FOR IMMEDIATE RELEASE TAX

WEDNESDAY, FEBRUARY 22, (202) 514-2007

2006 TDD (202) 514-1888
WWW.USDOJ.GOV

Federal Court Bars Georgia Man from

Promoting Tax-Fraud Scheme
Atlanta Man Helped Customers Falsely Claim They
Are Exempt
from Federal Taxes as Members of Purported Native
American Tribe
WASHINGTON, D.C. – A federal court in Georgia has enjoined Derrick Sanders,
of Atlanta, from promoting a tax-fraud scheme involving false claims that his
customers were members of a fictitious tribal organization—the so-called Yamassee
Native American Tribe—and further that his clients were exempt from federal
income tax. Native Americans living in the United States generally are not exempt
from federal income tax, and the court found that Sanders is or should be aware that
the Yamassee Native Americans are not recognized as an Indian tribe by the federal
government. Sanders is required to post a copy of the court’s order on the website
where he promotes the scheme. The order also requires Sanders to give the Justice
Department a list with his customers’ names, mailing and e-mail addresses, and
telephone and Social Security numbers.

According to the court, Sanders, in promoting the scheme, repeatedly made false
statements that so-called Yamassee Native Americans are an indigenous Native
American tribe whose members are nonresident aliens exempt from federal income
taxation. Sanders also prepared forms for customers to use to instruct their
employers to stop withholding taxes from their wages on the bogus ground that
Yamassee members are not subject to federal income taxes.

“People who peddle tax scams and those who participate in them cheat all law-
abiding taxpayers,” said Eileen J. O'Connor, Assistant Attorney General for the
Justice Department's Tax Division. “The Department of Justice and the Internal
Revenue Service are working diligently to stop the promotion of fraudulent tax
schemes.”

This injunction suit is part of an effort to stop the promotion of tax scams and the
preparation and filing of fraudulent tax returns. The Justice Department has obtained
injunctions against more than 130 promoters since 2001. More information about
these cases is available at http://www.usdoj.gov/tax/taxpress2006.htm. More
information about the Tax Division is available at
http://www.usdoj.gov/tax/index.html.

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