FOR IMMEDIATE RELEASE                                         TAX
TUESDAY, MARCH 4,1997                              (202) 514-2008
                                               TDD (202) 514-1888
     U.S. SUES TO HALT DISTRIBUTION OF DE-TAXING AMERICA 
                      PROGRAM IN MILWAUKEE

                                 
     WASHINGTON, D.C. -- Two Wisconsin men who allegedly sold and
distributed a program that encouraged taxpayers to avoid paying
taxes have been sued by the U.S. Department of Justice.  The
civil suit, filed late yesterday in U.S. District Court in
Milwaukee, seeks to halt the sale of an allegedly abusive tax
shelter called the "De-Taxing America Program."

     Loretta Argrett, Assistant Attorney General for the Tax
Division, said that the suit is part of an ongoing effort by the
Justice Department to halt the sale and distribution of so-called
illegal tax protester packages designed to interfere with the
IRS' proper administration of the tax laws.  
     The suit names two defendants, Robert R. Raymond and Robert
G. Bernhoft, in their individual capacities, and doing business
as Morningstar Consultants.  Raymond resides in Grafton,
Wisconsin and Bernhoft lives in South Milwaukee.  

     "Taxpayers approached by promoters of these schemes should
be extremely careful and not be induced into disregarding their
tax obligations," said Argrett.  "Taxpayers who use these schemes
to evade federal taxes may ultimately be subject to criminal
prosecution and responsible for paying not only the taxes owed,
but also any interest and applicable penalties."

     The complaint alleges that as part of the "De-Taxing America
Program," Raymond and Bernhoft distributed instructions to
taxpayers on how to complete IRS forms and how to write to the
Internal Revenue Service in order to obtain federal income tax
and social security tax refunds to which they were not entitled. 
The complaint also alleges that Raymond and Bernhoft made false
statements to market the "De-Taxing America Program," such as
"The Internal Revenue Code is unconstitutional and was never
enacted into law," "individuals who reside in the several states
of the United States of America are not citizens of the United
States of America for federal income tax purposes" and "wages do
not constitute taxable income." 

     The lawsuit seeks a court order requiring the defendants to
stop marketing the program.  It alleges that by continuing to
sell and distribute the "De-Taxing America Program," the
defendants are interferring with the ability of the IRS to
enforce the tax laws. 

     The civil suit estimates that the potential loss of revenue
to the Federal Treasury as a result of Raymond and Bernhoft's
continued conduct exceeds $1.5 million.
                              # # #
97-094