Suit Alleges IL Man Sold Bogus ‘Defense’ to Refusal to File Returns & Pay Taxes

The Justice Department on Wednesday asked a federal court in Chicago to stop William J. Benson, of South Holland, IL, from selling an allegedly fraudulent tax scheme and from unlawfully interfering with the Internal Revenue Service (IRS).

The civil injunction complaint, which was filed on November 16, alleges that Benson, who also operates under the name Constitutional Research and Associates, charges $3,500 for documents, identified as the “Reliance Defense Package”, that supposedly provide purchasers with a legal defense to IRS action against them for failing to file federal income tax returns or pay taxes. The complaint says that Benson contends that the federal income tax is unconstitutional, a claim the Justice Department suit notes has been rejected by every federal court in which it has been raised.

In addition to barring Benson from selling the Reliance Defense Package, the government’s suit also asks the court to order Benson to send his customers a copy of the injunction; to give the government the names, addresses (including e-mail), Social Security and telephone numbers of his customers; and to post a copy of the injunction on his website, www.thelawthatneverwas.com.

“People who buy ‘defenses’ to tax evasion are not only wasting their money, but also buying trouble for themselves,” said Eileen J. O’Connor, Assistant Attorney General for the Justice Department’s Tax Division. “People who sell or use tax fraud schemes can expect serious trouble, including criminal charges where appropriate.”

You may like these other stories...

Renaissance avoided more than $6 billion tax, report saysThe Senate Permanent Subcommittee on Investigations said on Monday that a Renaissance Technologies LLC hedge fund’s investors probably avoided more than $6...
A new Gallup survey found that 58 percent of smokers in the United States see increased state and federal taxes on cigarettes as an act of unjust discrimination, while 39 percent believe the tax hikes are justified.The...
Liberal groups object to bill barring taxes on Internet accessThe Internet Tax Freedom Act hasn’t been a controversial bill. In fact, it’s so popular that senators are seeking to pair it up with a far more...

Upcoming CPE Webinars

Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.
Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.