not restrict himself to just writing books.
When you are a material participant in fraud, or any other crime, you can be held as an accessory to that crime as well.
Federal jury in Las Vegas indicts anti-tax author Irwin Schiff
KRNV, NV - Mar 25, 2004
Schiff, Cynthia Neun and Lawrence Cohen also are charged with aiding in the preparation and filing of fraudulent tax returns, plus other charges. ...
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