Taxpayer Indicted in Florida for Selling "Tax Escape Service"
Carel A. Prater, also known as Chad Prater, was indicted by a Florida Grand Jury a few weeks ago. The charges were based on Mr. Prater's business which was built apparently around the notion that income is not taxable.
He would in support of this, prepare false tax returns and bogus documents for his clients, tell them to conceal assets and income from the IRS by setting up "shell limited liability companies" and "unincorporated business trust organizations", and by transferring ownership of assets to nominees.
In 2002 he was ordered to stop operating his business, and continued anyway.
He was charged as a result with "aiding and assisting in the filing of false tax returns", "failure to file a tax return", "criminal contempt", and "structuring transactions to avoid reporting requirements" among other things and if convicted on all counts, he could face 33 years behind bars and a fine of as much as $1.95 million.
His business was called "New Found Freedom" and it operated in Sarasota as "Tax Escape Service". The irony is abundant.
The point of this blog post is to convey the idea that the IRS does prosecute those who don't pay tax on income. I dislike the IRS as much as anyone, and believe that an income tax is counterproductive.
Having said that, I also believe that the "right to vote" is the best way to combat ill conceived government policy.
If you agree that the income tax system as currently constituted is corrupt and counterproductive...vote.
If you have fallen prey to the notion that the government can't force you to file a return or pay a tax in income and want to re-enter the "system", call me to discuss your options.
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