Following in your father’s footsteps can be a very good thing. However, when you’re following your father into (potentially) prison for tax evasion, that’s not a good thing at all.
Let’s first talk about the father, David Pflum. The elder Mr. Pflum thought he found two very useful books, “The Great Income Tax Hoax” and “How Anyone Can Stop Paying Income Taxes.” Then the IRS got involved. They issued summonses and subpoenas, seeking records showing that Mr. Pflum earned an income and owed income tax. Mr. Pflum was indicted for not filing a federal income tax return (three counts) and not paying federal employment taxes (eight counts). He admitted in court that he didn’t file the taxes. He was found guilty on all 11 counts. He appealed, and lost. Oh, Did I mention that Mr. Pflum followed the advice of Irwin Schiff, who (like Mr. Pflum) is now residing at ClubFed? And, yes, the tax evasion involved the usual suspects—trusts set up specifically to avoid taxes. (Hint: They don’t work.)
We now turn to the son, Gregory Pflum. Mr. Pflum the younger was indicted last year. He was warned by the IRS that not paying taxes doesn’t work. Unfortunately for him, from 1998 through 2003, he didn’t pay taxes. He had the opportunity to file those returns (albeit late, with penalties and interest). Instead, when he was contacted by the IRS he gave the agents tax protester materials.
Mr. Gregory Pflum pleaded guilty to one count of attempting to evade taxes by not filing a return. Though he faces up to five years at ClubFed, he will probably receive a shorter term.
Sometimes, you shouldn’t follow your father’s advice.