A copy of the indictment, filed in U.S. District Court in Ocala, Florida, can be found below. According to the indictment, Snipes, 44, conspired with Eddie Ray Kahn and former certified public accountant Douglas Rosile in the tax scam. Kahn is the founder of a Florida company (now known as Guiding Light of God Ministries) that, investigators allege, "promoted and sold fraudulent tax schemes" to clients like Snipes. Kahn has claimed that U.S. citizens could only be taxed on income earned from certain foreign-based activities (and not on money made in this country). This claim--known as the "861 argument" for the section of the tax code to which it refers--has been flatly rejected by the Internal Revenue Service.
http://www.thesmokinggun.com/archive...61snipes1.html
As a former tax prosecutor agent, I was always amazed at how many people tried to argue that the government had no right to tax them.