Background
John J. Schlabach is an enrolled agent in Spokane, Washington.
Theories Advocated/Promoted
Schlabach has sent out a number of "opinions" (one example can be found here) that are collections of fallacies about no liability for tax and no obligation to file a return, returns being "voluntary." The opinions are supposed to provide a "reliance defense" for willful failure to file.
Books, Web Sites, Videos, and Organizations
See information about "Senior Asset Preservation Services, Inc., below.
Court Actions
Schlabach was disbarred from practice before the Internal Revenue Service on July 16, 2001. See 2002-2 C.B. 419, 420.
In 2008, Schlabach was sued by the state of Washington for violating its Consumer Protection Act by selling "pure trusts" as a form of asset protection, operating under the name "Senior Asset Preservation Services, Inc." See State of Washington v. Senior Asset Preservation Services, Inc. et al., 2008 Wash. App. LEXIS 2714, 2766, 147 Wn. App. 1031, No. 26224-3-III (Wash. Ct. Apps., Div. III, 11/18/2008).
He has lost on a petition to quash a summons from the IRS investigating his personal tax returns. Schlabach v. United States, No. 3:10-cv-00101-RET-CN (M.D. La. 7/6/2010). He also lost when the IRS petitioned to enforce a summons against him, and was cited for contempt. United States v. Schlabach, No. : 2:08-cv-00095-CI (E.D. Wash. 3/24/2010), aff'd, No. 09-35135 (9th Cir. 10/6/2010), reh. den. (2/14/2011).
Schlabach later sued the IRS under the Privacy Act, claiming that in their investigations of him that have put copies of letters in their files that he did not write, but the court ruled that it did not have subject matter jurisdiction. John Schlabach v. Internal Revenue Service, No. CV-09-298-FVS (E.D. Wash. 9/23/2010), aff'd, No. 10-35929 (9th Cir. 12/2/2012) (unpublished).
Students/Disciples/Associates
Schlabach's son, Justin, has been assessed with frivolous return penalties, paid the penalties, and then lost in court trying to recover them. Justin Schlabach v. United States, (Ct.Fed.Cl. 2/17/2011).
Schlabach's name sometimes appears in court opinions when his customers have tax problems and his letters or testimony are disregarded by the court.
He can also screw up estate tax returns as badly as income tax returns. See Estate of Ralph Robinson v. Commissioner, T.C. Memo. 2010-168.
