From: Steven Swan [mailto:stevenswan@earthlink.net]
Sent: Thursday, January 10, 2002 8:48 AM
To: (redacted)
Subject: IRS Raids Anti-Income Tax Expert's Home and Office

For Immediate Release: January 9, 2002

Contact: Steven A. Swan, P.O. Box 453, Auburn, NH 03032 (603) 483-0550

 Auburn, N.H. On Wednesday, January 9th, 15-20 armed IRS Special Agents executed a search warrant at the home and office of anti-Income Tax expert, Steven A. Swan in Auburn, New Hampshire. Swan is being investigated by a federal grand jury to determine whether or not he has committed any crimes regarding the federal Income Tax. Swan believes that the federal Income Tax has been fraudulently imposed upon the American people and he has been attempting to expose this fraud since 1996 by conducting seminars in person and on videotape and through the use of his Web site at www.zeroincometax.com. Swan has hundreds of clients  all over the country who have used his information to stop paying federal Income Taxes.

     Swan first learned of the fraud of the Federal Income Tax in 1995 from Libertarian Presidential candidate and Income Tax expert Irwin Schiff of Las Vegas, Nevada. Schiff has written 3 books exposing the fraud of the Federal Income Tax--"How Anyone Can Legally Stop Paying Income Taxes"; "The Great Income Tax Hoax"; and "The Federal Mafia: How It Illegally Imposes and Unlawfully Collects Income Taxes." Schiff's business is called Freedom Books and his Web site is www.paynoincometax.com. His telephone number is 1 (800) PAY-NOMO(RE).

     About a year ago, Swan also initiated a petition drive exposing the fraud of the Federal Income Tax. The basis for the petition drive is the fact that in the late 1800's and early 1900's (subsequent to the Industrial Revolution in this country), there were many wealthy industrialists who were earning massive amounts of money, but because there was no Income Tax at that time, they were paying very little in taxes to the federal government. So there was a huge groundswell in this country to amend the Constitution in order to allow the Government to impose an Income Tax on the earnings of these wealthy industrialists. 

     On his Web site, Swan has documented a tremendous amount of testimony from the Congressional Record of U.S. Senators and Congressmen who were in favor of amending the Constitution in order to impose an Income Tax on these wealthy industrialists. And it is clearly evident from this testimony that the wealthy were the only Americans who would be subject to the tax. 

    It is Swan's contention that, if the evidence clearly shows that the original intent of the Sixteenth Amendment was only to authorize the federal government to impose an Income Tax on the earnings of the wealthy, and that the Sixteenth Amendment has never been modified since it was first adopted in 1913, then the earnings of the wealthy are still the only items which should be subject to the Federal Income Tax today. However, it is Swan's belief that over time Congress has fraudulently expanded the Federal Income Tax so that it is now imposed on virtually every American person and business in this country.

    Think about it. No matter what stage of history you examine, most people have probably felt as though they paid too much in taxes to the Government as it was. It is inconceivable that the people of the United States would want to impose a new tax upon themselves, this time upon their income. And it is even more inconceivable that these people would rise up and expend the time and effort to amend the Constitution in order to do so. But what is conceivable is that the people would rise up and amend the Constitution in order to impose an Income Tax on the earnings of the wealthy. And if the testimony in the Congressional Record from the U.S. Senators and Congressmen can be believed, this is exactly what the people did.

    A few months ago, Swan filed a federal lawsuit against the Government citing this fraudulent expansion of the Federal Income Tax. His lawsuit may have led to the raid of his home and office. Swan's lawsuit was dismissed by the U.S. District Court in Concord, New Hampshire and is now on appeal at the First Circuit Court of Appeals in Boston. One of the items seized by the IRS was all of Swan's records concerning his current lawsuit against the Government. Swan doesn't believe that it is fair for the Government to seize all of his records concerning his current litigation against the Government and he will be asking the IRS to return those records to him.

     During the search of his home and office, Swan was given a letter from the Justice Department stating that he was being investigated by a federal grand jury to determine whether or not he had committed any crimes. The letter also invited Swan to testify before the grand jury if he so desired. Swan is extremely pleased that he will be able to present his evidence to the grand jury showing that the Federal Income Tax has been fraudulently expanded beyond the original intent of the Sixteenth Amendment.

     Swan estimates that there are approximately 1 million Americans who have stopped paying Federal Income Taxes using Irwin Schiff's material. And these people do file tax returns, which includes an attachment explaining why the Federal Income Tax is a fraud. Some of these people have been filing these "Zero Returns" for up to 10 years and not one person who has been filing them has been prosecuted. And many of them have even received refunds from the IRS.

     Swan believes that no one who has been filing Zero Returns all of these years has been prosecuted because the Government is very cautious as to who it targets. Over the years the Government has lost some very high-profile Income Tax cases so it doesn't prosecute anyone unless it believes it has a virtually guaranteed win. Remember that a U.S. Attorney is a Presidential appointment and he usually only holds office during the term of that President. Many U.S. Attorneys use their temporary position as a stepping stone to a higher office, either a federal judgeship, election to Congress, a governorship, or for greater recognition after they go into private practice. They are in office to get as many convictions as they can and they will avoid any cases that they might not win.

    Even though there are many people who have been filing Zero Returns for many years, Swan says that it has been very difficult disseminating this information to the general public. One of the reasons is because the Government doesn't want this information coming out in open court where a person's guilt or innocence will be decided by a jury of 12 common citizens and in full view of the news media. This is why no one who has been filing Zero Returns for all of these years has been prosecuted.

