FEDERAL COURT BLOCKS INTERNET TAX SCAM

Georgia Man Allegedly Sold “Tax Buster” Scheme to Customers in 41 States

WASHINGTON, D.C. - The Justice Department announced today that a federal court in Atlanta has halted a tax scheme that promises customers they can avoid income tax by “renouncing” their Social Security numbers and claiming to be “sovereign citizens.” The preliminary injunction order entered against Jonathan D. Luman, of Stockbridge, Georgia, blocks sales of his “Tax Buster” program. The court held that Luman falsely tells customers that they can avoid federal income tax by sending the IRS documents found in Luman’s “Tax Buster Guide.” Court filings alleged that Luman sold the scheme over the Internet to customers in 41 states.

“Any plan purporting to eliminate your obligations under the tax laws is a scam,” said Eileen J. O’Connor, Assistant Attorney General for the Justice Department’s Tax Division. “The Department of Justice and the Internal Revenue Service are working vigorously to shut down tax scams.”

The court’s order requires Luman to notify his customers of the injunction, to post it on his websites, and to give the Justice Department a list of his customers’ names, mailing and e-mail addresses, phone numbers, and Social Security or employer identification numbers.

Additional information about this case is available at http://www.usdoj.gov/tax/txdv04605.htm. More information about the Justice Department’s efforts against tax scam promoters can be found at: http://www.usdoj.gov/tax/taxpress2004.htm. More information about the Justice Department’s Tax Division can be found at http://www.usdoj.gov/tax.