Irwin Schiff - Civil Tax Problems For Tax Years 1979 Through 1985

Civil Tax Problems For Tax Years 1979 Through 1985

In June 2004, a Federal court ruled that Schiff was liable for over $2 million in taxes, penalties and interest for the years 1979 through 1985. In that case, Schiff's attorney had filed a brief claiming a diminished capacity defense, contending that Schiff had been diagnosed with a chronic, severe delusional disorder relating to his beliefs about the federal income tax system. This was characterized by some opponents of Schiff's beliefs as a claim that those beliefs were the product of a delusion, or even insanity, and that Schiff had willingly allowed his defense counsel to raise such an argument.

Schiff responded to these claims, stating that the diminished capacity defense was an attempt to prevent the Judge from rendering a summary judgment and instead allow a jury trial. Schiff also asserted that this was different from an insanity defense. Schiff, in his statement on the matter, asserted that the judge erred in not putting this question to the jury, and insisted that "(1) no one is required to pay income taxes; (2) the entire federal judiciary is involved in a monumental, criminal conspiracy to collect income taxes in violation of law." As of November 2006, Schiff continued to state on his internet web site that the U.S. Federal income tax was repealed in the 1950s, and that U.S. officials were engaged in a conspiracy: "Since the income tax was repealed in 1954 when Congress adopted the 1954 Code, it is clear that for 50 years federal judges in conspiracy with U. S. Department of Injustice prosecutors have been illegally and criminally prosecuting people for crimes that do not exist in connection with a tax that nobody owes."