Failing to report $49 million in income = 10 years

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Re: Failing to report $49 million in income = 10 years

Post by Number Six »

"The defendants have maintained the fiction that they are penniless and not obligated to pay United States taxes," a court document presented by the prosecution said.
"They maintain this fiction despite living in multimillion dollar homes, driving luxury vehicles, vacationing on yachts, getting through traffic in a helicopter and being chauffeured in a limousine," it said.


Talk about chutzpah!
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Re: Failing to report $49 million in income = 10 years

Post by GoldandSilverEagles »

To quote the article, "Mauricio Cohen, 77, and Leon Cohen-Levy, 46, are Spanish citizens."

Where in title 26 r "Spanish citizens" required to pay federal income tax on their financial gain$?
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Re: Failing to report $49 million in income = 10 years

Post by The Operative »

GoldandSilverEagles wrote:To quote the article, "Mauricio Cohen, 77, and Leon Cohen-Levy, 46, are Spanish citizens."

Where in title 26 r "Spanish citizens" required to pay federal income tax on their financial gain$?
First, according to the article, the Cohens made a significant sum by selling a hotel in NY. The gain from that sale is, in most instances I can think of, taxable in the U.S. (and NY) regardless of the nationality of the seller (See Section 861(a)(5) and 897(c)). Second, the tax law imposes a tax on the taxable income of INDIVIDUALS, and not just citizens (See Section 1). Both citizens and RESIDENTS are subject to U.S. tax laws, just like U.S. citizens are subject to the tax laws of whatever country in which they are living and/or working. Of course, U.S. citizens are subject to the U.S. tax laws regardless of where they live, but there is a deduction/exemption to compensate for foreign income taxes paid. I would bet that the Cohens are also liable for taxes to Spain.

If you happen to believe that U.S. and/or state laws cannot apply to foreign citizens, I am sure that there are quite a few foreign citizens in our prison system that would like to hear that. If that is your belief, then I guess you would have no problem with some illegal aliens breaking into your home and taking everything you have. After all, our laws can't apply to them since they are not U.S. citizens. :roll:
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Re: Failing to report $49 million in income = 10 years

Post by Famspear »

GoldandSilverEagles wrote:To quote the article, "Mauricio Cohen, 77, and Leon Cohen-Levy, 46, are Spanish citizens."

Where in title 26 r "Spanish citizens" required to pay federal income tax on their financial gain$?
Wrong question, Gold. You have it backwards.

Section 1 of the Internal Revenue Code imposes the individual income tax on "every" individual, as in "every married individual," etc. The statute does not say "every individual except Spanish citizens."

However, subsection (d) of section 2 of the Code states:
In the case of a nonresident alien individual, the taxes imposed by sections 1 and 55 shall apply only as provided by section 871 or 877.
A resident alien individual (meaning, an alien individual who is a resident of the United States) is not a "nonresident" alien individual -- so a resident alien individual is taxed just as a U.S. Citizen is taxed. If the alien is a nonresident, he or she is taxed as provided in sections 871 or 877.

There is nothing in any of these provisions that exempts "Spanish citizens."

EDIT: See also the post by The Operative, above.
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Re: Failing to report $49 million in income = 10 years

Post by Famspear »

I think there is a tendency on the part of some people to assume that the laws of a given country somehow can apply only to citizens or other residents of that country. It's a natural assumption to make, but it's not accurate.

The reach of U.S. law, including U.S. criminal law, is not limited to the territorial area of the United States, and is not limited to tax violations -- as some terrorists and pirates have discovered -- the hard way.

:twisted:

EDIT: Example:
Whoever, on the high seas, commits the crime of piracy as defined by the law of nations, and is afterwards brought into or found in the United States, shall be imprisoned for life.
--18 USC section 1651 (bolding added).

Notice that nothing in the language of this statute says that the pirate must be a U.S. citizen, or even that the victim must be a U.S. citizen. I'm not an expert on this statute, but I believe that if a Somali pirate attacks a French vessel (even one with no American citizens and no connection to the U.S.) and is captured by a Dutch naval vessel and turned over to U.S. authorities and brought to the United States, that Somali pirate may be tried in the U.S., convicted, sentenced, and imprisoned in the U.S. for life.
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Re: Failing to report $49 million in income = 10 years

Post by GoldandSilverEagles »

CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
PART 1--INCOME TAXES--Table of Contents
Sec. 1.1-1 Income tax on individuals.
(a) General rule. (1) Section 1 of the Code imposes an income tax on
the income of every individual who is a citizen or resident of the
United States
and, to the extent provided by section 871(b) or 877(b),
on the income of a nonresident alien individual.

http://www.supremelaw.org/cfr/26/26cfr1.1-1.htm

First off, what is a "individual"?

How is an "individual" defined in the code?

What exactly is an "individual" as it applies above?

The defendants in the article r "Spanish citizens". Nothing above includes "Spanish citizens". So how does the Federal gov't have ***jurisdiction** to tax the profit$ of a-n-y-o-n-e whom is not a "citizen or resident of the United States" ?
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Re: Failing to report $49 million in income = 10 years

Post by ArthurWankspittle »

GoldandSilverEagles wrote:... resident of the
United States..... Nothing above includes "Spanish citizens".
Not even true if Spanish citizens were forbidden to reside in the US.

Why do people insist on making interpretations of words that do not follow normal usage?

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Re: Failing to report $49 million in income = 10 years

Post by notorial dissent »

The point being that while the Cohens are Spanish citizens, they are “resident” in Miami, doing business in Miami and elsewhere, and that the income event occurred in NYC, all of which makes them liable for tax on income generated within the United States and Florida and NY specifically.

