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Judge Orders Group to Stop Promoting Income Tax Evasion
NYTimes ^ | 1/13/03 | DAVID CAY JOHNSTON

Posted on 01/13/2003 6:31:26 PM PST by trick question

The widely promoted claim that Americans are not required to pay income taxes on their wages is false, a federal judge ruled Friday in ordering one of its leading proponents to stop inciting tax evasion.

The judge, Christopher C. Conner, ordered the proponent, Thurston Paul Bell of Hanover, Pa., to post the court's order at his Web site (www.nite.org). Mr. Bell was also ordered to remove all language promoting the claim, known as the 861 position after a section of the tax code, that only those working for foreign-owned companies owe taxes on their wages.

Mr. Bell must turn over to the Justice Department copies of his client's tax returns, notify them that their returns were false and notify them that in addition to owing taxes they may face penalties for filing frivolous returns. Any refunds they obtained were erroneous, Judge Conner said, and the Internal Revenue Service may take them back.

Mr. Bell did not respond to e-mail and a fax seeking comment.

The preliminary injunction is the most serious blow to what members call the tax honesty movement, which has gained thousands of followers in the last two years, largely through full-page advertisements in USA Today. Members call the federal government a criminal organization.

The 861 position is nonsense, ruled Judge Conner of United States District Court for the Middle District of Pennsylvania. At least a dozen other courts have taken the same position, but that has not stopped people from paying at least $1,000 to Mr. Bell and others who claim that they have found a way to legally stop paying taxes.

Judge Conner noted that Mr. Bell conceded that Section 861 specified that wages earned in the United States were taxable.

Mr. Bell said, however, that the regulations implementing the law exempted wages paid by domestic companies from being taxed. Judge Conner said this false claim "rests purely on semantics and takes the regulations under Section 861 out of context."

Mr. Bell told the judge last year that he had a First Amendment right to promote his political views.

Judge Conner held Friday that Mr. Bell was running a business that incited people to violate the law, that his Web site was an advertisement for illegal advice and that he was engaged in commercial, not political, speech.

"Although the First Amendment protects commercial speech generally, it does not protect false commercial speech," Judge Conner wrote in rejecting Mr. Bell's First Amendment argument.

Businessmen have reportedly boasted of not paying taxes based on the 861 position. They said that the Internal Revenue Service knew that some of them had not paid taxes for two decades, but had done nothing, which they took as confirmation of their belief that the tax laws were a hoax. None of those businessmen have been indicted and some of them say the I.R.S. still has not contacted them.

We the People, an organization in Queensbury, N.Y., which has promoted the 861 position, has urged all Americans to stop paying taxes because federal officials will not meet with them to explain what authority the government has to impose taxes. Not paying taxes is the "one non-violent option left" to tyranny, according to the group.


TOPICS: News/Current Events
KEYWORDS: bobschulz; criminals; givemeliberty; schulz; taxevasion; taxhonesty; taxprotest; taxprotester; wethepeople
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To: AppyPappy
Appy - I agree - income taxes should be paid, and the feds have the power to levy taxes. However, why wouldn't the current tax brackets violate the equal protection clause? Why should I have to pay a higher rate than the non-producers? You're educated in these things. Thanks - Ag
41 posted on 01/14/2003 11:16:39 AM PST by Ag88
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To: Ag88

Why should I have to pay a higher rate than the non-producers?

Because congress has the authority to do that under the Constitution.

Why should one man be levied a duty on alcoholic beverages just because he drinks them, and another not have to pay the tax just because he doesn't drink them.

Equal "protection" of the law, does not mean equal outcome with no regard to circumstance.

42 posted on 01/14/2003 11:26:34 AM PST by ancient_geezer
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To: Ag88
Actually, a person earning what you earn would pay the same as you. That's equal protection.
43 posted on 01/14/2003 11:32:20 AM PST by AppyPappy (If you can't beat 'em, beat 'em anyway)
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To: AppyPappy
I bet you did really well in Accounting.

yep.

44 posted on 01/14/2003 12:06:56 PM PST by Capitalist Eric
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To: Capitalist Eric
People like me become federal judges. There is not one federal judge who would accept a tax protestor argument. Anyone can "theorize" what the law might be, in some alternate universe; you can; my barber can; so can the homeless guy on my block. Judges and lawyers determine what the law is. You lose, as does anyone who follows your reckless advice.
45 posted on 01/14/2003 3:25:01 PM PST by maro
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To: AppyPappy
You'd think that no matter what somebody earned, they'd pay the same percentage, and that would be equal protection. I don't believe I'm being equally protected by the tax code. The tax brackets are backasswards. If we taxed the poor in the same proportion as we tax us "middle class", there'd be many fewer poor folks post haste. - Ag
46 posted on 01/14/2003 4:18:13 PM PST by Ag88
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To: maro
People like me become federal judges.... Judges and lawyers determine what the law is.

Yeah... and stare decisis no longer applies, when judges and activist lawyers- like you- decide to follow an activist viewpoint, rather than the law as decided before you were born...

And the absolute ARROGANCE to say lawyers and judges determine the law??? Lawyers are supposed to argue the merits of the law as it applies to their clients, and judges determine whether those arguments have merit. If you truly believe what you stated above, you truly are a parasite on society...

Ever wonder why people look at the legal system with such contempt???? A system which, I might add, is so blatant in that it doesn't give a rats @ss about justice- as demonstrated by lawyers like YOU?

