Dan Pilla Exposed
The December 13, 1999 issue of "The Spotlight" a weekly tabloid emanating from Washington, D.C., featured an article which contained an attack on Irwin Schiff by Dan Pilla a supposed expert on the federal income tax.. On December 14, 1999 Mr. Schiff sent the following letter to "Spotlight" in response to that article.
444 East Sahara
Las Vegas, NV 89104
300 Independence Ave. S.E.
Washington, D.C. 20003
Dan Pilla Exposed
The following was contained in a letter I sent to "The Spotlight," a weekly tabloid emanating from Washington, D.C., on December 14, 1999 in response to an attack on me by Dan Pilla which was published in the December 13, 1999 issue of that paper.
To the Editor:
I don't have the time to fully address all of the misleading and erroneous statements made about me and the Federal income tax that appeared in your December 13, 1999 issue.
In that article Dan Pilla states that "Back in 1979 the IRS produced a manual that talked about how to deal with tax protesters. That's when Irwin Schiff was first coming on the scene." Actually I came "on the scene" in 1976 with the publication by Arlington House of my book
"The Biggest Con: How the Government is Fleecing
You," which became a Conservative Book Club selection and went on to sell over 100,000 copies in soft and hard cover.
That book explained, among other things, how some Americans were avoiding the payment of income taxes. They were doing so by filing 5th Amendment returns (giving the IRS no personal or financial information) first developed by Arthur Porth the actual founder of the modern income tax revolt, and subsequently promoted by such early activists, as Marvin Cooley, Bill Drexler, Renee Baxter, Jerome Daly , Claire Kelley, Von Ellsworth, Jim Scott and others.
The 5th Amendment return was coupled with the "money argument, which involved the claim that since we were not paid in gold or silver we actually had no "income" to report. I am sure that Dan Pilla's father (Dan Pilla Sr.) filed 5th Amendment returns and used the "money argument" long before 1979.
I was the principal speaker at the "Tax Strike Convention" held in Denver in 1976 where I discussed both of these strategies to an audience of over 200. I filed 5th Amendment returns in 1974, 1975 and 1976 and was subsequently illegally, prosecuted, (as were Arthur Porth, Von Ellsworth, Marvin Cooley and many others) for having done so.
So Dan Pilla's claim that "when (Schiff) first came on the scene he was telling people that they didn't have to file tax returns at all" is, like most of Dan Pilla's claims, inaccurate.
Subsequently, I concluded that no law required anyone to …pay income taxes or file income tax returns…., so I stopped filing altogether and explained why in "How Anyone Can Stop Paying Income Taxes," published in 1982. That book sold about 200,000 copies and became a "best seller," and it was that book that actually ignited the tax resistance movement, as we know it today.
Others such as Marvin Cooley continued to file and promote 5th Amendment returns, and Marvin was actually prosecuted three times for doing so, while I was subsequently prosecuted for not filing any returns at all.
As a result of my second conviction in 1985, I was told that I had to file income tax returns as a condition of probation. To satisfy that condition, I developed the "zero" return and I have been filing "zero" returns (and not paying income taxes) ever since - and the Government has left me alone. By filing "zero" returns (with the attachment I developed), untold Americans have received full refunds of all the federal and State income taxes they might have paid.
I have enclosed copies of some of these refund checks while others can be seen on my web site at www.paynoincometax.com. My current book,
"The Federal Mafia How the Government Illegally Imposes and Unlawfully Collects Income
Taxes" explains and shows how to file income tax returns and request refunds for all the income taxes paid for that year. The point is, Code Section 7206(2) of the Internal Revenue Code makes it a crime for anyone to "counsel or advise" people to file false or fraudulent tax refund claims to the government.
So Dan Pilla's statement that "What Schiff's trying to do is to induct people into his army to fight against the income tax on the pretense that what the people in that army are doing is legal and the IRS can't do anything about it" is total nonsense. If getting refunds for people by showing them how to file "zero" returns were
not legal, I would have been prosecuted long ago by the Government for violating Code Section 7206(2).
Dan Pilla earns his living by misleading the public concerning the legal requirement to pay income taxes. If Dan believes that paying income taxes is required by law, why doesn't he simply cite the law that contains such a "requirement"?
There is nothing tricky about such a request. Section 4401(c), for example, says (in connection with the federal wagering tax paid by bookmakers), "Each person who is engaged in the business of accepting wagers shall be liable for and shall pay the tax under this subchapter."
What statute does Dan claim says that persons having income
"shall be liable for and shall pay the income tax"? One of Dan's "strategies" for allegedly lowering ones income taxes is to keep accurate books, records, and logs.
Section 5114 of the IR Code states in connection with alcohol taxes that "Every dealer in liquors who sells distilled spirits… shall keep daily a record…containing such information etc. etc. etc. " What statute does Dan claim requires Americans to keep books records for income tax purposes? Don't wait for Dan to identify that law either: it doesn't exist.
Dan camouflages his inability to produce laws that require Americans to pay income taxes or keep books and records by continually referring to court decisions, as if judges are authorized to make law.
In your article Dan states, "Show me a ruling from a judge that says, in writing, that your version of the law and your interpretation of the law is correct, and that as a result of your interpretation of the law that you don't have to file a tax return or pay a tax."
For one thing, since all information on a tax return can be used against those who file, any requirement that Americans are "required" to supply such information would be an obvious violation of the 5th Amendment, which is why no law "requires" it. If any judge were to rule otherwise, such a judge would obviously be lying, and if Dan can't figure that out, then there is an obvious defect in his understanding of the Constitution.
Recently Joe Banister (as reported in "Spotlight") resigned from his job, as an IRS Special Agent when he discovered that the head honchos at the IRS and Treasury Department could not identify any law that required Americans to pay income taxes. Does Dan Pilla suggest that Joe Banister doesn't know what he is talking about or that he made the whole thing up?
In referring to Bill Benson, Dan Pilla states that "I will not talk about Bill Benson in the same breath that I talk about Irwin Schiff. Bill Benson is a man of honor," meaning, of course, that I am not. The funny thing about this is that Dan Pilla called me in 1986 seeking my help in getting him on radio talk shows, which he was unable to do.
I put him in touch with Irwin Zucker a publicist in Los Angeles who specialized in doing this. It was Irwin Zucker who was responsible for getting Dan on a number of radio talk shows and it was from that point that his career actually began. Had I not helped Dan in this manner, he would still be languishing in the obscurity from which I rescued him in 1986. So besides being a liar, Dan is also an ingrate.
Irwin A. Schiff