Friday, July 20, 2007

Withholding On The Ropes?

U.S. Unable To Prove It’s Not Voluntary

The United States appears to have bitten off more than it can chew when it sued Bob Schulz and the We The People organizations earlier this year in an effort to shut down "Operation Stop Withholding."

In the lawsuit, the Government accused WTP of operating an unlawful "abusive tax shelter" in violation of IRC Sections 6700 and 6701, citing the organization's efforts to urge individuals to terminate their W-4 wage and salary withholding agreements.

In response to the lawsuit served on Schulz on May 3, 2007, Schulz filed a motion to have the case dismissed on the ground that Operation Stop Withholding is not only fully protected by the First Amendment (including the Petition clause), it is protected because We The People organization is educating People about the withholding laws as they are currently written and which expressly provide that such agreements are voluntary.

Read more here.


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