Court Orders End to Tax Protest Scheme

A federal court has permanently barred a Queensbury, N.Y., man, Robert L. Schulz, and his organizations, We the People Congress and We the People Foundation, from promoting a tax scheme that encouraged businesses to stop withholding taxes from their employees' wages.

U.S. District Judge Thomas J. McAvoy said that Schulz and his foundations "relied on fringe opinions of known tax protestors whose theories have repeatedly been rejected by courts across the country." They promoted a tax scheme known as the Tax Termination Package.

Several of those tax protestors have been convicted of tax crimes, the judge noted. McAvoy ordered Schulz to give a copy of the court order to all the people and businesses that had bought or otherwise obtained his tax scheme. The court also told Schulz to give the Justice Department a list of all the names, addresses, phone numbers and Social Security numbers of his customers.

The court estimated that the U.S. Treasury has lost $4 million as a result of the scheme.

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