Fox News says loss in $1.6 billion defamation case would harm all media : NPR

Fox News says loss in .6 billion defamation case would harm all media : NPR

Posters bearing the images of Bret Baier, Martha MacCallum, Tucker Carlson, Laura Ingraham and Sean Hannity, from left, adorn the front of Fox Corp.’s headquarters in New York City. The stars’ panic as viewers fled after the 2020 elections has become a core element of a $1.6 billion defamation suit against Fox.

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Posters bearing the images of Bret Baier, Martha MacCallum, Tucker Carlson, Laura Ingraham and Sean Hannity, from left, adorn the front of Fox Corp.’s headquarters in New York City. The stars’ panic as viewers fled after the 2020 elections has become a core element of a $1.6 billion defamation suit against Fox.

Drew Angerer/Getty Images

Outside legal observers say the Fox News Channel finds itself in real legal jeopardy in a $1.6 billion defamation lawsuit brought by an election tech company over lies broadcast about the 2020 presidential race.

The amount and weight of evidence is perhaps without equal among other major, recent defamation cases.

“How often do you get ‘smoking gun’ emails that show, first, that persons responsible for the editorial content knew that the accusation was false, and also convincing emails that show the reason Fox reported this was for its own mercenary interests?” says Rutgers University law professor Ronald Chen, an authority on constitutional and media law.

Fox News has endured one humiliation after another from the rolling revelations in the case brought by Dominion Voting Systems. Private communications made public in legal filings demonstrate the network’s producers, stars and executives — even controlling owner Rupert Murdoch — knew the claims they were broadcasting were false, and at times unhinged. A trial in the case is slated for next month.

Fox attorney: “We don’t suppress the speech that we don’t think is right”

Fox’s legal team is grounding much of its defense in a claim that it was merely reporting allegations by the most newsworthy public official of all, then-President Donald Trump.

“We err on the side of speech because the more and more speech you have, the better chance of having people actually getting the opportunity to point out what’s right and what’s wrong,” attorney Erin Murphy, one of the senior figures on Fox’s defense team, tells NPR in an interview. “And that’s why we don’t suppress the speech that we don’t think is right.”

A loss for Fox would make it harder for all journalists to serve the public, she says.

“At the end of the day, it’s going to hinder the ultimate objective of the First Amendment, of getting to the truth,” Murphy argues.

The case may serve as a test for the elasticity of that argument.

Dominion alleges great reputational harm from false accusations

Fox News was the first major television outlet to project that then-Democratic nominee Joe Biden would win Arizona on election night 2020, which all but put victory out of Trump’s reach. Dominion has alleged that Fox embraced the conspiracy theories about election fraud to try to make up for angering millions of pro-Trump viewers with the Arizona call. Many peeled away to other right-wing outlets.

In the ensuing weeks, Fox repeatedly invited Trump ally and attorney Sidney Powell on its programs to allege Dominion’s voting systems had switched votes from Trump to Biden. Yet Fox hosts and executives privately dismissed her as unreliable and unhinged. Powell had shared with hosts Lou Dobbs and Maria Bartiromo a memo to justify her allegations. Even the memo’s author called the claims “pretty wackadoodle.”

Top executives, including Murdoch and Fox News CEO Suzanne Scott, told one another they could not bluntly confront their viewers with the facts because that could alienate them further.

Dominion says the baseless claims of fraud have destroyed its reputation for electoral integrity with much of the voting public.

“To simply say Fox is a bunch of liars … is a slippery slope”

Even with that record, set out with voluminous documentation, some media lawyers say Fox’s attorneys may be right in predicting that a loss would constrict the media’s freedoms.

“No matter how much I might personally deplore what Fox is alleged to have done, I worry a lot more about the longer term-ramifications,” says University of Minnesota media law professor Jane Kirtley, a former executive director of the Reporters Committee for Freedom of the Press.

“To simply say Fox is a bunch of liars — that they shouldn’t be allowed to get away with this and their wild speculations should not be reported and should not be protected — I just think that that is a slippery slope,” says Kirtley.