You have demonstrated that you're part of that system, AND part of the problem.

I hope that sits well with you... A profession without integrity or honor... Well, if you don't become a judge, maybe you'll be a politician, since it's all the same to you...

There is no way possible, to sufficiently express my absolute contempt for you.

47 posted on 01/14/2003 4:27:51 PM PST by Capitalist Eric
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To: Capitalist Eric
What "decisis" are you standing on, punk? You have no case law; you have nothing. You know no law. You are a hazard. If you are selling this "nonsense" for cash, you are violating federal and state criminal statutes, and you belong in jail.
48 posted on 01/14/2003 5:06:09 PM PST by maro
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To: maro
You are a hazard.

Coming from a lawyer??? Gee, I don't what to say... except THANKS!!!!!

49 posted on 01/14/2003 6:41:56 PM PST by Capitalist Eric
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To: maro
Oh... and just for the record??? If you knew only half as much as you think you know... You'd be impressive, indeed.

Too bad you're too blinded by (pick any or all)

1. Greed
2. Unbridled arrogance
3. Your values being for sale to the highest bidder
4. Believing in "situational" ethics

Oh yeah, you're just the one to talk about "nonsense" for cash. Why don't you just admit you're a prostitute??? At least for the "ladies of the evening," they don't have such pretentions as you...

Like I said, words fail to describe what a contemptible, sorry piece of work you truly are....
You make the law...

ROFLMAO!!!


50 posted on 01/14/2003 6:49:44 PM PST by Capitalist Eric
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To: ancient_geezer
Thanks ancient_geezer,
I'm pretty scared for my friend. I'm think he's so deep into this he can't extract himself. He is married with kids. His wife is the main breadwinner-a permissive type-and I think about what will happen when all this stuff comes crashing down. Every time I read about this stuff, I'm thankful my wife and I keep perfect records and pay everything owed. Thanks again.
51 posted on 01/14/2003 7:40:13 PM PST by discipler
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To: discipler
My sister almost got sucked into this junk law, I can fully understand how you feel. I've seen to many good folks get scammed into believing in the toothfairy.

Unfortunately there seems to more than enough people out there ready and willing to push these scams and tell everyone they can have their fantasy just by buying a book here, a video there, and filing and saying magic words.

Too bad it doesn't work that way.

52 posted on 01/14/2003 8:05:44 PM PST by ancient_geezer
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To: Capitalist Eric
Yeah, I make the law. I litigate cases in court; I write opinions. My peers are judges, who decide cases and write opinions. The principal lawmakers, of course, are the democratically elected legislatures, but I am certainly part of the process. The legal process is controlled by...lawyers. No surprise there. That fact has nothing to do with left-wing or right-wing politics. As a lawyer, who represents TAXPAYERS, almost always corporate taxpayers, I understand the tax law. You don't. I really don't care what happens to you; but I do care about the naive, unsophisticated people you drag into your scheme. They are the ones who stand up there in U.S. Tax Court, pro se because no lawyer can make such irresponsible arguments in court, and find out that they owe back taxes, they owe interest, they owe penalties, and therefore they lose everything.
53 posted on 01/14/2003 8:31:47 PM PST by maro
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To: maro
And, of course, the guy who sold the poor schmuck the "Pay No Taxes!" stuff is NEVER on hand.
54 posted on 01/14/2003 8:33:59 PM PST by Poohbah (USMC, 1983-1991)
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To: Poohbah
Yeah, he's far, far away. This tax protester stuff reminds me of the Simpsons episode in which Homer joins a fraternal lodge, the Stonecutters I believe. It turns out that all the important people are Stonecutters, and that giving a Brother Stonecutter the secret handshake gives you all kinds of perqs. Homer doesn't have to sit in traffic; there's a special underground highway just for Stonecutters. Et cetera. As you know, the promoters of these schemes are promising that real life is like that, that if you know the secret that they will sell you, there's a way out of paying income taxes, a secret highway that leads to a better life.
55 posted on 01/14/2003 9:11:21 PM PST by maro
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To: maro; Poohbah
The judge in US v. Sloan nails it:

United States v. Sloan, 939 F.2d 499 (7th Cir. 1991)
Argued that there is no law imposing a tax on income, that state citizens are exempt from income tax.

KANNE, Circuit Judge.


56 posted on 01/14/2003 9:34:51 PM PST by ancient_geezer
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To: maro
I do care about the naive, unsophisticated people you drag into your scheme.

HAHAHAHAHAHAHAHA!!!!!!!!!!!!

Let's talk about irresponsible lawyers, for a second, shall we????

HMOs are the logical response to ambulance-chasing lawyers.
Frivolous lawsuits are the norm (McDonalds coffee temperature, attacking tobacco companies and the Americans with Disabilities Act lawsuits, just to name a few)
It's now common knowledge that lawyers are about money not justice or "laws" or anything else.

Stated simply, you're a whore.

For the record, I do pay taxes- because the risks involved with following the law, versus what the courts selectively enforce- is simply too great. Unfortunately, I have to "play the game."

That you espouse lies, is little surprise to me- after all, you are a lawyer. But don't you dare aspire to some sense of nobility, when your "profession" is based on disengenuous tactics and greed... A prostitute is more respectable, since they have no such pretentions.

57 posted on 01/15/2003 10:12:37 AM PST by Capitalist Eric
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Comment #58 Removed by Moderator


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