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Thursday, July 29, 2004

Is there a tax protestor crazier than Austin Gary Cooper? Well, yeah, but he's still pretty crazy.  Here is his latest exploit.

DENVER -- A judge imposed $1,000-a-day fines and threatened to jail a Fort Collins couple Wednesday unless they stop offering to sell material purporting to explain how to legally evade federal income taxes. Austin Gary Cooper and Martha E. Cooper ignored a November order to stop offering the material and failed to attend a hearing on Friday, U.S. District Judge Lewis Babcock said. Babcock said the fines would increase to $5,000 a day after 11 days, and if they reach $50,000, the couple could be jailed. Martha Cooper said Wednesday she and her husband have not complied with the orders because they do not recognize the judge's authority. Babcock had ordered the couple to turn over names of customers, to remove materials "designed to incite others" to violate tax laws from their Web sites. The couple's company, Taking Back America, urged people to stop paying federal income taxes and to renounce their "United States citizenship" for "American citizenship." The Justice Department has estimated the couple sold the "expatriation/repatriation" system to as many as 2,000 people nationwide for fees starting at $1,595. The Justice Department accused the couple of helping investors file false forms with their employees to halt the automatic withdrawal of payroll taxes. Customers allegedly received a package of documents to be filed with numerous federal agencies that claimed to allow people to legally avoid paying federal income taxes and seek a refund of taxes already paid. Customers also could pay $2,400 for a course on the organization's philosophy. According to courts papers filed by the Justice Department, the Coopers and TBA used a network of distributors to market their scheme and promoted it on a Web site, at seminars and in periodic telephone conference calls. Austin Cooper was criminally convicted in 1990 of willfully attempting to evade or defeat the payment of federal income tax by failing to file income tax returns, failing to pay income tax, and filing false tax-withholding certificates.
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Get the TRUTH about Paytriots and Tax Protestor Scams at http://quatloos.com

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Wednesday, July 28, 2004

As we go into the dog days of summer, it looks like the Service is starting to ramp up its activities against promoters.

FOR IMMEDIATE RELEASE TUESDAY, JULY 27, 2004 WWW.USDOJ.GOV TAX (202) 514-2007 TDD (202) 514-1888 JUSTICE DEPARTMENT SUES TO HALT PREPARATION OF FRAUDULENT TAX RETURNS BY EAST CLEVELAND TAX-RETURN PREPARER Allegedly Frivolous Returns Omit All Wage Income Earned By Preparer=S Customers WASHINGTON, D.C. - The Department of Justice filed a lawsuit in federal court in Cleveland today to stop author and tax return preparer Michael A. Allamby, of East Cleveland, from preparing federal tax returns for customers. The civil injunction suit also seeks to prevent Allamby from promoting an alleged fraudulent tax scheme under which wages are omitted from taxpayers’ tax returns, and to turn over his customer list to the Justice Department. According to the complaint, filed in the U.S. District Court for the Northern District of Ohio, Allamby prepares federal income tax returns for Cleveland-area residents that report zero total income and request refunds of all federal income taxes withheld. The suit alleges that Allamby reports zero total income on his customers returns, despite filing the returns with attached W-2 Forms indicating that the customers have received thousands of dollars in wages or salaries. The complaint states that, since January 2000, the IRS has processed hundreds of returns Allamby prepared. "Preparers of frivolous tax returns and their customers face civil and possibly criminal penalties for their actions," said Eileen J. O'Connor, Assistant Attorney General for the Justice Department's Tax Division. According to the complaint, Allamby also conducts "training courses" across the country at which he promotes his views and solicits customers for his return-preparation business. Court papers allege that he has conducted ten courses since 2000, including courses in Detroit and New York City within the past year. The complaint alleges that Allamby has also written a book, To the Best of My Knowledge and Belief, in which he encourages readers to file tax returns that omit wages from income. In addition to seeking to enjoin Allamby from preparing future tax returns, the government seeks to halt the seminars and book sales through an injunction against Allamby that bars him from advertising, marketing, or promoting any false, misleading, or deceptive position, including the position that wages are not taxable income. More information about the Justice Department's ongoing efforts to halt the promotion of tax scams can be found at http://www.usdoj.gov/tax/taxpress2004.htm. Information about the Tax Division is available at http://www.usdoj.gov/tax/index.html .
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Get the TRUTH about Paytriots and Tax Protestor Scams at http://quatloos.com

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