'Zero' Tax Returns Trigger Criminal Indictment
The message below is from an e-mail message I received on May 1, 2000. This
is not the first such message I have received.
"Otto, I have been indicted under 7206 (giving false information on a
return), for the years 91-94.. I filed "Irwin Schiff" type 0" returns w/ his
attachment.. (big mistake) I was under CID investigation and being
threatened w/ evasion... (had not filed since '79).. and didn't know what
else to do (so I took Irwin's advice and filed the "0" returns and also
wrote a letter to the U.S.Atty to "intimidate" him.. WRONG!)"
This message is from a man who has been indicted under 26 U.S.C. 7206 for
FOUR FELONY COUNTS for filing what is known as "Zero" tax returns.
According to section 7206, the maximum criminal penalty is a fine of
$100,000 and/or imprisonment for three years FOR EACH of the four counts.
As stated above, this is not the first such message I have received, and I
do not expect it to be the last. I believe the government is just getting
warmed up in bringing criminal charges against people who have filed "Zero"
(Individuals who have studied my books and newsletters will probably be able
to make a pretty good guess as to why the government chose to indict this
individual under section 7206 rather than trying to indict him for attempted
tax evasion under section 7201, as they had originally threatened to do.)
I have also received many, many messages from people who have received three
to four $500 civil penalties for having filed "Zero" tax returns. I have
yet to talk with anyone who has filed "Zero" tax returns who had bothered to
get copies of and study the court cases upon which they supposedly relied
BEFORE they filed such returns. If these people had made such a study, I
think most of them would not have filed "Zero" tax returns in the first
For several years now I have been trying to warn people about filing this
kind of tax return. On my web site at www.ottoskinner.com I have some
special articles on this subject. In these articles, I refer to and explain
various court cases which are supposedly relied upon by both the promoters
of the "Zero" tax return as well as those who have filed such returns. I
urge the readers of this messages to study the articles from my web site and
also obtain copies of the court cases and study these cases thoroughly.
I believe that those who will actually study these court cases will find
that the cases do not really say what Schiff claims that they say. In other
words, I believe you will find that the cases do not stand for the
propositions that Schiff claims they stand for. But the only way you are
going to know for sure is to STUDY THE CASES FOR YOURSELF. My articles are
on my web site to sort of give you a helping hand in understanding the cases
and to help you learn what to look for.
I should add that I personally believe that Irwin Schiff has led his readers
down the primrose path to legally flawed conclusions on at least 16
different issues. (I discuss these issues in my books, newsletters and on
my web site.) I should also add that I personally believe that anyone who
has recommended Irwin Schiff's material to you has not done you any favor.
The reason I say this is because it is very hard to unlearn flawed
information and I truly believe that Schiff's material is extremely flawed.
In the long run, it will be UP TO YOU to make the right decisions regarding
the correctness of your legal position.
I am well aware of the fact that Schiff and a few other promoters have
condemned and discredited my books for many years. But when you get to my
web site, take time out to see what other readers have to say.
Feel free to forward this message on to other individuals and groups you
think may be interested.
NOTE: Most Americans have been provided very little accurate information
about the so-called "income" tax and the Sixteenth Amendment. They have
also been tremendously misled and misinformed regarding these issues. Even
people within what may be termed as the "patriot movement" (or "freedom
movement" or "non-filing community") have been provided with a great deal of
false information. Confusion and disagreements abound.
My first book, The Best Kept Secret, provides the very clearest and best
explanation of the so-called "income" tax and the Sixteenth Amendment ever
written up to 1997. First written in 1986 and revised in 1996, it probably
still provides the very best introduction into these issues, as well as
providing a solid foundation for understanding the material provided in my
next two books. While there is some duplication of information, not all of
the information in The Best Kept Secret is carried over into the next two
My second book, If You Are the Defendant, digs deeper into the Internal
Revenue Code and introduces defense strategy information for those who may
eventually be criminally charged for alleged violations of the tax laws.
This book provides the important distinction between being charged by
"information" as opposed to being indicted. Again, not all of the
information in If You Are the Defendant is carried over into the next book.
My latest book, The Biggest "Tax Loophole" of All, published in 1997, is two
pounds of "dynamite" information. This book digs even deeper into the
issues and also explains many of the legally flawed arguments and other
items of misinformation that have been perpetrated upon non-filers and the
rest of America. This book provides important information regarding
summonses for books and records. This book also explains legally
insufficient indictments and why they should be legally dismissed. This
book also provides a sample motion to dismiss such legally insufficient
Having been involved in these issues for over 19 years, I sincerely believe
that individuals should study all three of my books and all 21 past issues
of the newsletters, page by page, cover to cover, and in the order they were
written. Additionally, I sincerely believe that individuals should study
all of the applicable court cases in order to verify for themselves the
material contained in my books and newsletters. (Along with other valuable
information, the newsletters contain a trial transcript with pleadings, and
with my comments and analysis added as the trial moves along.) Individuals
who have followed these admonitions have learned a great deal and appreciate
the value of thoroughly studying the issues in this manner.
I should add that my first two books were entered by a defendant as evidence
in a federal criminal trial, with the defendant walking away with NOT GUILTY
verdicts on all counts. This case involved charges of attempted tax evasion
and failure to file tax returns.
For more information about the above material, see www.ottoskinner.com
Feel free to forward this message on to individuals and groups you think may