- AUBURN, NH - On
Wednesday, January 9th, 15-20 armed IRS Special Agents executed a
search warrant at the home and office of anti-Income Taxer Steven A.
Swan in Auburn, New Hampshire. Swan is being investigated by a federal
grand jury to determine whether or not he has committed any crimes
regarding the federal Income Tax. Swan believes that the federal
Income Tax has been fraudulently imposed upon the American people and
he has been attempting to expose this fraud since 1996 by conducting
seminars in person and on videotape and through the use of his Web
site at www.zeroincometax.com. Swan has hundreds of clients all over
the country who have used his information to stop paying federal
Income Taxes.
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- Swan first learned of the fraud of the Federal
Income Tax in 1995 from Libertarian Presidential candidate and Income
Tax expert Irwin Schiff of Las Vegas, Nevada. Schiff has written 3
books exposing the fraud of the Federal Income Tax--"How Anyone Can
Legally Stop Paying Income Taxes"; "The Great Income Tax Hoax"; and
"The Federal Mafia: How It Illegally Imposes and Unlawfully Collects
Income Taxes." Schiff's business is called Freedom Books and his Web
site is www.paynoincometax.com. His telephone number is 1 (800)
PAY-NOMO(RE).
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- About a year ago, Swan also initiated a petition
drive exposing the fraud of the Federal Income Tax. The basis for the
petition drive is the fact that in the late 1800's and early 1900's
(subsequent to the Industrial Revolution in this country), there were
many wealthy industrialists who were earning massive amounts of money,
but because there was no Income Tax at that time, they were paying
very little in taxes to the federal government. So there was a huge
groundswell in this country to amend the Constitution in order to
allow the Government to impose an Income Tax on the earnings of these
wealthy industrialists.
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- On his Web site, Swan has documented a tremendous
amount of testimony from the Congressional Record of U.S. Senators and
Congressmen who were in favor of amending the Constitution in order to
impose an Income Tax on these wealthy industrialists. And it is
clearly evident from this testimony that the wealthy were the only
Americans who would be subject to the tax.
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- It is Swan's contention that, if the evidence
clearly shows that the original intent of the Sixteenth Amendment was
only to authorize the federal government to impose an Income Tax on
the earnings of the wealthy, and that the Sixteenth Amendment has
never been modified since it was first adopted in 1913, then the
earnings of the wealthy are still the only items which should be
subject to the Federal Income Tax today. However, it is Swan's belief
that over time Congress has fraudulently expanded the Federal Income
Tax so that it is now imposed on virtually every American person and
business in this country.
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- Think about it. No matter what stage of history you
examine, most people have probably felt as though they paid too much
in taxes to the Government as it was. It is inconceivable that the
people of the United States would want to impose a new tax upon
themselves, this time upon their income. And it is even more
inconceivable that these people would rise up and expend the time and
effort to amend the Constitution in order to do so. But what is
conceivable is that the people would rise up and amend the
Constitution in order to impose an Income Tax on the earnings of the
wealthy. And if the testimony in the Congression Record from the U.S.
Senators and Congressmen can be believed, this is exactly what the
people did.
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- A few months ago, Swan filed a federal lawsuit
against the Government citing this fraudulent expansion of the Federal
Income Tax. His lawsuit may have led to the raid of his home and
office. Swan's lawsuit was dismissed by the U.S. District Court in
Concord, New Hampshire and is now on appeal at the First Circuit Court
of Appeals in Boston. One of the items seized by the IRS was all of
Swan's records concerning his current lawsuit against the Government.
Swan doesn't believe that it is fair for the Government to seize all
of his records concerning his current litigation against the
Government and he will be asking the IRS to return those records to
him.
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- During the search of his home and office, Swan was
given a letter from the Justice Department stating that he was being
investigated by a federal grand jury to determine whether or not he
had committed any crimes. The letter also invited Swan to testify
before the grand jury if he so desired. Swan is extremely pleased that
he will be able to present his evidence to the grand jury showing that
the Federal Income Tax has been fraudulently expanded beyond the
original intent of the Sixteenth Amendment.
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- Swan estimates that there are approximately 1
million Americans who have stopped paying Federal Income Taxes using
Irwin Schiff's material. And these people do file tax returns, which
includes an attachment explaining why the Federal Income Tax is a
fraud. Some of these people have been filing these "Zero Returns" for
up to 10 years and not one person who has been filing them has been
prosecuted. And many of them have even received refunds from the
IRS.
