Seattle — A federal court here has barred a Tacoma, Wash., resident from selling fraudulent tax schemes based on an argument that employees don’t have to pay taxes on income they get from U.S. sources.
According to papers filed in the pending case, Jack Cohen, through his “Tax Ax” Web site, told employers to stop withholding federal taxes, and sold products such as the “W-4 Killer Pack,” which he advertised as “a kit for employees who wish to stop the withholding process.” He also sold the “Tax-Collecting Employer Challenge” for $250, a kit that told employees to send letters to their employers threatening to sue unless they stopped withholding taxes from their paychecks.
Pursuant to the court’s order, Cohen must post a copy of the injunction on his Web site and must remove all false statements about the tax laws on the site. The order also requires Cohen to send a copy of the court’s order to his customers and to give the Justice Department a list of his customers.
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