America: Freedom To Fascism - Federal Income Tax Issues and Interviews in The Film

Federal Income Tax Issues and Interviews in The Film

Through interviews with various individuals including former IRS agents, Russo sets forth the tax protester argument that, "there is no law requiring an income tax", and that the personal income tax is illegally enforced to support the activities of the Federal Reserve System.

One of the listed stars of the film, Irwin Schiff, was sentenced on February 24, 2006 to 13 years and 7 months in prison for tax evasion and ordered to pay over $4.2 million in restitution. In pre-sentencing documents filed with the court, Schiff's lawyers had argued that he had a mental disorder related to his beliefs about taxation. Initially, the film portrays Schiff as a tax expert, though his qualifications and those of many other individuals in the film are not mentioned. Later in the film, Russo reveals that Schiff has been imprisoned.

Schiff appears in the film for another reason as well. The filmmaker lampoons Judge Kent Dawson's reaction to Schiff's defense. The film alleges that the judge "denied Irwin the ability to prove to a jury that there was no law requiring Americans to file an income tax return. He denied Irwin the right to attempt to prove to a jury there was no law . . . by stating, 'I will not allow the law in my courtroom.'" At 0:48:28 of the film, Russo introduces the judge and his statement.

Under the U.S. legal system, the general rule is that neither side in a civil or criminal case is allowed to try to prove to the jury what the law is. For example, in a murder case the defendant is not generally allowed to persuade the jury that there is no law against murder, or to try to interpret the law for the jury. Likewise, the prosecution is not allowed to try to persuade the jury about what the law is, or how it should be interpreted. Disagreements about what the law is are argued by both sides before the judge, who then makes a ruling. Prior to jury deliberations, the judge, and only the judge, instructs the jury on the law.

Another listed star, Vernice Kuglin, was acquitted in her criminal trial for tax evasion in August 2003. This means she was not found guilty of a willful intent to evade income taxes. (A conviction for tax evasion requires, among other things, proof by the government that the defendant engaged in one or more affirmative acts of misleading the government or of hiding income.) Kuglin's acquittal did not relieve her of liability for the taxes. Kuglin entered a settlement with the government in 2004 in which she agreed to pay over $500,000 in taxes and penalties. On April 30, 2007, the Memphis Daily News reported that Kuglin's Federal tax problems continued with the filing of a notice of Federal tax lien in the amount of $188,025. The Memphis newspaper also stated that Kuglin has "given up her fight against paying taxes, according to a Sept. 10, 2004, Commercial Appeal story."

The preview clip for the film includes assertions contradicted by official government publications regarding the activities and nature of such institutions as the Internal Revenue Service and the Federal Reserve System.