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- Swan believes that no one who has been filing Zero
Returns all of these years has been prosecuted because the Government
is very cautious as to who it targets. Over the years the Government
has lost some very high-profile Income Tax cases so it doesn't
prosecute anyone unless it believes it has a virtually guaranteed win.
Remember that a U.S. Attorney is a Presidential appointment and he
usually only holds office during the term of that President. Many U.S.
Attorneys use their temporary position as a stepping stone to a higher
office, either a federal judgeship, election to Congress, a
governorship, or for greater recognition after they go into private
practice. They are in office to get as many convictions as they can
and they will avoid any cases that they might not win.
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- Even though there are many people who have been
filing Zero Returns for many years, Swan says that it has been very
difficult disseminating this information to the general public. One of
the reasons is because the Government doesn't want this information
coming out in open court where a person's guilt or innocence will be
decided by a jury of 12 common citizens and in full view of the news
media. This is why no one who has been filing Zero Returns for all of
these years has been prosecuted.
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- Another reason why this information is so difficult
to disseminate to the general public is because the Income Tax return
preparation industry has become so large in this country. Consider how
many people make a living preparing tax returns for a tax which
virtually no one understands. There are millions of tax attorneys,
CPA's, accountants, H&R Block's and regular tax return preparers.
Even the IRS itself is wrong 50 percent of the time when asked
questions by taxpayers.
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- And because these Income Tax Return preparers spend
a tremendous amount of money advertising their services, the media is
reluctant to run advertisments for someone like Swan who has been
attempting to expose the Federal Income Tax as a fraud. For the past 4
years, the statewide newspaper in Swan's area has refused to run his
ads for his anti-Income Tax seminars, even though they did run his ads
when he first started conducting his seminars years ago. The Income
Tax return preparers don't want to see ads stating that the Income Tax
is a fraud so this information doesn't get out. And because the news
media doesn't want to alienate this large industry, it also doesn't
print any stories about the many people who are attempting to expose
the fraud of the Federal Income Tax.
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- Another reason why this information is so difficult
to disseminate is because of the negligence of the legal profession.
Either directly or indirectly, many lawyers earn their living through
the Income Tax so they do not want to see it being exposed as a fraud.
Some of these lawyers earn their money directly as tax attorneys, but
many more earn their money indirectly such as lawyers who assist
people in setting up corporations for tax purposes. And if someone
cannot pay their Income Taxes, many times they hire a lawyer to assist
them in filing for bankruptcy. And many couples who cannot pay their
Income Taxes end up getting divorced, which makes more work for
divorce attorneys. So the legal profession has a vested interest in
keeping the Income Tax around. If lawyers were really doing their job,
why have so many people been convicted for Income Tax evasion? If the
Fifth Amendment to the Constitution states that a person has a right
not to be a witness against himself, why does the legal profession
allow a person's tax return go into evidence? Because the legal
profession is complicit in the fraud, that's why.
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- And many federal judges feel as though it is their
duty as federal employees to collect taxes for the Government. So they
dismiss civil lawsuits against the Government on these grounds as
Swan's recent lawsuit was dismissed. And pity the poor lawyer who
attempts to go against the Establishment and make these arguments in
court. The federal judges rule against them in many of their cases and
try to put them out of business. And their fellow attorneys and the
Bar Associations advise them that it is not good for business to make
waves. It is really the legal profession more than anything else which
has allowed the fraudulent Federal Income Tax to proliferate and
flourish.
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- And don't attempt to make these arguments to your
U.S. Senators and Congressmen. The Federal Income Tax brings in
approximately $1 trillion per year into the federal coffers, which
Congress can then allocate to their pet projects in order to get
thenselves re-elected. Does anyone really believe that Congress would
like to see the fraud of the Federal Income Tax exposed? Not to
mention the fact that it is Congress who has allowed the Federal
Income Tax to be expanded beyond the original intent of the Sixteenth
Amendment in the first place.