Were Fox to lose, “there would be a scramble by other news organizations to distance themselves from Fox’s techniques and Fox’s editorial decisions,” Kirtley says. “But the problem is that by lifting the veil on the editorial decision-making process, we are now going to see all news organizations called into question going forward.” She says she believes such a verdict finding Fox liable for defamation would encourage more such cases.

Dominion’s legal team shared a statement stating that the voting tech company believes in the First Amendment and its protections, but that Fox crossed a line after the 2020 election: “As long-settled law makes clear, the First Amendment does not shield broadcasters that knowingly or recklessly spread lies.”

It’s hard for plaintiffs to win defamation suits but that could change

Media outlets rarely lose defamation cases in court. Under a 1964 U.S. Supreme Court decision involving the New York Times, plaintiffs have to prove the claims made about them were false and damaging to their reputation. Additionally, they have to prove that those making the statements in question either knew the assertions were untrue or had good reason to know they were untrue, and willfully ignored that information. That’s known as “actual malice,” under the late Justice William Brennan’s decision.

Brennan also argued Americans should have latitude to get some things wrong in talking about public officials and politics, in order to ensure free and robust debate.

Two current Supreme Court justices, Neil Gorsuch and Clarence Thomas, have indicated they would be open to making it easier for plaintiffs to prevail in defamation suits. A third, Elena Kagan, published her own musings years before she joined the court that the protections for the press might be too strong.

The idea of “actual malice,” Murphy says, requires Dominion to prove specific people directly involved with the broadcasts knew the statements they aired were wrong. For instance, Murdoch’s sworn statements that he had dismissed the claims of election fraud as bogus, and affirmed under oath that some of his star hosts had nonetheless endorsed them publicly, carries no legal weight, she says.

“Anybody would have to acknowledge that what the president and his lawyers were doing was newsworthy in and of itself, regardless of whether the allegations were ultimately going to be anything they could prove,” Murphy says. She invoked what journalists consider the safe ground of “neutral reporting” — just telling their audiences what others are saying.

Law professor: The financial motives to present lies “probably destroy” Fox’s defense

In its legal briefs, Fox leans heavily on the idea that news organizations must be allowed to convey allegations by major public figures to their audiences — even wild allegations. Rutgers’ Chen says that doesn’t hold up if Fox was motivated by profit instead of the newsworthiness of the claims being presented in its programs.

“The fact that there was arguably a motive by Fox to publish these accusations against Dominion based on its own economic interests in retaining Trump viewers would, if believed by the jury, probably destroy that argument,” Chen says.

He’s not the only legal scholar skeptical of Fox’s argument that a loss would ripple through journalism.

“Even if Dominion makes their case and convinces a jury to shovel truckloads of Fox’s money to [the election tech company], nothing in this case presents a meaningful threat to the First Amendment,” says Charles Glasser, who was global media counsel for Bloomberg News for 14 years and now teaches journalism and media law at New York University. “It really comes down to the facts about how the story was crafted and disseminated.”

In his sworn responses to questioning from Dominion attorney Justin Nelson, Fox Corp. boss Murdoch acknowledged that four of his star hosts — Dobbs, Bartiromo, Jeanine Pirro and Sean Hannity — had endorsed the baseless claims of election fraud, at least “a bit” in the case of Hannity. He referred to them as commentators. Opinions have even more latitude under case law than straight-ahead reporting. (Dobbs left his post at Fox Business Network a day after a second election tech company, Smartmatic, filed its own $2.7 billion defamation suit against Fox. That case is not as far along as Dominion’s.)

Yet Fox News anchors Bret Baier and Martha MacCallum also were deeply concerned about the loss of viewers and deliberated about how to win them back, evidence uncovered by Dominion’s attorneys and separate reporting by the New York Times‘ Peter Baker show.

Legendary media lawyer sees Fox News case as “bizarre” exception to the norm

When news outlets do lose defamation cases, they often result in retractions or apologies and settlements while they’re still on appeal. The two most prominent defamation cases of recent years resulted in divergent outcomes.

