WASHINGTON—The Justice Department announced today that a federal court has permanently barred San Diego resident Christopher M. Hansen from promoting a tax evasion scheme. Hansen promotes a number of tax-fraud schemes using the business names of the Family Guardian and the Sovereignty Education and Defense Ministry. The civil injunction order bans Hansen from making fraudulent statements in connection with his scheme, including the false statements that only federal workers are subject to the Internal Revenue Code, workers need not submit accurate withholding forms, and that United States citizens are not subject to federal income taxes.
The court’s opinion states that Hansen sells products to help customers evade paying federal taxes and obstruct IRS examinations. According to the opinion, Hansen assists customers in preparing false or fraudulent tax returns or tells them not to file at all. Hansen also markets a “Citizenship Administrative Repudiation” program in which his customers purportedly give up their “U.S. citizenship” in favor of “American National citizenship,” which Hansen claims makes customers no longer liable for federal income taxes. The court found that Hansen knew or should know that the theories he uses to urge persons to avoid paying taxes are false or fraudulent. The injunction was filed on June 1, 2006.
The court’s order requires Hansen to remove from his Web sites all advertising for his fraudulent tax programs and to post the permanent injunction order on the Web sites. Hansen must also provide the government the names, addresses, e-mail addresses, phone numbers and social security numbers of those persons who have purchased his products.
“Zero returns” are on the IRS’s annual list of the “Dirty Dozen” tax scams that taxpayers are urged to avoid, available at http:///www.irs.gov/newsroom/article/0,,id=154293,00.html. The Justice Department has obtained injunctions against more than 180 tax-fraud promoters and tax preparers since 2001. More information about the Justice Department’s efforts against tax-scam promoters can be found at http://www.usdoj.gov/tax/taxpress2006.htm. Information about the Justice Department’s Tax Division can be found at http://www.usdoj.gov/tax.