100 billion dollars requested as tax refund!

[Gregory Matthews]

Yesterday, a Denver jury began deliberating in a case where a group of three (Defendants requested more than 100 billion dollars in ax refunds.

 

Their attorney defended them on the basis that:

1) They did not actually receive the money and therefore there was no crime.

2) The 100 billion dollars was not requested for themselves, but for the people of the United States personally.

 

NOTE:  There were additional personal claims, one of which was some 22 million dollars for one of the defendants.  In addition, there are several additional billion dollar claims of which I am unable to determine the nature of those claims.

 

It should also be noted that the defendants generally did not attend much of the trial as it is their position that the United States cannot legally prosecute them.

 

This trial has not been a slam-dunk.  The Federal prosecutors had to bring some 30 people from various parts of the country to testify in regard to testimony on one part of the case.

 

Prior to going to the jury Thursday, the defendants filed civil lawsuits against the judge and the prosecutor and on that basis asked for both to recuse themselves.

 

 

If convicted the defendants could be sent to jail for decades.

 

[Tom Wetmore]

There is a a whole genre of this sort of lawsuit where litigants make absurd and frivolous claims that do nothing more than waste the time and resources of the legal system and the government.  Despite claims by some in the tax avoidance camp, such claims are never successful in the end.  As you have suggested, people serve time for being tax cheats and for promoting tax avoidance schemes and leading others down this path.  Lawyers and other tax professionals who represent them and try to put forward such arguments can face sanctions themselves.

 

 

 

IRS Debunks Frivolous Tax Arguments

IR-2014-51, April 11, 2014
WASHINGTON — The Internal Revenue Service today released the 2014 version of “The Truth about Frivolous Tax Arguments.” The document describes and responds to some of the common frivolous tax arguments made by those who oppose compliance with federal tax laws. The cases cited demonstrate how frivolous arguments are treated by the IRS and the courts. The 2014 version includes numerous recently decided cases that demonstrate that the courts continue to regard such arguments as illegitimate.
Examples of frivolous arguments include contentions that taxpayers can refuse to pay income taxes on religious or moral grounds by invoking the First Amendment; that the only “employees” subject to federal income tax are employees of the federal government; and that only foreign-source income is taxable.
Frivolous arguments appeared on the IRS annual “Dirty Dozen” list of tax scams that was released on February 19.
Promoters of frivolous schemes encourage taxpayers to make unreasonable and outlandish claims to avoid paying the taxes they owe. While taxpayers have the right to contest their tax liabilities, no one has the right to disobey the law or disregard their responsibility to pay taxes. The penalty for filing a frivolous tax return is $5,000. The penalty is applied to anyone who submits a tax return or other specified submission, if any portion of the submission is based on a position the IRS identifies as frivolous.
Those who promote or adopt frivolous positions also risk a variety of other penalties. For example, taxpayers could be responsible for an accuracy-related penalty, a civil fraud penalty, an erroneous refund claim penalty or a failure to file penalty. The Tax Court may also impose a penalty against taxpayers who make frivolous arguments in court.
Taxpayers who rely on frivolous arguments and schemes may also face criminal prosecution for attempting to evade or defeat tax. Similarly, taxpayers may be convicted of a felony for willfully making and signing under penalties of perjury any return, statement or other document that the person does not believe to be true and correct as to every material matter.
Persons who promote frivolous arguments and those who assist taxpayers in claiming tax benefits based on frivolous arguments may be prosecuted for a criminal felony.

 

http://www.irs.gov/uac/Newsroom/IRS-Debunks-Frivolous-Tax-Arguments-2014

 

For the complete list http://www.irs.gov/Tax-Professionals/The-Truth-About-Frivolous-Tax-Arguments-Introduction

 

See also http://www.irs.gov/uac/Newsroom/IRS-Releases-the-“Dirty-Dozen”-Tax-Scams-for-2014;-Identity-Theft,-Phone-Scams-Lead-List

[Gregory Matthews]

They have been convicted, but not sentenced.