In 2017, Rolling Stone magazine settled separate cases filed by a University of Virginia dean and a campus fraternity after a collapse of standards in reporting on what turned out to be a source’s fabricated account of campus rape.

A year ago, the New York Times prevailed against former Alaska Gov. Sarah Palin after an editorial wrongly linked her advertisements from her political action committee to a mass shooting months later.

“Generally speaking, it is not a good idea to permit a wholesale inquiry into newsroom decisions as a whole, and also I include ownership as part of that inquiry,” James Goodale, the legendary New York Times general counsel who advised the paper to publish the Pentagon Papers, tells NPR in an email. “Newsroom decisions, including ownership decisions as to news judgment, should be protected by the First Amendment.”

Libel and defamation cases override such protections, he notes.

“The Dominion case is such a strange case it provides an exception to the general rule,” Goodale says. “Let us hope we don’t see such a bizarre case as this one again.”

What does the UK government’s bill on illegal migration propose? | Immigration and asylum

What does the UK government’s bill on illegal migration propose? | Immigration and asylum

In 2022, 45,755 guys, women and youngsters crossed the Channel in compact boats to reach the Uk, most of whom then claimed asylum. Approximately 3,000 folks have presently built the crossing this yr, with official estimates expecting much more than 80,000 this 12 months.

Rishi Sunak has promised to stop the smaller boats at the time and for all, by introducing the unlawful migration invoice. Critics such as former Tory ministers have claimed it is doomed to be halted by problems in the EU courts and will be applied as an challenge to attack Labour in a standard election campaign.

How does the invoice match in with existing human legal rights legislation and will it be challenged?

Suella Braverman on Tuesday was not able to verify if the monthly bill is suitable with the European conference on human legal rights. But the government inserted what is known as a area 19(1)(b) assertion into the monthly bill, which indicates that the govt intends to progress.

Alexander Horne, a previous parliamentary attorney, explained these kinds of a assertion as a “big purple flashing light”. He stated: “Let’s say that this invoice receives on the statute ebook. What you’re eventually performing is declaring, nicely, the domestic courts will concern a declaration of incompatibility indicating that this isn’t suitable with our convention legal rights but for the reason that it is major laws they can not overrule it, they just have to go together with it.

“So it will then go to Strasbourg due to the fact you have fatigued your domestic solutions and you are effectively giving quite powerful signalling to Strasbourg indicating read through the conference in this way or if you really don’t, tonight, you’re setting up a conflict with the Uk.”

Horne mentioned the correct to family life (report 8) was the most probable convention appropriate to be the matter of a obstacle but other folks were being also probable these kinds of as the prohibition of degrading, inhuman procedure (write-up 3).

Charlie Whelton, policy and campaigns officer at Liberty, explained the fact that in the earlier the government had not resorted to 19(1)(b) in the previous “flags up that this will completely without any doubt whatsoever be challenged”.

But there remains the suspicion between attorneys that the govt is environment up a confrontation with “lefty lawyers” and Strasbourg, who they can then blame for failure to put into practice the steps. Horne stated it was remarkably unlikely to be on the statute books in advance of the next election. “If you talk to me, and this isn’t a lawful opinion, it’s fully a sort of political check out, he [Rishi Sunak] is executing this to deliver headlines,” he explained. “I assume the authorities thinks that banging on about Strasbourg is a new model of banging on about Europe.”

What routes are open up to these looking for asylum in the British isles?

Braverman’s aides have reported that the bill leaves the way open to a new “global route” administered by the UNHCR.

Specifics keep on being scarce, but Braverman instructed MPs that an once-a-year cap, to be established by parliament, on the selection of refugees the United kingdom will resettle via safe and sound and authorized routes will be established “once we’ve stopped the boats”. “This will assure an orderly program, taking into consideration area authority potential for housing, community expert services, and support,” she explained.

To use for asylum in the Uk, applicants have to be physically in the region under the recent procedure.

