FEDERAL COURT ENJOINS IRWIN SCHIFF AND ASSOCIATES

Temporary Restraining Order Entered

WASHINGTON, D.C. - Late yesterday, a federal court in Las Vegas issued a temporary restraining order barring Irwin Schiff and two associates, Cynthia Neun and Lawrence N. Cohen, from promoting their tax scams. The order prohibits the trio from holding any seminars to promote or sell Schiff's fraudulent "zero tax" plan or "any other false, fraudulent, or frivolous tax schemes or arguments." The order also prohibits Schiff and his associates from selling or advertising tax-scam books, audiotapes and other tax-related products and services, and from preparing any federal income tax returns for others. Within 10 days, Schiff, Neun, and Cohen must provide a copy of the order to their current customers and former customers with whom they have done business since January 1, 1999.

"Today's order is a victory for honest taxpayers," said Eileen J. O'Connor, Assistant Attorney General in charge of the Justice Department's Tax Division. "We will continue to take action to stop promoters who pitch tax scams."

According to court papers filed by the Justice Department, Schiff, Neun, and Cohen conduct seminars and sell audiotapes and other products designed to help customers evade federal taxes, primarily by filing income-tax returns falsely listing no income and no tax due. The Justice Department has alleged that customers of Schiff and his associates attempted to evade an estimated $56 million in income taxes from 1999 through 2001.

For copies of documents filed in this case and for information on other tax scam enforcement actions, go online to http://www.usdoj.gov/tax/taxpress2003.htm.

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