FOR IMMEDIATE RELEASE
THURSDAY, MARCH 13, 2003
WWW.USDOJ.GOV
TAX
(202) 514-2007
TDD (202) 514-1888
JUSTICE ASKS COURT TO STOP ALLEGED MAJOR TAX-SCAM PROMOTERS
Irwin Schiff, twice convicted of tax crimes, allegedly promotes
fraudulent tax schemes on radio and television
WASHINGTON, D.C. - Late yesterday, the Justice Department asked a
federal court in Las Vegas to issue a restraining order stopping Irwin
Schiff and two associates, Cynthia Neun and Lawrence N. Cohen, from
promoting an alleged major tax fraud scam. In the complaint and brief
filed in the District of Nevada, the government alleges that Schiff,
Neun, and Cohen conduct seminars and sell audiotapes and other products
designed to help customers evade federal taxes, primarily by filing
income-tax returns falsely listing no income and no tax due.
The Justice Department further alleges that Schiff has promoted his
scheme on national talk-radio shows and has twice appeared as a guest on
a national cable-television news program. The Department has asked the
court to stop Schiff and his associates from selling their tax scams,
preparing federal tax returns and holding tax seminars, including one
scheduled for March 29th in Las Vegas.
"Shutting down tax scammers is a high priority for the Justice
Department," said Eileen J. O'Connor, Assistant Attorney General in
charge of the Justice Department's Tax Division. "We have zero tolerance
for those who make a living selling tax-scheme packages that falsely
promise zero tax liability."
Previously, Schiff has been convicted twice for federal tax crimes.
According to papers filed in the suit, Schiff's customers have also been
found guilty of tax crimes and received monetary penalties for asserting
Schiff's false positions about the tax laws; federal courts have called
those positions "frivolous." The complaint also alleges that the IRS
estimates that Schiff's customers have attempted to evade over $56
million in income taxes, from 1999 to 2001.
This lawsuit is the latest in a series of actions brought by the Justice
Department in recent years against alleged tax scam promoters across the
country. In the past two years, the Department has filed suits asking
for injunction orders against 32 promoters and has prevailed in every
case decided so far.
"We plan to go after many more and will continue pursuing tax scam
promoters until the problem is solved," said Assistant Attorney General
O'Connor.
For copies of documents filed in this case and for information on other
tax scam enforcement actions, go online to go online to US Department of Justice Website.