In 2022, 1,185 refugees ended up resettled to the United kingdom – 75{c024931d10daf6b71b41321fa9ba9cd89123fb34a4039ac9f079a256e3c1e6e8} fewer than in 2019. Only 22 refugees arrived to the British isles on the Afghan citizens resettlement scheme. There were being also 4,473 refugee household reunion visas issued, down 40{c024931d10daf6b71b41321fa9ba9cd89123fb34a4039ac9f079a256e3c1e6e8} on pre-Covid ranges.

In comparison, in the last 12 months a lot more than 210,000 visas have been issued to men and women from Ukraine to journey to the United kingdom. There are no Ukrainians recorded as acquiring crossed the channel in a tiny boat.

Where would all those who appear by boat be detained?

The new legislation states that everybody who arrives in the Uk by means of an irregular route – ie by means of tiny boats throughout the Channel or in the again of a lorry – will be detained for 28 times. The House Place of work is predicted to buy two former RAF bases in Lincolnshire and Essex, the Situations has claimed.

But two new bases will not cope with the numbers of individuals who would be detained in the United kingdom if this monthly bill is enacted. At the moment, persons can be detained within just the immigration process for the functions of identification or when it is going to be doable to take away them in a sensible timeframe.

In 2022, a overall of 20,446 people were detained at some stage. Formal statistics present that 47{c024931d10daf6b71b41321fa9ba9cd89123fb34a4039ac9f079a256e3c1e6e8} had been detained for seven times or fewer. The present detention ability in the British isles is about 2,286, in accordance to estimates by the Refugee Council, so detaining anyone crossing in a little boat for 28 days would demand excess ability.

It would also be extremely high priced – it fees about £120 to detain an individual for 1 day so detaining 65,000 individuals for 28 days would expense £219m a calendar year, and that is ahead of the further fees of developing more detention centres.

Wherever would they be sent by the govt less than the new guidelines?

The invoice, if enacted, will mean that any individual who comes on a tiny boat will have their asylum declare deemed “inadmissible” – the House Place of work will not even think about someone’s assert, even if they’re from a war-torn country these as Afghanistan or Syria or if they facial area persecution such as gals from Iran.

Instead, all those men and women will be eradicated both to their very own region or a “safe third country” if that is not possible. What has not been answered however is the place the tens of thousands of individuals who cross the Channel will be sent.

50 percent of the men and women who crossed the channel final year arrived from Afghanistan, Eritrea, Iran, Sudan or Syria. At the very least 80{c024931d10daf6b71b41321fa9ba9cd89123fb34a4039ac9f079a256e3c1e6e8} of asylum promises from those international locations are at this time granted. For Afghanistan, Eritrea and Syria the figure is 98{c024931d10daf6b71b41321fa9ba9cd89123fb34a4039ac9f079a256e3c1e6e8}.

Govt aides say that at existing, they prepare to ship a greater part of those people arriving by tiny boat to Rwanda, even though that scheme is staying challenged in the courts. But even if it does start off, it is only envisioned that about 200 people today will be able to be transferred. There are no returns bargains with France or the EU because the British isles still left the European Union.

What would materialize to those people people who just can’t be eradicated?

The present method, which was introduced two several years in the past, states that a person’s asylum assert can only be deemed inadmissible if they could have or did claim asylum in one more area, and the Residence Business has been equipped to safe their elimination to a further country.

Of the 12,286 times the Household Office has tried out to deem a claim inadmissible via that procedure, they’ve only been able to create inadmissibility 83 situations. That is a “success” amount of just .7{c024931d10daf6b71b41321fa9ba9cd89123fb34a4039ac9f079a256e3c1e6e8}.

If 65,000 people had been to cross the channel once this new legislation was in put and all their promises had been deemed inadmissible, that could mean 455 folks would be eradicated on their latest track history, according to figures from the Refugee Council.

That would go away 64,545 men and women stuck in limbo – unable to be taken out, their asylum claims not getting processed in the Uk, unable to operate or entry assist. The authorities has not yet said what would materialize to them.