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- At many of his anti-Income Tax seminars and on the
3-hour videotape of his seminar, Swan has bemoaned the fact that this
information is so difficult to disseminate to the general public. He
has even stated many times that as strange as it might seem, he would
really enjoy being indicted by a federal grand jury so that he could
get this information out in the open. At long last, it seems as though
Swan might get his wish. If the letter from the Justice Department is
accurate, at least he will be able to present his evidence to a
federal grand jury and put it in their hands. New Hampshire might just
be the place where the hated Federal Income Tax meets its
much-deserved demise.
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-
IRS Search Warrant Used In Raid On Tax
Protester Said Bogus
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1-19-2
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- AUBURN, NH - On January
8, 2002, U.S. Magistrate Judge James R. Muirhead of the U.S. District
Court in Concord, New Hampshire authorized a search warrant to be
executed by the Internal Revenue Service of the home and office of
Income Tax and Pro Se Legal Consultant Steven A. Swan of Auburn, New
Hampshire. The search warrant was executed by 15-20 armed I.R.S.
Special Agents on January 9, 2002 and pertained solely to federal
Income Tax laws. The carrying of firearms by these I.R.S. agents was a
clear violation of 26 U.S.C. 7608, which only authorizes I.R.S. agents
to carry firearms while enforcing federal Alcohol, Tobacco, and
Firearms laws, not Income Tax laws.
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- Swan is an Income Tax consultant to many people in
their dealings with the I.R.S., either administratively within the
I.R.S. or in federal court or Tax Court. There is no law against a
person or business consulting with their clients regarding Income
Taxes, as millions of other tax attorneys, C.P.A.'s, Enrolled Agents,
accountants, and tax preparers do every day in this country. However,
the raid on Swan's home and office which removed all of his client
files has effectively put him out of business. All of this without so
much as an indictment or any charges having been brought against him
and in violation of Swan's Fifth Amendment right to due process. The
evidence hasn't even been presented to a grand jury yet to determine
if there is enough evidence to even bring an indictment. Meanwhile,
Swan is out of business.
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- Swan also recently filed a federal lawsuit against
the federal government on the basis that there is a tremendous amount
of evidence in the Congressional Record prior to 1913 that the
original intent of the Sixteenth Amendment to the Constitution only
authorized Congress to impose an Income Tax on the earnings of wealthy
people and corporations in this country after the Industrial
Revolution. It is Swan's contention that since the Sixteenth Amendment
has never been changed or modified since its ratification (if, in
fact, it was legally ratified), the earnings of the wealthy are still
the only items which should be subject to the federal Income Tax and
that over time that tax has been fraudulently expanded by Congress to
impose an Income Tax on virtually every American.
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- The same U.S. magistrate judge (Muirhead) who
authorized the search warrant against Swan's home and office is the
same magistrate judge who recommended that Swan's lawsuit in federal
court in New Hampshire be dismissed. U.S. District Judge Steven J.
McAuliffe dismissed Swan's lawsuit based upon Magistrate Judge
Muirhead's Report and Recommendation. The lawsuit is now on appeal at
the First Circuit Court of Appeals in Boston and Swan is waiting for
the government to respond to his appeal brief. However, the I.R.S.
seized all of Swan's files regarding this current lawsuit when it
seized all of his other records. Does it seem fair that if the
government doesn't like a lawsuit that has been brought against it, it
can simply execute a search warrant and seize all of a person's
records concerning that lawsuit? I don't believe so.
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- On Swan's Web site www.zeroincometax.com there is a
petition that people can sign as a way to exercise their First
Amendment right to Petition the Government for Redress of Grievences
with respect to the fraudulent expansion of the Income Tax mentioned
earlier. The petition is addressed to Congress, the President of the
United States, the U.S. Supreme Court and others. During the raid on
Swan's home and office, the I.R.S. seized many signed petitions of
people who had exercised their First Amendment rights against the
Income Tax fraud perpetrated by government. Because the I.R.S. has
seized these signed petitions, these people have now been precluded
from exercising those rights.
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- Other items which were authorized by U.S. Magistrate
Judge Muirhead to be seized and which were seized by the I.R.S. were
"income tax returns, amended returns, schedules, statements,
certificates, attachments and other materials for filing with the IRS,
or for submitting to employers, which were prepared for others by
SWAN, or with his assistance, and all documents, records,
correspondence and other materials relating to the preparation of such
returns, schedules and other materials, included but not limited to
any correspondence or notices from the IRS, dated during, or
pertaining to, the period Janiary 1, 196, to the present;". As I
stated earlier, there are hundreds of thousands if not millions of
Americans and businesses who assist people in their dealings with the
I.R.S. every day. Are their records now subject to search and seizure
as well?
