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Federal Government Blocks New York Tax Protest Group

A federal court in Binghamton, New York, has permanently barred tax protester Robert Schulz and his two organizations, We the People Foundation for Constitutional Education Inc., and We the People Congress Inc., from promoting a tax fraud scheme.

Schulz is one of the most prominent leaders of the anti-government tax protest movement in the United States.

Schulz allegedly used the two entities to promote a nationwide tax fraud scheme called the "Tax Termination Package" to employers and employees, resulting in a loss of over $4 million to the U.S. Treasury. According to the government, the Tax Termination Package included We the People forms, which the defendants would fraudulently tell clients could be used to replace IRS forms, and to legally stop federal tax withholding.

The civil injunction order against Schulz, of Queensbury, New York, was handed down on August 9, 2007.

The court noted that Schulz based the scheme on commonly used tax protest arguments about federal tax law which have repeatedly been rejected by courts across the country. The U.S. District Judge found that Schulz "knew or had reason to know" that his statements were untrue.

The court ordered Schulz to give a copy of the court order to every client who had access to the tax scheme materials and to provide the Justice Department with a list of the names, addresses, telephone numbers, and Social Security numbers of all the individuals and businesses to whom Schulz and his organizations distributed the tax scheme materials.

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