TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Sunday, May 6, 2007

DOJ Busts Author of Cracking the Code


The Department of Justice has announced that it has obtained a permanent injunction against Peter Eric Hendrickson, author of Cracking the Code: The Fascinating Truth About Taxation In America:

A federal court in Detroit has permanently barred Peter and Doreen Hendrickson of Commerce Township, Mich., from filing tax returns and forms on which they falsely report their income as zero .... The injunction ... requires the couple to repay more than $20,000 in federal income, Social Security and Medicare taxes that they had obtained by filing false tax returns with the IRS.

The order notes that the couple based their improper conduct on a book Peter Hendrickson wrote called Cracking the Code. The book states that federal tax withholding and income taxes on wages are applicable only for a limited class of people, primarily government employees. The court found that position to be “false and frivolous,” and cited an earlier court decision holding the position to be “preposterous.”

Based on advice in Hendrickson’s book, individuals have unlawfully filed tax returns with false substitute W-2 wage statements they prepare reporting little or no wage income. They also fail to submit the correct W-2 wage statement they receive from their employers. Hendrickson’s scheme is number five on the IRS’s 2007 list of the “Dirty Dozen” tax scams.

For more, see Joe Kristan.

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We the people never formerly turned our government over to them the politicians. Therefore using the logic of the unlawful courts their exsistence and authority is unconstitutioal.

Great argument though unlikely to be listened to by the keepers of the keys.

Posted by: Zimbabalouie | May 6, 2007 12:49:09 PM

If you read the law itself, particularly the definition for "trade or business", you will see that he is correct. Any exposure to the public re; the fraud is squashed by force. ALL: don't read the book - read the law...especially the WILL be amazed.

Posted by: It is true | May 7, 2007 7:53:48 AM

If you read the law itself you will find his statements are based in fact. Pay attention to the definitions....such as employee and trade or business....the are not defined as you would suspect!

Posted by: It is true | May 7, 2007 7:57:59 AM

Just finished the book this week when I read of the injunction. This guy is very smart and his logic is impressive. Please read the book yourself before passing judgment. This republic is in its last throws.

Posted by: Walter | May 9, 2007 9:01:40 AM

I've got a Certified copy of a report from the National Archives.

The report is entitled, "Collection at Source of the individual normal income tax". This is an 80 page Memo from the Division of Tax Research to the Dept of Treasury and it states:

"The largest portion of consumer incomes in the United States is not subject to income taxation. Likewise, only a small proportion of the population of the United States is covered by the income tax. For 1936, taxable income tax returns filed represented only 3.9% of the population."

The 16th Amendment...the Income Tax Amendment done in 1913 has never been changed. So why are so many people supposedly subject to it in 2007 when 28 years after the Amendment was passed the majority weren't subject to it as spoken in their own words?

Wake Up People!


Posted by: John Galt | May 11, 2007 11:47:39 PM

Mr. Griffin, you were at the GML 2007 with Peter. His book Does Not say income taxes are illegal. Do a read on it folks, it may save your sanity and ameros.

Posted by: Doug McMichael | May 12, 2007 4:23:25 AM

Income Tax must be abolished!! I think that government can raise money like private business. In this world government is a thief by imposing income tax.

Posted by: Koichi Ito | May 12, 2007 5:09:56 AM

What would anyone expect a tax attorney to say about Cracking the Code other than a hatchet job?
Hendrickson addresses the DOJ "bust" in his book and reveals it for what it really is; a desperate attempt by the IRS to scare people away from using a correct interpretation of the law and having them revert to filing the way the IRS really wants them to.
Don't fall for self-serving dismissals of this important book by those who profit from the tax industry. Read the book!

Posted by: Bill Crow | Jun 19, 2008 7:15:28 AM