A big ad in Utah newspapers this week pushes a seminar that promises to show you how to legally avoid paying federal taxes. Is it too good to be true? News Specialist Richard Piatt called the people who are running the seminar to find out.

The seminar itself is perfectly legal, packed with detailed information on tax law. But keep in mind that how you apply that information to your tax return is your responsibility--even if the consequences don't come for a couple of years.

Your signature on a tax return means it's you who is responsible for everything about it. Keep that in mind if you take the tips offered at the seminar advertised in large newspaper ads this week.

The Sarasota, Florida, based Tax Informer claims there is a loophole in the tax code that allows you to legally avoid paying federal taxes. Over the phone, Tax Informer founder Chad Prater told me it's not a scam, and encouraged us to go to the seminar, ask questions, and to "take that leap of faith."

Instead, we spoke to tax attorney Bill Orton, who looked at the information on the web site for us. His advice: Be careful.

Bill Orton/Tax Attorney: THEY ARE TAKING A VERY NARROW DEFINITION THAT DOES NOT APPLY TO MOST TAXPAYERS, SAYING IT APPLIES TO EVERYONE, AND ON THAT BASIS SAYING YOU DON'T HAVE TO FILE A TAX RETURN.

There's no question: Taxes make people mad. Nobody likes paying them. Tax reform is a hot topic. And there are plenty of ways to reduce your taxes. The question is: Is a tax break this easy to find? We asked the IRS.

Wayne Peterson/Internal Revenue Service: I WOULD WARN YOU THAT THE COURTS HAVE HEARD THESE ARGUMENTS TIME AND TIME AGAIN, AND HAVE CONSISTENTLY RULED AGAINST THEM. AND IT'S JUST A MATTER OF TIME.

At matter of time before you may have to pay the tax you owe anyway, after a few years and a series of headaches.

Bill Orton/Tax Attorney: IF YOU FOLLOW THEIR ADVICE, YOU'RE GONG TO GET AUDITED. THEN YOU'RE GOING TO HAVE TO HIRE AN ATTORNEY TO DEFEND YOURSELF. AND YOU'RE GOING TO END UP PAYING THE TAXES AND INTEREST ON TOP OF IT.

The people who run this seminar do have interesting arguments to support their position. But if you are seriously looking at reducing your personal tax burden, may we suggest making this seminar the beginning of your quest for information, not the end of it.

August 6, 2002