Federal Court Takes Action Against Illegal Tax Promotions

A federal court in Tampa, Florida has obtained a permanent injunction against tax-avoidance promoter Joseph N. Sweet and his organization, EDM Enterprises, of Bradenton, Florida ordering them to cease selling and promoting tax avoidance plans and tax shelters.

Mr. Sweet is the author of a tax advice book, "Good News for Form 1040 Filers: Your Compliance is Strictly Voluntary! Bad News for the IRS! Everything You Ever Needed to Know About the Income Tax That the IRS is Afraid You'll Find Out." The book tells readers that they can't get in trouble for refusing to file income tax returns.

The injunction orders Mr. Sweet and EDM to contact customers who have purchased the organization's abusive tax promotions and inform them of the injunction. Mr. Sweet and EDM have sold books, tax avoidance degrees, and other materials to at least 650 people, and at least 400 asset protection trusts have been sold. Mr. Sweet and EDM have collected more than $6.5 million for these various tax avoidance materials.

Furthermore, Mr. Sweet has been ordered to stop making statements that income taxes are voluntary and that the Internal Revenue Service has no authority to collect taxes.