(word processor parameters LM=8, RM=75, TM=2, BM=2) Taken from KeelyNet BBS (214) 324-3501 Sponsored by Vangard Sciences PO BOX 1031 Mesquite, TX 75150 There are ABSOLUTELY NO RESTRICTIONS on duplicating, publishing or distributing the files on KeelyNet except where noted! January 31, 1993 UNTAX.ASC -------------------------------------------------------------------- This file is from the Dallas Morning News of January 29, 1993 -------------------------------------------------------------------- For the last few years, we have heard of people who claim to be able to dissociate one from the tax system and do it legally. As I understood it, the fees begin at $600 and can go up to $3000 but it is claimed that one will no longer have to pay taxes. You must disavow yourself of the Social Security System, your Drivers License and other things that I am unclear on. Part of the idea was that the Federal government only has power over about 13 acres in the city of Washington and DOES NOT have dominion over anything outside those boundaries. When you sign up for Social Security and all the tax rigamarole, you allow yourself to be under the control of this mini government. The following article describes how one local group was busted. As you can tell, KeelyNet does not normally follow such subjects although the claims are intriguing especially if there is any validity to them. Strange that the IRS and the FEDS seem so persistent on busting these folks if it doesn't work anyway. -------------------------------------------------------------------- State accuses company of selling false tax data by Anne Belli The Texas attorney general's office Thursday sued a Richardson business (suburb of Dallas) accused of selling false information advising consumers that they don't have to pay federal income taxes. Also Thursday, the Internal Revenue Service seized many of the records, books, files and computers of the business, Certified Untax Consultants, as part of a federal criminal investigation. The state is seeking a court order to shut down the business. The IRS is continuing a criminal investigation, officials said. Officials with the company denied any illegal activity and said they were being unfairly targeted by the state and federal governments. "This is just part of their fear and intimidation tactics," said Richard L. Summers, 57, one of the business's three consultants. In addition to Mr. Summers, the attorney general's suit names as defendants Mr. Summers' wife, Shirley A. Summers, 58 and Charles A. Dixon, 55. The three call themselves "untax" consultants. Page 1 The suit also names The Pilot Connection, a company based in Stockton, Calif., that developed the "tax avoidance" material being marketed by the Richardson business. Darrell Spencer, general manager of the Pilot Connection, defended the organization and said all the information it sells through its consultants is accurate and based on IRS manuals. "Our program works," Mr. Spencer said. "It works really good, and that's why they hate us so much." Specifically, the attorney general's suit alleges that the Richardson company sells a program that advises consumers on how they may avoid paying taxes. The program, essentially a package of information that costs $2,100, contains false information that could result in civil and criminal penalties, the suit alleges. Some of the false information, according to the suit, includes contentions that: The IRS is NOT a part of the U.S. Treasury Department, rather a private Delaware corporation. The IRS lacks the authority to administer and enforce the federal internal revenue laws. Paying income taxes is voluntary, and no civil or criminal penalties may result. A person may avoid paying income taxes by not maintaining a bank account or signing a bank signature card. No law has been enacted ordering the payment of income taxes, and it is legally possible to permanently remove oneself from the income tax system. "The dangerous part about this is that some people may think they're buying bona fide advice when really what they're doing is signing up to be tax protestors," said Assistant Attorney General Robert Reyna, chief of the consumer protection division in Dallas. Mr. Reyna said he did not know how many people had purchased the tax avoidance packages through the Richardson company. But about 50 people a week have attended seminars explaining it, Mr. Reyna said. Mr. Summers said the Richardson office had been in business since October and had sold between 50 and 100 packages. "We haven't had anyone dissatisfied," Mr. Summers said. "Nobody has asked us for a refund." Mr. Spencer said the program teaches people how to avoid paying taxes, not evade them. Still, he acknowledged, the program's suggestions "aren't traditional methods." He agreed that the program recommends against establishing a bank account. But he said that doins so would prevent the IRS from illegally seizing assets. Page 2 "Our position is that if you legitimately owe a tax that you should pay it," Mr. Spencer said. "But we teach legal tax avoidance." He said The Pilot Connection had been in operation since 1982, but he declined to say how many "certified associate members," like the Summerses and Mr. Dixon, were operating nationwide. "I will tell you that we operate in every state," he said. Mr. Reyna said he would ask state District Judge Bill Rhea to soon set a court hearing to issue a temporary injunction preventing the Certified Untax Consultants and The Pilot Connection from operating. Eventually the attorney general's office wants the company to refund to consumers what they paid for the program, according to the suit. It also seeks up to $10,000 in damages from each defendant for violation of the state Deceptive Trade Practices Act. "This is the beginning of tax season, and we want to send an early warning to consumers that they should take a look at these tax packages," Mr. Reyna said. -------------------------------------------------------------------- Staff writer Tracy Everbach contributed to this report. -------------------------------------------------------------------- If you have comments or other information relating to such topics as this paper covers, please upload to KeelyNet or send to the Vangard Sciences address as listed on the first page. Thank you for your consideration, interest and support. Jerry W. Decker.........Ron Barker...........Chuck Henderson Vangard Sciences/KeelyNet -------------------------------------------------------------------- If we can be of service, you may contact Jerry at (214) 324-8741 or Ron at (214) 242-9346 -------------------------------------------------------------------- Page 3