Federal government aides argue that there will not be 1000’s of people today stuck in limbo for the reason that they predict an immediate fall in the figures crossing the Channel if folks are quickly taken out.

In a Rare Decision On Abandoned Property Law, The US Supreme Court Rules Against Delaware

In a Rare Decision On Abandoned Property Law, The US Supreme Court Rules Against Delaware

On February 28, 2023, the US Supreme Court docket issued its final decision in the abandoned home lawsuit, Delaware v. Pennsylvania (see https://www.supremecourt.gov/thoughts/22pdf/145orig_kjfl.pdf)

The concern dealt with by the Courtroom centered on which state was entitled to accumulate unclaimed home, which arose from  two money products marketed by banking institutions on behalf of Moneygram: Agent Checks and Teller’s Checks (collectively, the “Checks”).

Next the framework founded in the seminal scenario of Texas v. New Jersey, 379 U. S. 674 (1965), since Moneygram did not have the name and tackle of the homeowners of the Checks, Moneygram experienced been escheating (that is, having to pay in excess of to the state) the money fundamental these dormant Checks to its point out of incorporation, Delaware. 

That rule, paying unclaimed house to the point out of incorporation in occasions the place the identify and deal with of the individual residence owner is not regarded, broadly applies to most residence, apart from for dollars orders and tourists checks.   This exception occurs from a 1974 federal regulation, the Federal Disposition Act (“FDA”), 12 USC  § 2501 et seq), which involves holders of money underlying unused funds orders and vacationers checks (and other identical instruments) to remit these funds to the point out in which the instruments ended up procured, not the holder’s point out of incorporation.

For that reason, the Supreme Courtroom centered on  no matter whether the Checks should be subject to the Texas v. New Jersey framework or regardless of whether they had been similar adequate to income orders so that they, also, as soon as deserted, really should be paid out to the point out where ordered and not the point out of incorporation. 

The Supreme Courtroom held, in the first the vast majority impression penned by new Supreme Courtroom Justice Ketanji Brown Jackson, that the Checks were being in fact similar to revenue orders, and should be escheated to the point out of acquire below the Food and drug administration, and not the condition of incorporation:

When a money solution operates like a dollars order— i.e., when it is a prepaid prepared instrument employed to transmit cash to a named payee—and when it would also escheat inequitably entirely to the Condition of incorporation of the business keeping the funds below our popular-law policies because of to recordkeeping gaps, then it is sufficiently “similar” to a dollars buy to slide presumptively inside the Food and drug administration.  (598 U.S. __ slip op. at 22)

This is viewed as a much more equitable rule, allowing for the assets to be dispersed among a number of states where the industrial exercise happened.

There was a large total of revenue at stake: some estimate Delaware will owe far more than $400 million to the other states based mostly on the outcome in this lawsuit.

The bigger concern is regardless of whether, now that the definition of “money orders” (and related instruments) below the Fda has been widened to include the Checks, will other financial solutions and devices also be topic to a identical resolve?  We foresee that lots of states will be using a closer appear at “prepaid created devices used to transmit money” in order to maximize their deserted assets collections.

Expert Austin Accident Lawyer Andrew Traub Expands Traumatic Brain Injury (TBI) Attorney Legal Services to Leander, Cedar Park, Round Rock Texas; Lyft & Uber Rideshare Auto Accident Legal Services

Expert Austin Accident Lawyer Andrew Traub Expands Traumatic Brain Injury (TBI) Attorney Legal Services to Leander, Cedar Park, Round Rock Texas; Lyft & Uber Rideshare Auto Accident Legal Services

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Posts Mislead on Legal Basis for Paying Federal Income Taxes

Posts Mislead on Legal Basis for Paying Federal Income Taxes

Quick Take

The U.S. Constitution established Congress’ right to impose federal income taxes, and the Internal Revenue Service administers the laws that require payment of taxes. Yet social media posts falsely claim there is no law that requires U.S. residents to pay taxes.