    Another reason why this information is so difficult to disseminate to the general public is because the Income Tax return preparation industry has become so large in this country. Consider how many people make a living preparing tax returns for a tax which virtually no one understands. There are millions of tax attorneys, CPA's, accountants, H&R Block's and regular tax return preparers. Even the IRS itself is wrong 50 percent of the time when asked questions by taxpayers. 

    And because these Income Tax Return preparers spend a tremendous amount of money advertising their services, the media is reluctant to run advertisements for someone like Swan who has been attempting to expose the Federal Income Tax as a fraud. For the past 4 years, the statewide newspaper in Swan's area has refused to run his ads for his anti-Income Tax seminars, even though they did run his ads when he first started conducting his seminars years ago. The Income Tax return preparers don't want to see ads stating that the Income Tax is a fraud so this information doesn't get out. And because the news media doesn't want to alienate this large industry, it also doesn't print any stories about the many people who are attempting to expose the fraud of the Federal Income Tax.

    Another reason why this information is so difficult to disseminate is because of the negligence of the legal profession. Either directly or indirectly, many lawyers earn their living through the Income Tax so they do not want to see it being exposed as a fraud. Some of these lawyers earn their money directly as tax attorneys, but many more earn their money indirectly such as lawyers who assist people in setting up corporations for tax purposes. And if someone cannot pay their Income Taxes, many times they hire a lawyer to assist them in filing for bankruptcy. And many couples who cannot pay their Income Taxes end up getting divorced, which makes more work for divorce attorneys. So the legal profession has a vested interest in keeping the Income Tax around. If lawyers were really doing their job, why have so many people been convicted for Income Tax evasion? If the Fifth Amendment to the Constitution states that a person has a right not to be a witness against himself, why does the legal profession allow a person's tax return go into evidence? Because the legal profession is complicit in the fraud, that's why.

    And many federal judges feel as though it is their duty as federal employees to collect taxes for the Government. So they dismiss civil lawsuits against the Government on these grounds as Swan's recent lawsuit was dismissed. And pity the poor lawyer who attempts to go against the Establishment and make these arguments in court. The federal judges rule against them in many of their cases and try to put them out of business. And their fellow attorneys and the Bar Associations advise them that it is not good for business to make waves. It is really the legal profession more than anything else which has allowed the fraudulent Federal Income Tax to proliferate and flourish.

    And don't attempt to make these arguments to your U.S. Senators and Congressmen. The Federal Income Tax brings in approximately $1 trillion per year into the federal coffers, which Congress can then allocate to their pet projects in order to get themselves re-elected. Does anyone really believe that Congress would like to see the fraud of the Federal Income Tax exposed? Not to mention the fact that it is Congress who has allowed the Federal Income Tax to be expanded beyond the original intent of the Sixteenth Amendment in the first place.

    At many of his anti-Income Tax seminars and on the 3-hour videotape of his seminar, Swan has bemoaned the fact that this information is so difficult to disseminate to the general public. He has even stated many times that as strange as it might seem, he would really enjoy being indicted by a federal grand jury so that he could get this information out in the open. At long last, it seems as though Swan might get his wish. If the letter from the Justice Department is accurate, at least he will be able to present his evidence to a federal grand jury and put it in their hands. New Hampshire might just be the place where the hated Federal Income Tax meets its much deserved demise.

From: Steven Swan [mailto:stevenswan@earthlink.net]
Sent: Thursday, January 10, 2002 11:28 AM
To: (redacted)
Subject: Correction to Earlier Press Release

For Immediate Release: January 10, 2002

Contact: Steven A. Swan, P.O. Box 453, Auburn, NH 03032 (603) 483-0550

Auburn, N.H. I would like to correct a Press Release I issued earlier today in which I stated that a raid was conducted at my home and office on January 9, 2002 by 15-20 armed IRS Special Agents pursuant to a federal grand jury investigation.

    The first line of the letter which was hand-delivered to me from the U.S. Department of Justice states "The United States Department of Justice is conducting a grand jury investigation in the United States District Court in the District of New Hampshire. The grand jury is investigating criminal violations of federal law, including . . ." Further on the letter states, "You are the target of this grand jury investigation." And further on still the letter states, "You are hereby invited to appear before the grand jury at the United States Courthouse, in Concord, New Hampshire about the matters under investigation."

    So first thing this morning I telephoned the U.S. Attorney's Office in New Hampshire and said that I would be delighted to testify before the federal grand jury. The Assistant U.S. Attorney I spoke with told me that a grand jury would have to be assembled first and then I would be advised as to when I could testify. I asked the AUSA if he could give me a general idea of what time frame we were looking at and he told me that he couldn't. I asked "A month? Two months?" He said "I really can't say." I asked, "Within a year?" and he said "I hope so."

    Then it hit me that I am not currently the target of a federal grand jury at all. The first line of the letter says, "The United States Department of Justice is conducting a grand jury investigation . . ." But this is only a grand jury investigation if the Justice Department decides to bring it before a grand jury, a grand jury which doesn't even exist yet. As it stands right now, it is merely a fishing expedition by the Justice Department couched as a federal grand jury investigation.

    The letter I received from the Justice Department is extremely misleading and disingenuous in that it states that a federal grand jury is investigating me. What did I say in my earlier press release about U.S. Attorneys doing and saying anything in order to win a case? It seems that even the very first letter I received from the Justice Department is based upon a lie. I guess that I shall have to take this as a forewarning of even more dirty tricks yet to come from the "Justice" Department.

Steven A. Swan

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