U.S. Cracks Down on Tax Defiers

WASHINGTON -- In the wake of the Wesley Snipes verdict, government officials are stepping up their crackdown on people who claim that there's no law requiring Americans to pay federal income taxes, the Wall Street Journal reported.

U.S. Justice Department officials announced a new initiative on Tuesday that will include expanded cooperation among government agencies to detect and prosecute wrongdoers who claim that paying taxes somehow is voluntary or that only foreign-source income can be taxed, or similar theories. Such claims have been routinely thrown out by the courts, according to the Journal.

Formerly known as tax protesters, a tax defier “seeks to deny and defy the fundamental validity of the tax laws,” according to the Justice Department website, the New York Times reported.

Nobody knows precisely how many people subscribe to such theories or won't file returns. But Justice Department officials are increasingly concerned because the Internet has made it much easier for promoters of tax-defiance programs to spread their message and sell products -- and to move clients' money offshore, the Wall Street Journal reported.

Since 2001, the Justice Department has won more than 300 civil injunctions against tax promoters and preparers; a third of which involved tax-defier activity. The efforts brought in $600 million in unpaid taxes, it said, according to Times reports.

-- NYSSCPA.org News Staff

Posted on 4/9/08