Irwin Schiff
Irwin Schiff
Irwin Schiff

Friday, August 15, 2003

Status Report From Irwin Schiff

From: Cindy Neun
Date: 2003/08/15 Fri AM 02:11:39 EDT
To: egroups
Subject: Irwin Schiff Reporting: CASE UPDATE

Well today Larry, Cindy, and I had to appear at a show cause hearing as to why we should not be held in contempt for allegedly violating the Court’s Preliminary Injunction Order. First of all, we have not violated the Court’s Order. The Court initially sought the injunction to allegedly stop me from selling an “abusive tax shelter” and because we were allegedly preparing false returns for people. First of all my book and supporting packets never constituted a tax shelter. Tax shelters generate deductions (sometimes legitimate sometimes not). Since we don’t take tax deductions but report “zero” income, we don’t need tax shelters. I told David Cay Johnston today that the Internal Revenue Code was my tax shelter; let’s see if he prints it. I also gave Johnston those two pages from those congressional reports which are now posted to my website. I pointed out to him that both the House and the Senate decreed that only income received in a “constitutional sense” was taxable under the 1954 Code. I pointed out to him that obviously income received in the “ordinary sense” is not the same thing as income received in the “constitutional sense.” I then explained to him why no individual could have income in the “constitutional sense.” I also explained to him that whenever the IRS claims that anyone has received taxable income, they always use the term “income” in the “ordinary sense,” not in the “constitutional sense.” Johnston admitted he had never seen those House and Senate Reports before. He thanked me for giving them to him. David Cay Johnston now knows that no one can owe income taxes, since nobody can receive income in the “constitutional sense.” Therefore he now knows that every prosecution for income tax evasion has to be illegal. Let’s see if he mentions these congressional reports in his story – if he writes it up at all. He also brought along a photographer who took a lot of pictures. Let see if those pictures show up in the “Times.” I believe that that Johnston was assured that I would be held to be in contempt and led away in hand cuffs, so he wanted to be sure to get those pictures.

But to get back to those alleged violations. I haven’t violated the terms of the Injunction as explained in the two documents I was prepared to submit today, but did not for the reasons explained further on.

In any case, I thought it best to hire a civil rights attorney to handle my case. Remember I was only officially notified on Wednesday about the hearing held on Thursday. I hired the lawyer yesterday. He had no time to prepare for today’s hearing – so he got a 10 day continuance. To fill you in some more, I have included below two documents I was going to file today but didn’t it. Since I retained a lawyer, he wanted to withhold the filing of any documents until he had an opportunity to do so on his own. Be sure to download those congressional reports from my website and distribute them far and wide. Stay tuned. Irwin Schiff