Full Story 

When it was ratified in 1788, the U.S. Constitution gave Congress the power to establish and collect taxes in Article 1, Section 8, Clause 1.

It says, “The Congress shall have Power to lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States.”

In response to a Supreme Court ruling in 1895, Congress proposed the 16th Amendment to the Constitution in 1909 to clarify its right to impose a federal income tax. The states ratified the amendment in 1913.

“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration,” the amendment reads. 

The federal tax laws were compiled in 1939 into the Internal Revenue Code, which was revised in 1954 and 1986. The Internal Revenue Service administers the tax laws in the code.

But as the annual income tax deadline draws closer, posts on social media spread the false claim that there is no law that binds citizens to pay income taxes. 

A viral TikTok video shared on Feb. 15 features clips from “America: Freedom to Fascism,” a 2006 film by Aaron Russo that claims there is no law that requires citizens to pay federal income taxes.

In the roughly seven-minute TikTok video, several individuals who are identified as IRS agents or attorneys say they searched for a law that made a person liable to pay taxes and did not find one. The TikTok received more than 40,000 likes and 11,000 shares.  

The first individual in the clip — identified as a tax attorney named Peter Gibbons — misleadingly says that in 1894 and 1913 the Supreme Court ruled it was unconstitutional for Congress to enact an income tax. “There is no constitutional basis for a tax on the wages of Americans,” Gibbons claims.

A Feb. 26 post on Facebook shared the TikTok video with the caption, “If there’s no law that binds us to paying taxes. The question I have is, why are we?” The post was shared more than 2,000 times. 

But the claim that there’s no law requiring citizens to pay taxes is false.

Allen Madison, a professor of federal tax law at the University of South Dakota, told us in an email that the information in the social media posts is false, not helpful to American citizens and wastes the government’s resources.

“Mr. Gibbons is speaking of real cases but knowingly and blatantly misrepresenting them,” Madison said. “He suggests that the Supreme Court held that the federal government has no right to impose tax on individuals. He is wrong.”

Amendment Nullified Court Ruling

The 16th Amendment was passed after the 1895 Supreme Court decision in Pollock v. Farmers’ Loan & Trust Co. 

In order to comply with the Wilson-Gorman Tariff Act of 1894, which created a 2{c024931d10daf6b71b41321fa9ba9cd89123fb34a4039ac9f079a256e3c1e6e8} tax on incomes of at least $4,000, the Farmers’ Loan & Trust Company informed stockholders that it planned to pay federal taxes on its profits, including income derived from its real estate holdings. Charles Pollock, a company shareholder, sued the company in a lawsuit that went all the way to the Supreme Court.

The high court acknowledged Congress had a right to impose a “direct” income tax, but held that the tax on property was unconstitutional because it wasn’t “levied by the rule of apportionment” — meaning states should be equally taxed based on population, as required by the Constitution.

Pollock invalidated the tax on property as the Supreme Court was persuaded that the tax on property violated the apportionment requirement. Contrary to what Mr. Gibbons implies, the Supreme Court in Pollock did not invalidate the income tax on individuals on moral, apportionment, or any other grounds,” Madison said.

The 16th Amendment was ratified to address the court’s decision and allowed Congress to impose direct federal income taxes without apportionment.

“In 1913, the 16th Amendment removed the apportionment requirement as it applied to a tax on income. This barrier removal paved the way for Congress to impose an income tax that included individuals and property. That same year, 1913, Congress enacted an income tax that is the direct ancestor of our current income tax. In 1916, the Supreme Court decided Brushaber v. Union PacificBrushaber upheld the constitutionality of the 1913 income tax,” Madison explained.

“Contrary to Mr. Gibbons’ assertions, there is no reasonable legal dispute that this [is] the current state of the law,” Madison added.

Christine Speidel, a law professor at Villanova University and the director of the Federal Tax Clinic, also told us in an email that the social media claims are false. 

