WASHINGTON – A Greenville, S.C., federal judge has permanently barred Robert Barnwell Clarkson and his so-called “Patriot Network” from promoting tax-fraud schemes, the Justice Department announced today. The court found that Clarkson falsely instructed Patriot Network members that they need not file federal income tax returns. The court also held that Clarkson helped members obstruct IRS efforts to collect taxes.
In seeking the permanent injunction, the Justice Department submitted Clarkson’s Untaxing Packet, which he sold for $300, containing form letters that he falsely claimed would exempt purchasers from federal tax laws. Papers filed in the case showed that Clarkson boasted that he “untaxed” more than 8,000 people over 30 years.
The court also detailed Clarkson’s efforts at interfering with tax collection, including Clarkson’s instruction to transfer property to nominees and to sue IRS agents who attempt to collect taxes. Clarkson, a disbarred attorney from Anderson, S.C., has twice been convicted of federal tax-related crimes.
The court ordered Clarkson to give copies of the injunction to people who bought his products and to post the injunction on the Patriot Network Web site.
Since 2001 the Justice Department has obtained injunctions against more than 240 tax preparers and tax-fraud promoters. Information on those cases is available at http://www.usdoj.gov/tax/taxpress2007.htm. More information about the Justice Department’s Tax Division can be found at http://www.usdoj.gov/tax.