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- Other items authorized for seizure which were seized
by the I.R.S. were "customer or client lists, mailing lists,
'Rolodexes', address books, 'sign-in sheets' and other documants or
databases reflecting the identities of persons who have attended
SWAN's seminars or utilized SWAN's tax related services at any time
during the period January 1, 1996 to the present;". Now Swan has no
way to contact any of his clients. All of this with no charges having
even been filed against him. Whatever happened to the notion of
"innocent until proven guilty?" It is interesting that the U.S.
Attorney for New Hampshire (Thomas Colantuono) who is leading the
grand jury investigation into Swan's activities has only been in
office for a couple of weeks. Perhaps no one has informed him about
Americans' Constitutional rights as of yet. He must have skipped that
class in law school. U.S. Magistrate Judge Muirhead must have skipped
that class as well.
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- Other items authorized for seizure which were seized
by the I.R.S. were "pleadings, correspondence and other documents
relating to lawsuits or administrative claims, whether filed,
threatened or merely contemplated," (sounds like the Thought Police
are in full force) "against the IRS or its employees or anyone else
involved in the IRS collection process, dated during, or pertaining to
the period January 1, 1996, to the present;". Again, many Americans
all across the United States assist people in their dealings with the
I.R.S. every day. Are they next?
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- Other items authorized for seizure which were seized
by the I.R.S. were "books, publications, research, correspondence and
other materials relating to the federal income tax laws and
regulations;". Does this mean that every law library, law book
publisher, bookstore, Internet Web site, etc. which provides these
items are now subject to search and seizure? What's next- Big Brother
government agents conducting public book burnings like the Fire Men in
the movie "Farenheit 451"? The seizure of Swan's law reference
material practically guarantees that he will be unable to defend
himself against any actions the government might decide to take
against him. Does this seem like a fair practice by the United States
of America?
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- Other items authorized for seizure which were seized
by the I.R.S. were "audiotapes of audits or other meetings with
representatives of the IRS during the period January 1, 1996, to the
present;". Obviously, the I.R.S. already had their own copies of
"audiotapes of audits or other meetings with representatives of the
IRS". Why did they feel the need to seize Swan's copies.
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- Swan first became aware of the fraudulent nature of
the federal Income Tax in 1995 through the writings, audiotapes and
videotapes of 1996 Libertarian Presidential candidate and Income Tax
expert Irwin Schiff. Schiff has written many books about government
corruption including three about the Income Tax-"How Anyone Can Stop
Paying Income Taxes"; "The Great Income Tax Hoax"; and "The Federal
Mafia: How It Illegally Imposes and Unlawfully Collects Income Taxes."
Schiff has a Web site at www.paynoincometax.com.
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- To keep his students abreast of the latest research
regarding the I.R.S. and the Income Tax, Schiff periodically produces
sets of audiotape updates called the Schiff Audio Reports. Swan has
been a subscriber to the Schiff Audio Reports since he first met
Schiff just prior to the 1996 New Hampshire Presidential Primary.
Other items authorized for seizure which were seized by the I.R.S.
were "documents relating to Irwin Schiff, dated during, or pertaining
to, the period January 1, 1993." This means that Swan will not be able
to defend himself against the government using any of Schiff's
information if the need arises.
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- When all was said and done on January 9th, the
I.R.S. had removed 22 boxes of material from Swan's home and office
pursuant to this bogus search warrant. And in doing so, it seems as if
the I.R.S., U.S. Magistrate Judge Muirhead and the U.S. Attorney for
the District of New Hampshire Colantuono have violated many of Swan's
constitutional, statutory, and civil rights.
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- Anyone who cares about preserving freedom in this
country may wish to let them know how they feel about what these
people have done. U.S. District Court Judge McAuliffe's, Magistrate
Judge Muirhead's and U.S. Attorney Colantuono's mailing address is 55
Pleasant Street, Concord, NH 03301. McAuliffe and Muirhead are at the
U.S. District Court and Colantuono is at the U.S. Attorney's
Office.
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- The court's telephone number is (603) 225-1423 and
the U.S. Attorney's is (603) 225-1552. The I.R.S.' number is 1(800)
829-1040. >
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