I did not veiw the whole thing but I have seen this type of argument before. It's wishful thinking by folks who are trying to be creative with the laws.
Law- Title 26 Internal Revenue Code
http://www.law.cornell.edu/uscode/ht...sup_01_26.html
Penalty
http://www.law.cornell.edu/uscode/ht...1----000-.html
"Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution."