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1118Justice Department Pressured Into Raiding Tax Protester by Former Follower

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  • Steven Swan
    Feb 14, 2003
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      Justice Department Pressured Into Raiding Tax Protester by Former Follower
      (Auburn, N.H.) On Tuesday, February 11th, IRS Special Agents executed a search warrant at the office of nationally-known income tax protester Irwin Schiff in Las Vegas, Nevada and seized Schiff's computers, file cabinets, mailing lists, etc. A former follower of Schiff's believes that he was instrumental in pressuring the IRS and the Justice Department into raiding Schiff's office.
      Steven Swan of Auburn, New Hampshire was a student of Schiff's teachings regarding the federal income tax from 1996 through 2002. Swan even conducted his own seminars and set up his own Web site to promote Schiff's theories during that time period. Then in early 2002, Swan realized that Schiff's theories were incorrect and that because the IRS was becoming increasingly aggressive in collecting taxes, many of Schiff's followers would probably become victims of this increased aggressiveness if they were not warned. So Swan decided to do whatever he could to try to warn people not to become involved with Schiff and his theories about the income tax.
      First, Swan sent out press releases proclaiming that he had finally realized that Schiff's theories were incorrect and warning people not to get involved with them. But this information was not widely disseminated and did not have the desired effect, especially among people who were already Schiff followers.
      Then Swan decided to file a federal lawsuit against Schiff because Swan had been damaged by his reliance upon Schiff's erroneous income tax theories. Swan thought that this lawsuit might also serve as a warning to people not to get involved with Schiff. This lawsuit is still active in Federal District Court in Las Vegas. Swan recently filed a Motion for Summary Judgment against Schiff.
      Then Swan set up an extensive Internet Web site refuting Schiff's income tax theories one by one. This Web site is located at www.SchiffIsWrong.info.
      After Swan realized that Schiff's income tax theories were incorrect and that he and many other people had been damaged because of their reliance upon them, Swan thought that the Justice Department and the IRS would prevent Schiff from disseminating his theories any further in order to prevent others from being harmed. Swan waited and waited and waited, but nothing happened. Schiff continued operating his office in Las Vegas; he continued his weekly radio program in Las Vegas, which can also be heard on the Internet and, until recently, on shortwave radio and via satellite; he continued operating his Internet Web site; he continued his extensive advertising, he continued giving numerous interviews; etc. In essence, Schiff's audience kept getting larger and larger.
      Then Swan figured out why the Justice Department and the IRS had not tried to prevent Schiff from disseminating his erroneous income tax theories, even though Schiff had been at it for over a dozen years. By allowing Schiff to disseminate his theories, the Justice Department and the IRS had access to an ever-increasing pool of people to collect money from. The Government is able to collect much more money in taxes, penalties and interest by going after Schiff's myriad of followers than it is by going after Schiff himself. So the Government allowed Schiff to continue his operations. In addition, by allowing Schiff to convince more and more people that they could legally stop paying income taxes, the IRS and the Justice Department were able to justify their requests for more agents and attorneys and for their ever-increasing annual budgets. After all, it is a natual tendency for government to try to get bigger and bigger and to try to attain more and more power for itself.
      So Swan began issuing press releases and letters-to-the-editor criticizing the Government's policy of allowing Schiff to continue in business so that the Government could have an ever-increasing pool of average citizens to go after. Swan also wrote letters to the President and his Senators and Congressmen, as well as to the Senators from Nevada, to Attorney General Ashcroft, to the Secretary of the Treasury, to the Commissioner of the IRS, etc., about the Government's practice and its complicity in this corrupt enterprise. And Swan also filed a motion in his civil lawsuit against Schiff in federal court in Las Vegas asking the court for an injuction to shut down Schiff's criminal operation. This is something that the U.S. Attorney for the District of Nevada should have done a long time ago. (Just for good measure, Swan sent a copy of his motion to the U.S. Attorney so that the he would realize that Swan and others were  aware of what the Justice Department and the IRS were up to.) Swan is now looking into whether or not he might have an action against the IRS and the Justice Department for not shutting down Schiff's operation a long time ago and, in the meantime, allowing Swan to be damaged by his reliance upon Schiff's erroneous income tax theories.
      Swan believes that the pressure that he put on the IRS and the Justice Department was instrumental in forcing the IRS to execute a search warrant at Schiff's office earlier this week. Swan also believes that the IRS and the Justice Department should be held accountable for not going after Schiff sooner in order to have more otherwise innocent people to collect larger amounts of taxes, penalties and interest from. Swan believes that the Government's complicity in this matter is criminal in and of itself.
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