“Unfortunately as a tax lawyer, I regularly meet people who don’t believe in taxes. The legal basis for federal taxes is the Constitution, and also the Internal Revenue Code, which is made up of laws passed by Congress,” Speidel said. 

“Essentially, tax protesters take lines from the opinion out of context, and claim that the Supreme Court said the opposite of what it actually held,” Speidel said.

The IRS says in a publication titled “The Truth About Frivolous Tax Arguments” that “numerous courts have both implicitly and explicitly recognized that the Sixteenth Amendment authorizes a non-apportioned direct income tax on United States citizens and that the federal tax laws are valid as applied.”

Referring to the social media posts, Garrett Watson, a senior policy analyst at the Tax Foundation, told us in an email, “These types of arguments are common among tax protestors and have been circulating for decades.”

Watson said the claims have no basis in law. He also directed us to several tax laws in the U.S. Code that show individuals are required to pay income taxes.

“Tax liability is imposed under 26 U.S. Code Chapter 1, which spells out normal taxes and tax liability for individuals and corporations. Other places within the U.S. Code that show a requirement to file and pay income tax are in 26 U.S.C. Section 6012 (filing income tax returns), 26 U.S.C Section 6151 (requirement to pay tax), and defining gross income in 26 U.S.C. Section 61,” Watson said.

“On voluntary tax compliance, tax protestors often misapply the term as used in tax law to mean that one is not legally required to remit taxes,” Watson said.

But that is not what the term voluntary means, Watson said. “Instead, the term means that taxpayers are expected to comply with tax law, but that they do so without the IRS directly compelling them to do so. The alternative misapplication was described by the Tax Court as ‘arrogant sophistry’ in 1984 when this topic was litigated.”

The IRS publication explains the benefit of taxes and what the Constitution and law say about paying taxes. 

“The tax law is found in Title 26 of the United States Code. Section 6012 of the Code makes clear that only individuals whose income falls below a specified level do not have to file returns. While our tax system is based on self-assessment and reporting, compliance with tax laws is mandatory. State citizenship does not negate the applicability of the Code on individuals working and residing in the United States,” the IRS explains. 

“There have always been individuals who argue taxes are illegal,” the IRS publication also says. “They use false, misleading, or unorthodox tax advice to gain followers. The courts have repeatedly rejected their arguments as frivolous and routinely impose penalties for raising such frivolous arguments.”

Penalties for Not Paying Taxes

Steven Fromm, a tax attorney for more than 40 years, told us in an email that tax protesters continue to challenge the federal tax code, even though there is “no basis to claim that taxes are not legal or unconstitutional.” 

“There have been many cases where this has been tried and taxpayers never win such arguments,” Fromm said. “The penalties both monetary and criminal can be quite harsh.”

The IRS says civil and criminal sanctions can apply to those who violate tax laws in a publication titled “Why Do I Have to Pay Taxes?” 

Punishment for not paying taxes can include a 5{c024931d10daf6b71b41321fa9ba9cd89123fb34a4039ac9f079a256e3c1e6e8} penalty charge on the unpaid taxes for each month they are late or a sentence of five years in prison.

“To add insult to injury, some tax protesters often succeed in convincing others to join them in protest,” Madison, the federal tax law professor, wrote in a 2014 paper published in the Thomas Jefferson Law Review.

He noted actor Wesley Snipes was sentenced in 2008 to three years in prison and fined $5 million for failure to file taxes, after being convinced by tax protesters Eddie Ray Kahn and Doug Rosile that he didn’t owe federal taxes because he didn’t earn money from sources in the U.S.

Several people featured in the film “America: Freedom to Fascism” — including Sherry Peel Jackson, Joseph R. Banister and Larken Rose — faced civil or criminal penalties for breaking tax laws.


Editor’s note: FactCheck.org is one of several organizations working with Facebook to debunk misinformation shared on social media. Our previous stories can be found here. Facebook has no control over our editorial content.

Sources

National Constitution Center. “Blame Abraham Lincoln for the nation’s first national Income Tax.” 5 Aug. 2022.  

