--- Previous Politech message: http://www.politechbot.com/p-04607.html > >_____________________________________________________________________________ >FOR IMMEDIATE RELEASE TAX >MONDAY, AUGUST 9, 2004 (202) 514-2007 >WWW.USDOJ.GOV >TDD (202) 514-1888 > >NINTH CIRCUIT AFFIRMS ORDER ENJOINING IRWIN SCHIFF >AND TWO ASSOCIATES > >Tax-Scheme Promoters Barred from Selling Tax-Scheme Materials > >WASHINGTON D.C. - The United States Court of Appeals for the Ninth >Circuit today affirmed a federal district court preliminary injunction >barring Irwin Schiff and two associates, Cynthia Neun and Lawrence N. >Cohen, from selling their tax scheme, which according to the court's >holding fraudulently claims that paying federal income tax is voluntary. >The preliminary injunction bars Schiff and his associates from: 1) >advertising or selling Schiff's "zero-income tax return" plan; 2) >preparing tax returns for others; and 3) assisting others to violate the >tax law, including by "selling services, books or other materials that >provide direction about how to fill out fraudulent or false tax forms." >The preliminary injunction also requires Schiff, Neun, and Cohen to >provide a copy of it to each of their customers, to post it on their >websites, and to provide the government with a list of their customers. >The Ninth Circuit rejected Schiff's contention, also asserted by the >American Civil Liberties Union in a "friend of the court" brief, that the >injunction violated the First Amendment because it prohibited the sale of >Schiff's book, The Federal Mafia. The court held that the portions of the >book that the government sought to enjoin were "fraudulent commercial >speech" and as such were not protected by the First Amendment. The >appeals court also held that it was not a violation of the First Amendment >for the lower court to require Schiff to post the injunction on his website. >"Today's decision affirms the government's ability to take action against >tax scams," said Eileen J. O'Connor, Assistant Attorney General for the >Justice Department's Tax Division. "As the Supreme Court recently held in >a unanimous decision, 'the First Amendment does not shield fraud.'" >In issuing the preliminary injunction, the United States District Court >for the District of Nevada had found that the promotion of Schiff's scheme >"has involved over 3,000 individuals and an estimated $56 million in >attempted tax evasion," further noting that "a number of individuals have >been convicted of tax crimes after following Schiff's theories." >For more information on this case and for information on other tax-scam >enforcement actions, go online to <http://www.usdoj.gov/tax/03_tax_167.htm> > >### >04-551 > > > > > _______________________________________________ Politech mailing list Archived at http://www.politechbot.com/ Moderated by Declan McCullagh (http://www.mccullagh.org/)
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