October 4, 2005

Schiff Criminal Tax Trial Fireworks Continue

Government’s Case Sputtering

Schiff Facing Jail For Contempt


The criminal tax trial of Irwin Schiff entered its fourth week Monday with a cantankerous Schiff apparently making significant headway in repelling the government’s prosecution witnesses who have testified thus far.

Schiff and his former co-workers, Cindy Neun and Larry Cohen, are defending against a plethora of criminal charges in Las Vegas stemming from consulting activities related to Schiff’s best-selling book, “The Federal Mafia: How the Government Illegally Imposes and Unlawfully Collects Income Taxes". 

The book, which contains a detailed analysis of the Internal Revenue Code and relevant Supreme Court decisions, was banned last year by a federal judge. In the Federal Mafia, Schiff details how anyone can file a legitimate income tax return, claiming their income as “zero” because the Supreme Court has repeatedly, and consistently, defined the legal term “income” as meaning a “corporate profit or gain”.  Schiff, who is arguably the leading expert and most troublesome public opponent of the 54,000 page Internal Revenue Code, has articulated in his speeches, written works and court filings that with regard to income taxes, the IRS has no legal jurisdiction over ordinary Americans and that there is no law actually imposing income taxes upon any individual. During the trial so far, no witness for the government has been able to cite the law actually imposing the liability for the tax.

Over the last three weeks, Schiff, who is defending himself with only court-appointed stand-by counsel, has repeatedly irked the court by his persistence in continuing to discuss specific aspects of US tax law, even though the court has forbidden Schiff to do so, claiming it alone, will instruct the jury as to the law.

Schiff’s rabid questioning of IRS witnesses and the continued objections of both the DOJ and the Court, which seek to suppress any discussion about the law, are apparently being noticed by the jury.  At one point during testimony last week, the jury, in a highly unusual act, catching the judge and all the attorneys by surprise, submitted several written questions to the court, one of which the judge refused to read in open proceedings.     

As of last Friday, Schiff has now been ordered to serve eight days for contempt of court for discussing the law, which USDC Judge Kent Dawson threatens to double for each infraction Schiff commits.

Despite the substantial handicap of being prohibited from rigorously cross-examining the government’s witnesses about the federal laws he and the co-defendants have been accused of violating, Schiff has repeatedly succeeded in forcing many of the government’s witnesses into admitting important facts and legal issues in favor of the defendants. According to Schiff, the government has yet to produce a single document into evidence establishing that the Defendants’ tax advice was false or fraudulent. 

On Monday, Schiff moved to strike the testimony of all government witnesses to date, asserting that the Court was directly violating the Supreme Court ruling in Cheek v. US, 498 U.S. 192 (1991). In Cheek, the Supreme Court specifically held that it was the burden of the government (not the court), to establish the specific laws and legal duties that the Defendants are accused of violating. 

Schiff stated for the record that for the jury to hear the law from only the “bench” was to effectively deny Schiff any opportunity to confront or cross-examine his accusers about the content or application of the law. The DOJ attorney openly stated that the government had no intention of providing a witness to testify about the law, and that it was relying on the Court to establish the law for the jury.  The Court denied Schiff’s motion.

Also on Monday, the U.S. Attorney requested that the judge issue a special instruction to the jury to clarify potential “confusion” that may have arisen during the testimony of government witnesses regarding the liability statutes that allegedly impose income taxes on wages and salaries.  Such instructions are usually given only just before the jury begins its deliberations. 

Schiff vehemently objected, noting for the record that the terms “wages” and “salaries” had been specifically deleted from the 1954 tax code, that the proposed instruction was contrary to legislative intent as evidenced by both House and Senate committee reports, and that the proposed instruction was a deliberate misstatement of the text of the current statutes.  Schiff further asserted that if the judge proceeded with giving a knowingly false jury instruction, that he was guilty of conspiring with the government to deny him a fair trial.

Despite Schiff’s objections, the Court issued the instruction to the jury.

The final government witnesses are scheduled to testify this week, including two IRS CID agents that Schiff has been denied from examining under oath during IRS’s several-year long civil prosecution of him. The defense case follows, beginning either late this week or early next week. 

Schiff again urges everyone to read his Motions to Dismiss, which succinctly detail the lack of jurisdiction and legal authority to impose or enforce the federal income tax on individuals.  See Schiff’s website, www.PayNoIncomeTax.com or the previous WTP update about Schiff to access these compelling court documents.

Irwin Schiff

Everyone is urged to support Irwin, Cindy and Larry and attend the final days of this very important trial that is continuing at the federal courthouse in Las Vegas, Nevada.  Although banned for sale by Schiff, copies of Irwin’s book, The Federal Mafia are available on e-Bay.  Schiff, an economist by profession, continues to sell other educational products at his website. You can listen to free audio interviews created by Schiff supporters at two “blogging” websites, http://triallogs.blogspot.com/ and http://irwinschiff.blogspot.com

Sign outside Schiff's Las Vegas office building


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