Another newspaper alleging Demo as author

[The Observer]

Montgomery Advertiser

October 1, 2007
'Corporation sole' viewed as tax scam by experts

By Francis X. Gilpin

The Internal Revenue Service has warned taxpayers that misuse of "corporation sole" laws by self-proclaimed clergy won't get them out of paying federal income tax.

Ellen P. Aprill, a tax law professor at Loyola University in California, said the IRS has listed corporation soles among the agency's "dirty dozen" of tax evasion scams.

"This scheme shamelessly tries to take advantage of special tax benefits available to legitimate religious groups and church leaders," then-IRS Commissioner Mark W. Everson said in a 2004 warning.

Financial analyst J.J. MacNab, who is writing a book about tax protesters, said purported preachers who form improper corporation soles roll all of their family's assets into a trust, take a vow of poverty, and then claim a tax exemption as a religious organization.

Promoters of corporation soles charge up to $1,000 a head for seminars on how to escape tax, child support and other debts.

The IRS focuses on the promoters in order to get their client lists, MacNab said. The agency then opens criminal cases against the clients, she said.

Donald B. Tobin, a former U.S. Department of Justice tax attorney, said challenging the IRS on corporation soles is almost pointless.

"Nobody has ever succeeded with one of these," said Tobin, who now teaches law at Ohio State University.

[Demosthenes]

That was the sidebar for a larger article.

Minister, poverty claim draw IRS fire

By Francis X. Gilpin
fxgilpin@gannett.com


October 1, 2007

A Wetumpka minister is under criminal investigation by the Internal Revenue Service because he claims to be exempt from federal income tax.

IRS agents have been seeking bank and other financial records of Bishop William D. Paul and his physician wife dating back to 2001, according to court filings. Bishop Paul said he hasn't filed a personal tax return in more than 20 years.

Bishop Paul, 55, said he took a vow of poverty in 1984. After ordination in the Church of the Living God in Christ in 2001, the bishop declared himself and his ministry to be a "corporation sole."

A corporate resolution of William D. Paul Ministries Inc. contends that the IRS considers all of his earnings to be exempt from income tax. "In fact, no state or federal tax returns are to be filed," according to the resolution, dated April 3, 2005.

That could be a costly misreading of the Internal Revenue Code, according to tax experts. The IRS moves aggressively against corporation soles, said J.J. MacNab, a Maryland financial analyst who has testified about tax scams before Congress.

In an interview at a Montgomery building where his wife practices rheumatology, Bishop Paul said he wasn't afraid of the IRS. "They're not coming after me," said the minister. "I'm going after them."

Despite the threat of criminal prosecution, the minister lectured IRS agent Larry J. Ellis on religious persecution last year. Using his PDI Ministries Inc. stationery, Bishop Paul warned Ellis in a letter that the federal agent could be fired and subject to criminal penalties of up to five years in prison and a $10,000 fine.

Quoting Scripture as easily as IRS regulations, Bishop Paul said he doesn't need an attorney in his legal battle with Uncle Sam.

"I have Jesus on my side," he said.

Bishop Paul said he ministers to the homeless and military veterans from a small office next to where his wife, Donna M. Paul, sees arthritis patients.

His pauper status was questioned last year by a Montgomery County circuit judge, who found Bishop Paul owed nearly $25,000 in child support to a Mississippi woman who bore him a son about five months before the minister wed Dr. Paul in 2002.

The minister's testimony that his sole source of income was $2,000 a month from PDI Ministries was "not credible," Judge Patricia D. Warner wrote in an order.

"The testimony was replete with references to alleged IRS code citations and other unbelievable reasons as to why he/it was prohibited from earning income," Warner wrote.

Calling PDI Ministries, "nothing more than an alter ego of William Paul," Warner wrote: "Mr. Paul will earn whatever amounts he believes necessary to keep his various child support orders as low as possible."

In a bankruptcy court petition, the couple reported 2002 income of $160,000. The medical practice reported income of $900,000 in 2003, court records show.

While Bishop Paul may have taken a vow of poverty, Warner wrote, "this child for whom he is the biological father has not taken a vow of poverty and is due to be supported."

Bishop Paul called the ruling the work of an inexperienced judge. He later filed a complaint with the Alabama Judicial Inquiry Commission, which dismissed it.

In her order, Warner found that Bishop Paul derives income from seven nonprofits, one of which collects $5,000 a month in rent as landlord for his wife's medical office.

"These corporations own other such income-producing properties," Warner wrote, "although Mr. Paul equivocated and employed doubletalk in an effort to confuse or hide his actual income from the court."

[The Observer]

I note a pattern here - deadbeat TP male who has no visible means of support married to a professional physician.

[LPC]

Quoting Scripture as easily as IRS regulations, Bishop Paul said he doesn't need an attorney in his legal battle with Uncle Sam.

"I have Jesus on my side," he said.

Jesus didn't do so well representing himself at his own trial.

I think I'd rather have Moses (aka "the lawgiver") on my side.

[The Observer]

I think I'd rather have Moses (aka "the lawgiver") on my side.

Why? The minute he got angry with the way things were going in court, he would literally be tossing the law at the judge.

[Lambkin]

"I have Jesus on my side," he said.

So what's he going to do when he goes down in flames? Pull a "Job" and say God wants him in jail for a reason? Reconsider atheism? Something tells me his zeal will be unaffected by reality taking a bite out of his ass.

[Judge Roy Bean]

Quoting Scripture as easily as IRS regulations, Bishop Paul said he doesn't need an attorney in his legal battle with Uncle Sam.

"I have Jesus on my side," he said.

Sounds exactly like Kurt Johnson of Dorean infamy. When confronted, haul out the religious dogma to rally the sycophant fools.

[Harrison Bergeron]

What I don't understand is why these highly-educated professional females get married to TP deadbeats in the first place.

[Cobalt Shiva]

What I don't understand is why these highly-educated professional females get married to TP deadbeats in the first place.

Love is not only blind, it's frequently stupid and crazy.

[.]

Love is not only blind, it's frequently stupid and crazy.

Perhaps there's something to the "bad boy" thing.

Those TPs are real tough guys!

Well, except for Ed. And all the others.

Doesn't every woman want to shack-up with a white-collar criminal?

[Harrison Bergeron]

Demo, any idea yet when the book will be completed/released?

[The Observer]

Demo, any idea yet when the book will be completed/released?

It never will be - we have a very cunning plan to have a serial run of moonbat TPs attracting public attention. By doing this, we ensure that Demo will be forced to research and cover the activities and events for the current TP being pursued and prosecuted by the law. By the time the current TP is sent off to prison, a new TP will be entering the limelight and once again Demo will be forced to add a new chapter to her book.

By the time she gets finally through, the publisher will revise the publication to appear as an encyclopedia instead, and any movie/tv rights will have to formatted as a long-running serial or soap opera.

As proof of this, I only need mention that as the Ed Brown affair is winding down, the Wesley Snipes situation is heading to full speed.

[Demosthenes]

Now that Snipes has moved back for three months, I'm almost done with the exception of some "color" from the Dorean trial next week.

[Nikki]

Must resist urge to make wiseass remark about "color" at Snipes' trial.

[The Observer]

Now that Snipes has moved back for three months, I'm almost done with the exception of some "color" from the Dorean trial next week.

A temporary snag in our plan, I assure you. According to Barnum's Law, a new TP is due to emerge within the next 60 seconds.

[Quixote]

Sometimes, the research is so much more interesting than the writing. Just ask Ralph Vitale.