"Laugh test" lawyer, et al, under attack!
- I noticed Milton Baxley, the "laugh test" lawyer we have discussed
here in recent days, is mentioned as a target of the suit discussed
in the article following my name below. Kinda interesting to how
they attempt to let God take the credit for their antics.
The New York Times
December 9, 2003
HEADLINE: Court Is Asked to Block False Complaints Against I.R.S.
BYLINE: By DAVID CAY JOHNSTON
Nearly 2,000 bogus misconduct complaints against Internal Revenue
Service agents were filed as part of a long-running fraud by a group
that calls itself a Christian ministry to obstruct the federal income
tax laws, the Justice Department said in papers filed yesterday in a
court in Florida.
The Justice Department said the false complaints were made to
intimidate tax agents. The complaints cited the 1998 I.R.S. Reform
and Restructuring Act, which requires the firing of tax agency
workers who commit improper acts known as the "10 deadly sins." Some
false complaints also asserted that I.R.S. agents had committed
The filing of a complaint, which under the law initiated an
investigation of the agent, cost each client $25 to $1,400, plus an
annual fee of at least $150, according to papers filed in Federal
District Court in Ocala, Fla.
Named as leaders of the plan were Milton Hargraves Baxley II, a
lawyer in Gainesville, Fla.; Eddie Kahn, a lecturer in Sorrento,
Fla.; Mr. Kahn's wife, Kathleen; and Bryan Malatesta, a certified
public accountant in Cleburne, Tex.
Mr. Kahn, who tells clients that no law requires the payment of
taxes, runs American Rights Litigators, which he transformed in
August into Guiding Light of God Ministries. The Justice Department
said the ministry was a business, indistinguishable except in name
from American Rights Litigators.
The same group was involved in an effort by Wesley Snipes, the actor,
to get back all the taxes he paid from 1997 through 2000 by saying he
had no taxable income. For 1997, Mr. Snipes sought a refund of $7.3
million on more than $19 million of income. There was no indication
that Mr. Snipes ever filed a misconduct complaint against the I.R.S.
While Mr. Snipes's attempt to have his taxes refunded failed,
thousands of other people received refunds.
The Justice Department lawsuit seeks an injunction barring the
leaders and an associate, David Lokietz, from promoting tax evasion
and obstructing enforcement of the tax laws. It said that the
government would suffer irreparable harm if an injunction was not
granted and that the defendants would suffer no harm by being
required to obey the law.
Since the 1998 law was passed, I.R.S. auditors, supervisors and
lawyers have repeatedly complained about false complaints.
The lawsuit is the first instance of the government's saying an
organized plan exists to fabricate complaints for profit.