'Tax Buster' Internet Tax Scam Halted | AccountingWEB

'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.

Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked

Editor's Choice

WHAT KIND OF FIRM ARE YOU?
As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
This is strictly for internal use and data will not be sold
or shared with any third parties.