JUSTICE DEPARTMENT SUES TO BAR MICHIGAN MAN FROM PROMOTING ALLEGED TAX-FRAUD SCHEME

The following press release was published by the US Department of Justice on Nov. 9, 2005. It is reproduced in full below.

FOR IMMEDIATE RELEASE WEDNESDAY, NOVEMBER 9, 2005 WWW.USDOJ.GOV TAX (202) 514-2007 TDD (202) 514-1888 Complaint Says Battle Creek-based Leader of “Lawmen” Group Tells Customers That Paying Taxes is Voluntary WASHINGTON D.C. - The Justice Department has asked a federal court to bar Charles Conces, of Battle Creek, Michigan, from promoting and implementing an alleged tax-fraud scheme that is based on the false theory that income taxes are voluntary. The complaint, filed in Grand Rapids in the U.S. District Court for the Western District of Michigan, alleges that Conces conducts his activities through an organization called the “Lawmen.” The lawsuit also seeks an order requiring Conces to give the Justice Department his customers’ names, Social Security and telephone numbers and mailing and e-mail addresses.

The complaint alleges that Conces helps customers to file so-called “zero” federal income tax returns that falsely report no income, sells an attachment to be used on zero returns, and sells frivolous letters, forms, and lawsuit papers for his customers to use to threaten IRS employees and obstruct the administration and enforcement of the tax laws. The complaint alleges that Conces promotes his scheme through e-mail groups, web sites, an Internet bulletin board, seminars, and meetings of his organization. He allegedly charges customers $25 to $330 for his scheme.

A federal court in Las Vegas barred a similar zero-income tax scam promoted by tax resister Irwin Schiff, who later was convicted of multiple tax crimes. More information about this conviction is available at: “The Justice Department is committed to stopping the promotion of tax fraud,” said Eileen J. O’Connor, Assistant Attorney General for the Justice Department’s Tax Division. “People who participate in these schemes are buying themselves past due tax bills with interest, penalties, and the possibility of more serious legal consequences” This suit is part of a continuing nationwide crackdown on the preparation and filing of false or fraudulent tax returns. Since 2001, the Justice Department has sought and obtained injunctions against more than 120 tax-scam promoters. More information about these cases is available at:. More information about the Justice Department’s Tax Division can be found at:. 05-604

Source: US Department of Justice