A difficult concept I know, but do try and wrap your intellect around those facts.
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Re: Failing to report $49 million in income = 10 years

Post by . »

First, you should be embarrassed to quote anything, even if it's accidentally accurate, from PAM.
GoldandSilverGasbag wrote:what is a [sic] "individual"?
Well, as the lawyers here will tell you, numerous courts have held that any term not defined in the statute itself has its ordinary meaning.

The statute refers to "individual(s)," as in a person, the commonly understood meaning. It's quite simple and clear. What could possibly be more simple and clear?

It doesn't say "entity," which beyond mere persons includes legal entities like corporations and partnerships (amongst other things.) Do you want it to say "homo sapien(s)" before you will believe that "individual(s)" applies to any and every citizen or resident? How about "sheeple," a favorite term of the delusional?

"Individual(s)." Person(s). People. A common-sense, everyday definition. You know, something that defines every one and all of the dozens of people who post here. It could even mean yourself or Harvey if you're willing to overlook the lack of functioning synapses.

These fine Spanish tax evaders happened to be residents of the US, not citizens, but that nonetheless means that their income is taxable here. It's unlikely that they'll claim that they're not "individuals" as they're not as incredibly dense as you are.
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Re: Failing to report $49 million in income = 10 years

Post by Famspear »

GoldandSilverEagles wrote:The defendants in the article r "Spanish citizens". Nothing above includes "Spanish citizens". So how does the Federal gov't have ***jurisdiction** to tax the profit$ of a-n-y-o-n-e whom is not a "citizen or resident of the United States" ?
Again, you're asking the wrong question. And you're using the wrong terminology.

The term to be used is not "jurisdiction."

The issue is: What law prohibits the U.S. Congress from enacting a law that imposes federal income tax on someone who is not a U.S. citizen or U.S. resident?

Answer: There is no such law. There is no such restriction.
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Re: Failing to report $49 million in income = 10 years

Post by LPC »

Putting Famspear's points into a slightly different focus:
GoldandSilverEagles wrote:So how does the Federal gov't have ***jurisdiction** to tax the profit$ of a-n-y-o-n-e whom is not a "citizen or resident of the United States" ?
Where in the Constitution is Congress *prohibited* from taxing people who are not citizens or residents?

The fact that "Duties, Imposts and Excises" must be "uniform throughout the United States" confirms that Congress can impose taxes on transactions within the states, so it can tax the receipt of income within a state. Unless there is something elsewhere in the Constitution that restricts taxes to citizens and residents, Congress has the power to impose a tax on the payment of income within the United States regardless of whether the income is paid to a citizen, a resident, or a nonresident.
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Re: Failing to report $49 million in income = 10 years

Post by The Operative »

GoldandSilverEagles wrote: http://www.supremelaw.org/cfr/26/26cfr1.1-1.htm

First off, what is a "individual"?

How is an "individual" defined in the code?

What exactly is an "individual" as it applies above?
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Re: Failing to report $49 million in income = 10 years

Post by webhick »

The Operative wrote:
GoldandSilverEagles wrote: http://www.supremelaw.org/cfr/26/26cfr1.1-1.htm

First off, what is a "individual"?

How is an "individual" defined in the code?

What exactly is an "individual" as it applies above?
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Re: Failing to report $49 million in income = 10 years

Post by Famspear »

. wrote:First, you should be embarrassed to quote anything, even if it's accidentally accurate, from PAM.
Dear Gold, etc.: I second this. Please be mindful of preserving your own credibility and dignity, Gold.
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Re: Failing to report $49 million in income = 10 years

Post by GoldandSilverEagles »

Famspear wrote:
. wrote:First, you should be embarrassed to quote anything, even if it's accidentally accurate, from PAM.
Dear Gold, etc.: I second this. Please be mindful of preserving your own credibility and dignity, Gold.
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Re: Failing to report $49 million in income = 10 years

Post by . »

Funny how the current village idiot can't seem to be bothered to respond to any substance.

Let's start with this:

Are you a person?

We'll ignore, for the moment whether or not GasBag is a Spanish person, legal resident or otherwise.
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Re: Failing to report $49 million in income = 10 years

Post by Pottapaug1938 »

. wrote:Funny how the current village idiot can't seem to be bothered to respond to any substance.

He's a coward, just like Van Pelt or Harvester. I've never known the three of them to directly answer any substantive question. GaSE is a decent person otherwise; but he just won't risk having his fantasies shattered.
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Re: Failing to report $49 million in income = 10 years

Post by Brandybuck »

GoldandSilverEagles wrote:So how does the Federal gov't have ***jurisdiction** to tax the profit$ of a-n-y-o-n-e whom is not a "citizen or resident of the United States" ?
The said individuals were R-E-S-I-D-E-N-T-S in the United States.
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Re: Failing to report $49 million in income = 10 years

Post by The Operative »

Brandybuck wrote:
GoldandSilverEagles wrote:So how does the Federal gov't have ***jurisdiction** to tax the profit$ of a-n-y-o-n-e whom is not a "citizen or resident of the United States" ?
The said individuals were R-E-S-I-D-E-N-T-S in the United States.
Even IF the said individuals were NOT residents of the United States (i.e. non-resident aliens), the sale of the NY hotel property was most likely a taxable long-term capital gain. See 26 USC §§ 861-1000. (I'm too lazy to look for the exact sections at the moment. :D )
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Re: Failing to report $49 million in income = 10 years

Post by Pangea »

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