Lindsey Springer & Oscar Stilley Indicted (Part 2)

[LPC]

In addition, IIRC the charge is that these payments went to Springer from Stilley's escrow account. I don't see how Oscar can live with the idea that he is giving Springer "gifts" of escrow money.

Unfortunately (or fortunately), Stilley will probably have been disbarred before the criminal case gets to trial, so he will probably be past worrying about the ethical implications.

[Dezcad]

05/15/2009 55 Third MOTION to Dismiss Indictment/Information/Complaint pursuant to CIR v. Duberstein (Re: 2 Indictment ) by Lindsey Kent Springer (Springer, Lindsey) (Entered: 05/15/2009)

05/15/2009 56 Third BRIEF in Support of Motion (Re: 55 Third MOTION to Dismiss Indictment/Information/Complaint pursuant to CIR v. Duberstein ) by Lindsey Kent Springer (Springer, Lindsey) (Entered: 05/15/2009)

Duberstein is a Supreme Court decision addressing the circumstances under which a transfer of property by a business to an individual might be a "gift" (and not income).

I can see Springer arguing to the jury that the payments he received from Stilley were gifts and not income, and demanding an instruction from the judge on the issue, but I can't see how he can ask for a dismissal of the indictment for what is *at* *best* a factual issue for the jury.

Here's the gist of his argument, as taken from the "Brief".

“The conclusion whether a transfer amounts to a ‘gift’ is one that must be
reached on consideration of all the factors.” Commissioner v. Duberstein, 363 U.S.
278, 288 (1960) “Specifically, the trier of fact must be careful not to allow trial of the
issue whether the receipt of a specific payment is a gift to turn into a trial of the tax
liability.” Id.

Whether the liability is alleged that Springer was prohibited from impeding
lawful functions of the IRS in the computation, ascertainment, assessment or
collection of taxes, or whether he is alleged to be “required by law” to provide
information to the Internal Revenue Service on a U.S. Individual Income Tax Form
1040, or whether the alleged claims are that Springer owed a tax deficiency for
years 2000, 2003 and 2005, based upon some newly concluded construction of gifts
Springer is alleged to have received, each of the alleged crimes in each Count rely
almost solely upon whether the money received by Springer triggered a “liability”
Springer was then required to report or pay.

Before any determination can be made as to whether Springer has some
liability to report or pay, a determination must be made as to whether money
received by Springer was excludable from gross income as a “gift” or includable
as “gross income.”

Duberstein holds that the question as to whether money given Springer is a
“gift” or otherwise, must be decided by a non criminal trial first, and is NOT to be
decided in a trial determining any tax liability or tax consequence.

[LPC]

Duberstein holds that the question as to whether money given Springer is a
“gift” or otherwise, must be decided by a non criminal trial first,

This is arrant nonsense, of course. The Duberstein decision was two appeals, one from a decision of the Tax Court and the other from a district court decision in a refund suit. The Supreme Court did not have a criminal case before it, and never said anything about any criminal trials or criminal proceedings.

and is NOT to be decided in a trial determining any tax liability or tax consequence.

WTF? Springer seems to be saying that the federal income tax consequences a transaction must be determined in a non-tax proceeding?

He seems to be misconstruing, and taking out of context, a statement by the court that "the trier of fact must be careful not to allow trial of the issue whether the receipt of a specific payment is a gift to turn into a trial of the tax liability...." But the context is as follows:

The Government derives its test from such propositions as the following: That payments by an employer to an employee, even though voluntary, ought, by and large, to be taxable; that the concept of a gift is inconsistent with a payment's being a deductible business expense; that a gift involves "personal" elements; that a business corporation cannot properly make a gift of its assets. [...] The taxing statute does not make nondeductibility by the transferor a condition on the "gift" exclusion; nor does it draw any distinction, in terms, between transfers by corporations and individuals, as to the availability of the "gift" exclusion to the transferee. The conclusion whether a transfer amounts to a "gift" is one that must be reached on consideration of all the factors.

Specifically, the trier of fact must be careful not to allow trial of the issue whether the receipt of a specific payment is a gift to turn into a trial of the tax liability, or of the propriety, as a matter of fiduciary or corporate law, attaching to the conduct of someone else. The major corollary to the Government's suggested "test" is that, as an ordinary matter, a payment by a corporation cannot be a gift, and, more specifically, there can be no such thing as a "gift" made by a corporation which would allow it to take a deduction for an ordinary and necessary business expense.

363 U.S. at 287-288.

In context, it is clear that the Supreme Court was stating that the deduction (or deductibility) of the payor is not necessarily determinative of the income for the payee.

[GoldandSilverEagles]

I can see Springer arguing to the jury that the payments he received from Stilley were gifts and not income, and demanding an instruction from the judge on the issue, but I can't see how he can ask for a dismissal of the indictment for what is *at* *best* a factual issue for the jury.

In addition, IIRC the charge is that these payments went to Springer from Stilley's escrow account. I don't see how Oscar can live with the idea that he is giving Springer "gifts" of escrow money.

Politicians do it all the time.

Does that qualify Oscar and Lindsey as "politicians"? lol

Tell me why they aren't treated equally in the eyes of the law?

[wserra]

Politicians do it all the time.

Does that qualify Oscar and Lindsey as "politicians"? lol

Tell me why they aren't treated equally in the eyes of the law?

It's hard to know where to begin with stuff like this.

Perhaps you could start by telling me the purpose for which you believe politicians use escrow accounts.

[Doktor Avalanche]

It's hard to know where to begin with stuff like this.

Perhaps you could start by telling me the purpose for which you believe politicians use escrow accounts.

To pay the judges hush money for keeping the real truth about the income tax from the American people, of course.

[GoldandSilverEagles]

Politicians do it all the time.

Does that qualify Oscar and Lindsey as "politicians"? lol

Tell me why they aren't treated equally in the eyes of the law?

It's hard to know where to begin with stuff like this.

Perhaps you could start by telling me the purpose for which you believe politicians use escrow accounts.

To the best of my knowledge, politicians use them B4 and after elections. They use escrow accounts to manage their campaign contributions. This account is used for advertising, travel, payment of campaign employees, and other campaign related expenses that require strict accounting, in addition to what the doktor offered...lol .

[silversopp]

The only thing you're going to ever be able to grasp behind bars is the ol' rugged rod of remorse.

WW will be grasping more rugged rods behind bars than he could ever imagine.

[Nikki]

To the best of my knowledge, politicians use them B4 and after elections. They use escrow accounts to manage their campaign contributions. This account is used for advertising, travel, payment of campaign employees, and other campaign related expenses that require strict accounting, in addition to what the doktor offered...lol .

It's fortunate that the post was prefaced by the highlighted words. Otherwise, the appropriate response would have been "Wrong, wronger, wrongest."

Instead it is sufficient to state that the poster has inadequate knowledge of both escrow accounts and the accounting for political campaign income and expenses.

[GoldandSilverEagles]

To the best of my knowledge, politicians use them B4 and after elections. They use escrow accounts to manage their campaign contributions. This account is used for advertising, travel, payment of campaign employees, and other campaign related expenses that require strict accounting, in addition to what the doktor offered...lol .

It's fortunate that the post was prefaced by the highlighted words. Otherwise, the appropriate response would have been "Wrong, wronger, wrongest."

Instead it is sufficient to state that the poster has inadequate knowledge of both escrow accounts and the accounting for political campaign income and expenses.

My info came from a good friend who operated in the capacity of a finance manager for a political campaign.

[Nikki]

My info came from a good friend who operated in the capacity of a finance manager for a political campaign.

Perhaps you should get back together with your friend and listen to what he (she) is actually saying instead of applying your own layer of misunderstanding to your miscomprehensio0n of his (her) words.

[Doktor Avalanche]

The only thing you're going to ever be able to grasp behind bars is the ol' rugged rod of remorse.

WW will be grasping more rugged rods behind bars than he could ever imagine.

So what are their names again? Chainsaw, Porkchop, Bubba and....?

[GoldandSilverEagles]

My info came from a good friend who operated in the capacity of a finance manager for a political campaign.

Perhaps you should get back together with your friend and listen to what he (she) is actually saying instead of applying your own layer of misunderstanding to your miscomprehensio0n of his (her) words.

I relayed your feed-back/opinions to my friend and they feel that, apparently you've never dealt with a political campaign and that any further opinions from you, on this topic, should be ignored.

[Imalawman]

My info came from a good friend who operated in the capacity of a finance manager for a political campaign.

Perhaps you should get back together with your friend and listen to what he (she) is actually saying instead of applying your own layer of misunderstanding to your miscomprehensio0n of his (her) words.

I relayed your feed-back/opinions to my friend and they feel that, apparently you've never dealt with a political campaign and that any further opinions from you, on this topic, should be ignored.

What did the other voices in your head say?

[GoldandSilverEagles]

Perhaps you should get back together with your friend and listen to what he (she) is actually saying instead of applying your own layer of misunderstanding to your miscomprehensio0n of his (her) words.

I relayed your feed-back/opinions to my friend and they feel that, apparently you've never dealt with a political campaign and that any further opinions from you, on this topic, should be ignored.

Btw...next time use spell check...i.e. "miscomprehensio0n"

What did the other voices in your head say?

In regards to you, that misery loves company.

Furthermore, **If** you are on this forum while on your employers time, **then** get your a$$ back to work and quit $$$ wasting $$$ your employers "money"!

[LPC]

Perhaps you could start by telling me the purpose for which you believe politicians use escrow accounts.

To the best of my knowledge, politicians use them B4 and after elections.

Well, that sure narrows it down. Politicians use escrow accounts before and after elections, but not during elections?

They use escrow accounts to manage their campaign contributions. This account is used for advertising, travel, payment of campaign employees, and other campaign related expenses that require strict accounting, in addition to what the doktor offered...lol .

Escrow is a legal concept and a legal relationship, not a management tool or an accounting method. (I'm also curious about the campaign expenses that require sloppy accounting instead of strict accounting.)

Perhaps you should get back together with your friend and listen to what he (she) is actually saying instead of applying your own layer of misunderstanding to your miscomprehensio0n of his (her) words.

I relayed your feed-back/opinions to my friend and they feel that, apparently you've never dealt with a political campaign and that any further opinions from you, on this topic, should be ignored.

If what you say is true, then both you and your friend have never dealt with an escrow account and any further opinions from you, on this topic, should be ignored.

[Nikki]

Dan:

Please stop giving away the punch line (rational definition of escrow and its use).

It takes all the fun away from tweaking the trolls.

[GoldandSilverEagles]

My friend says sorry that they gave a rather vague explanation.. didn't know what type of people they were going to be dealing with.... should have given a much more detailed explanation for people who don't have a clue what they are talking about.
And yes, I meant before, during and after a campaign... guess I thought you could figure that out for yourself.. my mistake.

And FYI:
Escrow account: special bank account into which escrow monies are deposited and from which they are disbursed. Lawyers, politicians, and real estate brokers maintain escrow accounts to hold money in trust.