Background
Not known.
Theories Advocated/Promoted
Hendrickson's believes that the federal government can tax, and has taxed, only the salaries of government employees and incomes from the exercise of "federal privileges." He is able to reach these conclusions because he believes that the words "employer," "employee," "wages," and other words used in the Internal Revenue Code and regulations do not have their common, ordinary meanings but only very narrow legal meanings, and the word "includes" is restrictive.
Books, Web Sites, Videos, and Organizations
Hendrickson wrote and sells a book titled Cracking the Code: The Fascinating Truth about Taxation in America which purports to "decipher" the "deliberately confusing and misleading construction" of the Internal Revenue Code.
He also owns and operates the "Lost Horizons" web site, http://www.losthorizons.com, which promotes his book and his theories.
Court Actions
Hendrickson pleaded guilty to one count of willfully failing to file an income tax return and one count of conspiracy to place an incendiary device in the United States mail. United States v. Peter Hendrickson, No. 2:1991cr80930 (U.S.D.C. E.D. Mich.). Hendrickson was sentenced to 21 months in prison, and was released on 8/25/1993.
The conspiracy charge was based on a firebomb put into the mail at the United States Post Office in Royal Oak, Michigan, on April 16, 1990, the last day for filing federal income tax returns that year. The bomb went off in the post office, injuring a postal worker and a bystander. Hendrickson was apparently able to get a favorable sentencing recommendation for himself (and get charges dropped against his then girlfriend, later wife) by secretly tape-recording one of his co-conspirators and testifying against him. The courts ruled that the tape-recording was Hendrickson's own idea, and not part of any agreement with the United States government, so the secret, warrantless taping did not violate the 4th Amendment. United States v. Scarborough, 43 F.3d 1021 (6th Cir. 1994).
The IRS also served summonses on a number of different banks seeking financial records of Hendrickson's accounts at those banks. Hendrickson filed petitions in federal court to quash the summonses, but every one of his petitions have been denied. Peter E. Hendrickson v. United States, No. 3:2006mc00008 (U.S.D.C. E.D. Va. 5/8/2006) (petition denied; Capital One Bank ordered to comply with summons); Peter E. Hendrickson v. United States, No. 8:2006cv00345 (U.S.D.C. Neb. 10/4/2006) (petition denied); Peter E. Hendrickson v. United States, No. 2:2006x 50394 (U.S.D.C. E.D. Mich. 6/2/2006) (petition denied), affirmed, No. 06-1870 (6th Cir. 4/10/2007), rehearing denied, 8/8/2007, cert. denied, No. 07-624 (1/7/2008), rehearing den. (2/25/2008); Peter E. Hendrickson v. United States, No. 2:2006x 50396 (U.S.D.C. E.D. Mich. 6/29/2006) (petition denied), affirmed, No. 07-1144 (10/2/2007 6th Cir.), rehearing denied (11/30/2007); Peter E. Hendrickson v. United States, No. 5:2006mc80094 (U.S.D.C. N.D. Cal. 7/18/2006) (petition to quash summons directed at EBAY/PayPal denied), affirmed, No. 06-56129 (9th Cir. 8/13/2007).
After he published Cracking the Code, Hendrickson began bragging on his web site, "Lost Horizons," about the refunds that his followers were able to obtain, even publishing copies of refund checks, some of which still had names or addresses still visible. The government finally filed a civil action against Hendrickson and his wife, requesting a judgment against them for the erroneous refunds issued to them and an injunction requiring them to file correct tax returns. The government's motion for summary judgment was granted, the court holding that there was no dispute as to any material fact, and the government was entitled to judgment as a matter of law. United States v. Peter Eric Hendrickson, No. 06-11753 (U.S.D.C. E.D. Mich. 2/26/2007), affirmed, No. 07-1510 (6th Cir. 6/11/2008) (sanctions of $4,000 imposed for frivolous appeal).
Students/Disciples/Associates
When the government filed the civil action against Hendrickson and his wife for the erroneous refunds paid to them, the government also filed six similar suits against some of his followers. "United States Sues Nine in Nationwide Crackdown on Tax-Refund Scam," U.S. Dept. of Justice Press Release (4/13/2006). The other suits were against Sharon K. Artman of Largo, Fla.; Michael J. Dowling of San Diego; Joy M. Ferguson of Henderson, Nev.; Melvin L. Gerstenkorn of Topeka, Kan.; Larry B. Golson and Debra G. Golson of Montgomery, Ala.; and James A. Spitzer of Winter Park, Fla., and all were successful. See, e.g., United States v. Ferguson, 2007-1 U.S. Tax Cas. (CCH) par. 50,461 (D. Nev. 2007).
The judgment against James A. Spitzer was affirmed by the 11th Circuit Court of Appeals, and sanctions were imposed for bringing a frivolous appeal. United States v. James A. Spitzer, 2007 TNT 163-5, No. 07-11073 (11th Cir. 8/21/2007), aff'ng No. 06-00479-CV-ORL-22JGG (U.S.D.C. M.D. Fla. 2/13/2007) (erroneous refund of $16,614 ordered repaid). In a later order, the District Court also ordered Spitzer to pay double attorneys' fees to the United States, in the amount of $16,285.35, "as a sanction for his frivolous and bad faith defense of the entire case." Id., at Docket #49 (7/25/2007).
At least two different return preparers who expressly relied on Cracking the Code have been enjoined from preparing tax returns, the courts holding that the returns were false and frivolous. United States v. Donald A. Gray, 2007 U.S. Dist. LEXIS 19833; 99 A.F.T.R.2d (RIA) 1695, 2007 TNT 56-10, No. 1:07-CV-42 (U.S.D.C. W.D. Mich. 3/19/2007); United States et al. v. Beverly J. Hill et vir. et al., 2005 U.S. Dist. LEXIS 38086; 97 A.F.T.R.2d (RIA) 548, 2006 TNT 27-13, No. CV-05-877-PHX (U.S.D.C. Ariz. 12/22/2005).