IN THE UNITED STATES DISTRICT COURT
FOR THE MIDDLE DISTRICT OF PENNSYLVANIAUNITED STATES Plaintiff v. THURSTON BELL Defendant CIVIL NO. 1:CV-01-2159 (Judge Conner) Filed Harrisburg, PA January 10, 2003 ORDER AND NOW, this 10th day of January, 2003, in accordance with the accompanying memorandu, it is hereby ORDERED that plaintiffs motion for preliminar injuction (Doc.34) is GRANTED. It is further ORDERED that:
1. Thurston Bell and his representatives, agents, servants, employees, attorneys, and those persons in active concert or participation with him, are preliminarily enjoined from directly or indirectly, by means of false, deceptive, or misleading commercial speech:
a. Organizing, promoting, marketing or selling (or assisting therein) the arrangement known as "the U.S. Sources argument" (also known as "the section 861 argument") or any other abusive tax shelter, plan or arrangement that incites taxpayers to attempt to violate the internal revenue laws or unlawfully evade the assessment or collection of their federal tax liabilities or unlawfully claim improper tax refunds; b. Further engaging in any conduct subject to penalty under 26 U.S.C. § 6700, i.e. making or furnishing, in connection with the organization or sale of an abusive shelter, plan, or arrangement, a statement they know or have reason to know is false or fraudulent as to any material part;
|
c. Further engaging in any conduct subject to penalty under 26 U.S.C. § 6701, i.e. assisting other in the preparation of any tax forms or other documents to be used in connection with any material matter arising under the internal revenue laws and which they know will (if so used) result in the understatement of income tax liability; and d. Further engaging in any conduct that interferes with the administration and enforcement of the internal revenue laws.
2. Bell shall forthwith send a letter to:
a. All persons to whom he gave, sold, or distributed any materials espousing or related to the U.S. Sources argument; b. All persons for whom Bell prepared or assisted in the preparation or drafting of any federal returns or tax-related documents; and c. All persons who contacted Bell regarding the U.S. Sources argument (in paper, via telephone, or through electronic means); and inform those persons of the entry of the court's finding concerning the falsity of Bell's representations, the falsity of the tax returns based in whole or in part on the U.S. Sources argument, the possibility of the impostion of frivolous-return penalties against them, the possibility that the United States may seek to recover any erroneous refund they may have received, and the fact that a preliminary injunction has been entered against Bell (and attach a copy of this Order to the letter); and Bell shall simultaneously serve copies of all such letters (without attacment) to counsel for the United States at the address listed on the docket of the matter;and
3. Bell shall maintain the NITE website (www.nite.org) during the pendency of theis preliminary injunction order, remove from the afformentioned website all abusive-tax-shelter-promotional materials, false commercial speech, and materials designed to incite other to violate the law (including tax laws), and display prominently on the first page of the website an attachment of this prelimary injuction Memorandum and Order. 2
|
4. Bell shall mail to counsel for the United States, at the address listed on the docket of this matter, one copy of every federal tax return, amended return, or other document intended for the IRS that he prepares, or assiswts in the preparaton of, on behalf of any other person or entity during the pendency of this preliminary injunction Order. The mailing shal be made on the same date the document is mailed or filed with the IRS. 5. If Bell requires access to any file in the court's possession in order to comply with this order (e.g. paragraph 2), Bell shall promptly contact the court's deputy clerk, Ms. Kimberly McKinney, at 221-3920 to schedule an appointment for document access. 6. The parties shall file a request for a permanent injuction hearing within thirty (30) days. If no such requiest is filed, the Court will issue an order converting the preliminary injuction to a permanent injuction. ________________________ CHRISTOPHER C. CONNER
United State District Judge
|