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Court halts Internet tax-avoidance scheme
By Grant Gross

A federal judge in Atlanta has ordered a Georgia man to stop selling a guide that tells buyers they can avoid U.S. income tax by "renouncing" their Social Security numbers and claiming to be "sovereign citizens."

Jonathan D. Luman, of Stockbridge, Georgia, was ordered Thursday to stop selling his Tax Buster Guide over the Internet, the U.S. Department of Justice (DOJ) announced Tuesday. Judge Clarence Cooper of the U.S. District Court for the Northern District of Georgia, in a preliminary injunction, held that Luman has falsely claimed that customers can avoid income tax by sending the U.S. Internal Revenue Service documents found in his guide.

The DOJ accused Luman of selling the guide over the Internet to customers in 41 states.

The court's order requires Luman to notify his customers of the injunction, to post the injunction on his Web sites and to give the DOJ a list of his customers' names, mailing and e-mail addresses, phone numbers and Social Security or employer identification numbers.

Luman did not answer his telephone Tuesday afternoon.

Posted December 14, 2004 09:45 PM |