JUSTICE DEPARTMENT SUES TO HALT SAN DIEGO MAN’S ALLEGED TAX-FRAUD SCHEMES

San Diego Man Fraudulently Changed Individuals Citizenship To Evade Income Tax

WASHINGTON, D.C. - The Justice Department today asked a California federal court to permanently bar Christopher M. Hansen, of San Diego, from selling tax-fraud schemes. The civil injunction suit, filed in the U.S. District Court for the Southern District of California, in San Diego, alleges that Hansen markets a number of products and services to help customers illegally evade federal taxes and obstruct IRS investigations of their illegal activities. The government also seeks a court order directing Hansen to provide the government his customers’ names, mailing and e-mail addresses, and telephone and Social Security numbers.

According to the complaint, Hansen helps customers prepare false tax returns and forms or tells customers not to file a return at all. Hansen allegedly tells customers that the federal income tax applies only to federal workers and that wages cannot be taxed. Courts across the country have repeatedly rejected these arguments, labeling them frivolous.

“People who sell tax scams enrich themselves at the expense of their customers and law-abiding Americans who pay taxes,” said Eileen J. O’Connor, Assistant Attorney General for the Justice Department’s Tax Division. “The Justice Department and the Internal Revenue Service are working vigorously to stop the promotion of tax fraud.”

The suit also alleges that Hansen peddles a “Citizenship Administrative Program,” which he fraudulently claims will enable customers to repudiate their U.S. citizenship in favor of “American National citizenship” and thereby remove themselves from the federal income tax system. Hansen allegedly charges $2,000 for one person or $2,700 for a couple for this purported service. A federal court in Colorado enjoined a similar tax scam in 2003. More information about the Colorado case is available at <http://www.usdoj.gov/tax/txdv03641.htm>.

The Justice Department has sought and obtained injunctions against a number of tax-scheme promoters. More information about these cases is available on the Justice Department website at <http://www.usdoj.gov/tax/taxpress2005.htm>. More information about the Justice Department’s Tax Division can be found at <http://www.usdoj.gov/tax>.

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