'Tax Buster' Internet Tax Scam Halted

The Justice Department announced on Tuesday that a federal court in Atlanta has halted a tax scheme that promises customers they can avoid income tax by “renouncing” their Social Security numbers and claiming to be “sovereign citizens.”

The preliminary injunction order entered against Jonathan D. Luman, of Stockbridge, Georgia, blocks sales of his “Tax Buster” program. The court held that Luman falsely tells customers that they can avoid federal income tax by sending the IRS documents found in Luman’s “Tax Buster Guide.”

Court filings alleged that Luman sold the scheme over the Internet to customers in 41 states.

“Any plan purporting to eliminate your obligations under the tax laws is a scam,” said Eileen J. O’Connor, Assistant Attorney General for the Justice Department’s Tax Division. “The Department of Justice and the Internal Revenue Service are working vigorously to shut down tax scams.”

The court’s order requires Luman to notify his customers of the injunction, to post it on his websites, and to give the Justice Department a list of his customers’ names, mailing and e-mail addresses, phone numbers, and Social Security or employer identification numbers.

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