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was an entity that drafted for a fee so-called “Pure Trust
Organizations” (pure trust organizations). At those times,
Sovereignty sold pure trust organizations through promotional
materials. The promotional materials used by Sovereignty during
the year at issue were substantially the same as those that it
used during 1998 (Sovereignty promotional materials). The
Sovereignty promotional materials identified an individual named
Lynne Meredith as the person who drafted the pure trust organiza-
tion documents that were sold by Sovereignty. Those materials
stated: “Your customized Pure Trust Organization(s) will be
mailed within 15 working days from the date that we receive your
completed application.”
Under the heading “ADVANTAGES OF A PURE TRUST ORGANIZATION”,
the Sovereignty promotional materials stated in pertinent part:
1. NO INCOME TAX REQUIREMENTS! As verified by the
I.R.S., “A Pure Trust Organization has no tax
requirements!” * * * A Pure Trust is not required
to pay income tax on its earnings, gains or prof-
its. It does not file a tax return!
2. COMPLETE PRIVACY. A Pure Trust Organization holds
assets, conducts business, and does banking in
complete privacy. IT IS NOT REQUIRED TO HAVE A
SOCIAL SECURITY, E.I.N, OR OTHER FEDERAL IDENTIFI-
CATION NUMBER! Information about the assets,
liabilities, and management of Pure Trust Organi-
zations are completely confidential and are not
accessible to the government or to the public.
3. IRONCLAD ASSET PROTECTION! A Pure Trust Organiza-
tion protects property from unscrupulous judgment
creditors, tax liens, levies and seizures, law-
suits, divorce claims and bankruptcy.
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