From the New York Times, concerning a new case in the Sacramento federal court:
[Mr. Thompson's] case illustrates some of the reasons that tax evasion is growing, despite repeated statements by the Internal Revenue Service that it is cracking down on those who deny the legitimacy of the tax laws. The Internet, antigovernment news organizations and dwindling law enforcement resources are all factors in the spread of the tax denial movement.
In the early 90's, I knew several of the principle players in the Pilot Connection, a tax denial organization based in Stockton, CA. Presumably, Mr. Thompson is a member of the Pilot Connection, or a closely-related organization.
What strikes me is that the federal government persists in labeling the activities of these organizations as "tax fraud" rather than what they really are: "political protest." Presumably that is because it is easier to misrepresent the organizations' activities as get-rich-schemes, but someday these convenient lies will collide with reality - perhaps as the tax deniers get high-level (namely Republican) political protection. The tax laws of the U.S. need to be written better - perhaps rewritten entirely - so as to eliminate the little loopholes the tax deniers try to take advantage of (example: the lack of specificity of the term 'United States of America' - the states aren't separately listed!)