'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.

You may like these other stories...

Plan ahead before you buy some shares in a stock mutual fund near yearend, when the fund is about to pay a dividend. It might be better to wait until after the fund goes "ex-dividend," that is, wait until after the...
AgFeed agrees to pay $18 million to settle SEC accounting fraud caseMichael Rapoport of the Wall Street Journal reported on Monday that AgFeed Industries Inc. has agreed to pay $18 million to settle US Securities and...
Many accountants struggle with payroll, either because they have too much of it or they don't want to do any of it. Either way, they are at odds with the needs of their business clients. Most clients are looking for a...

Already a member? log in here.

Upcoming CPE Webinars

Sep 18
In this course, Amber Setter will shine the light on different types of leadership behavior- an integral part of everyone's career.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.