Feds After Fort Worth Tax Man

The U.S. Justice Department has filed a lawsuit to stop a Cowtown resident from preparing federal tax returns for others. The Houston Chronicle says that the Feds are accusing Phillip M. Ballard of preparing tax returns showing zeros on all lines. Ballard claims that his customers aren't subject to federal income taxes because they are citizens of their states, not the United States. 'Course, with zero income, his clients wind up owing zero tax.

The government also alleges that Ballard falsely claims to be an attorney, and asks that he be stopped from selling "insurance" promising to protect customers from taxes, penalties and interest.

If you've engaged the services of Ballard's firm, Asset & IRS Shield Inc., you have reason to worry. In addition to asking the court to order him to stop representing his customers before the IRS, the government also wants a list of the names, contact information, and Social Security numbers of his customers.