It took the IRS and DOJ a few years, but they finally started getting indictments and convictions against 1099-OID and other scammers who used very clever ways of cheating on the taxes.
Incidentally, you should not take my expressed disdain for the scammers as an indication that I believe they actually owed any income tax because I don't. However, the scammers used an utterly crooked way to get out of paying the tax AND of getting refunds of far more money than they would have deserved with a traditional tax return.
After tolerating years of the scammers' bogus seminars to teach crooked methods and of preparing and filing fraudulent documents, the government got indictments and convictions of the infamous Timothy Turner (of the Restore America Plan scam) and Glen Unger, AKA Dr. Sam Kennedy. Today those scammers live in federal prisons, right where they belong.
And now Winston Shrout will soon join them because the government just won a conviction against him for his own brand of scams. See the articles below.
To all who hate the income tax: beware of preparing or filing false or fraudulent documents in an effort to avoid or evade income tax.
NEW DOCKET ENTRY at end of September 2018:
Minutes of Proceedings: Competency Hearing before Judge Robert E. Jones as to Winston Shrout. Two witnesses sworn and evidence adduced. The Court finds the defendant competent to proceed to sentencing. Sentencing is schedule for October 22, 2018 at 10:00AM before Judge Robert E. Jones. (Note: Sentencing is scheduled for two hours.)Counsel Present for Plaintiff: Stuart Wexler, Lee Langston. Counsel Present for Defendant: Ruben L. Iniguez. (USPO Present: Chris Song, PreTrial) (Court Reporter Jill Jessup) (bp) (Entered: 09/27/2018)