Britannica. “Pollock v. Farmers’ Loan and Trust Company.” Accessed 1 Mar 2023. 

United States Census Bureau. “Title 26, U.S. Code.” Accessed 1 Mar 2023. 

Internal Revenue Service. “Why Do I Have to Pay Taxes?” Accessed 1 Mar 2023. 

Congress.gov. “Amdt16.2 Historical Background on Sixteenth Amendment.” Accessed 1 Mar 2023. 

National Archives. “16th Amendment to the U.S. Constitution: Federal Income Tax (1913).” Accessed 1 Mar 2023. 

America: Freedom to Fascism.” IMDb. Accessed 1 Mar 2023. 

Steven J. Fromm. Steven J. Fromm & Associates. Email interview with FactCheck.org. 28 Feb 2023.

Garrett Watson. Senior policy analyst, Tax Foundation. Email interview with FactCheck.org. 3 Mar 2023.

Allen Madison. Professor of federal tax law, University of South Dakota. Email interview with FactCheck.org. 4 Mar 2023.

Christine Speidel. Law professor and director of the Federal Tax Clinic. Email interview with FactCheck.org. 3 Mar 2023.

Lawyer Attacked With ‘Metal Object’ In Cash Advance Company Fraud Probe

Lawyer Attacked With ‘Metal Object’ In Cash Advance Company Fraud Probe

police tape lakeFinal week, a former Philadelphia Bar chancellor, Gaetan Alfano of Pietragallo Gordon Alfano Bosick & Raspanti, was searching to obtain assets belonging to a funds progress business matter to a $191 million judgment. It is a not-unheard of undertaking for an attorney symbolizing a court docket-appointed receiver. Then, according to authorities, the brother of one particular of the company’s founders attacked Alfano in broad daylight with a steel item. Alfano necessary seven staples to his skull and an MRI scan. Luckily, he’s predicted to return to work shortly.

Prosecutors have charged the brother, James LaForte, with retaliating towards a witness and obstruction.

If that seems like an excessive response for a lending corporation, the report agrees:

Functioning as a supervisor at Par, they say, he threatened tiny small business owners with bodily violence on additional than a person celebration for failing to repay dollars the business had superior them.

The LaFortes’ organization designed its gains by raising billions from buyers and then loaning it out — frequently at significant curiosity fees — to hard cash-strapped more compact providers unable to secure financial loans from traditional banking companies.

You know you can just create onerous contracts and safe liens on people’s house, ideal? It could be a despicable apply, but it is a single with a loaded historical past in this nation. Not that bludgeoning folks doesn’t have a loaded heritage in this state, but it is a background that ordinarily finishes in jail when the other finishes in a seaside estate.

As section of his function, prosecutors said, James LaForte supervised and encouraged Gioe — a entire body builder and reputed mob affiliate of New York’s Gambino crime loved ones — who admitted in courtroom final yr that he’d employed mob-style extortion techniques, including threatening to “stick a fork” in the head of one borrower and vowing to cut off the fingers of a further, in an exertion to recoup money owed owed to Par.

All suitable. Perhaps this had by now progressed outside of the place wherever some shady attorneys and predatory contracts have been going to form a workable business enterprise prepare. A broader criminal probe into the company’s dealings carries on. One particular suspects the corporation isn’t heading to fare well in how prosecutors describe this assault.

Attorneys confront horrible violence out there. We typically address family law lawyers getting victims of horrible violence, but this is a reminder that even the mundane task of gathering information and facts for a receiver is not often safe and sound. We want Alfano a fast recovery.

Par Funding founder’s brother charged with attacking lawyer investigating firm belongings [Philadelphia Inquirer]


HeadshotJoe Patrice is a senior editor at Higher than the Law and co-host of Contemplating Like A Lawyer. Truly feel no cost to email any strategies, issues, or comments. Abide by him on Twitter if you are intrigued in regulation, politics, and a wholesome dose of college sporting activities news. Joe also serves as a Managing Director at RPN Government Look for.