Baton Rouge OID TP Jack Ray Carr Convicted

[jcolvin2]

http://www.justice.gov/opa/pr/2012/June/12-tax-780.html

Department of Justice

Office of Public Affairs

FOR IMMEDIATE RELEASE
Wednesday, June 20, 2012
Jury Convicts Louisiana Tax Defier

Jury Finds Baton Rouge Resident’s Use of False Forms 1099-oid Fraudulent
Jack Ray Carr, of Baton Rouge, La., was convicted today after a three-day jury trial of one count of corruptly interfering with the due administration of the Internal Revenue laws, four counts of filing false income tax returns and one count of aiding and assisting in the preparation of a false income tax return, the Justice Department, Internal Revenue Service (IRS) and Treasury Inspector General for Tax Administration (TIGTA) announced.

The evidence at trial established that Carr threatened violence against a federal agent, filed false documents and tax returns with the IRS, and attempted to pay his tax debt with fraudulent bonds, fictitious money orders and a fake check. On three successive personal income tax returns, Carr falsely reported that his and his wife’s income was “$0.00,” despite earning hundreds of thousands of dollars in total during the 2001, 2002 and 2003 tax years. In 2009, on two tax returns, Carr falsely reported more than $100,000 of federal income tax withholdings based on fictitious IRS Forms 1099-OID attached to the tax returns that Carr filed in his own name and in the name of his wife. In doing so, Carr claimed more than $150,000 of fraudulent tax refunds from the U.S. government.

Carr faces a potential maximum sentence of 18 years in federal prison and a fine of up to $1.5 million.

Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, thanked the special agents of the IRS - Criminal Investigation and TIGTA, who investigated this case. Assistant Attorney General Keneally also thanked Tax Division Trial Attorneys Justin Gelfand, Jason Poole and Gregory Bailey, and former Tax Division Trial Attorney Matthew Mueller, all of whom prosecuted the case at various stages. Finally, Ms. Keneally thanked Donald J. Cazayoux Jr., U.S. Attorney for the Middle District of Louisiana, and his entire office for their assistance.

1099-OID schemes are one of the IRS’s “Dirty Dozen” tax scams for 2012. Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.

12-780

[The Observer]

The Baton Rouge Advocate picked up some choice quotes from Mr. Carr during his sentencing:

“I’ve been denied due process,” Jack Ray Carr, 50, told U.S. District Judge James J. Brady. “I’ve never been properly indicted. They have no proof.”

Carr...also told the judge: “I did not give you permission to incarcerate me at any time.”

Carr said : “I do not feel I have been given a fair shake.”

In an interview after his conviction, Carr said: “The Internal Revenue Code has never been enacted into law.”

So Carr decides to double-down in the Kool-aid barrel.

[Famspear]

Jack Ray Carr is now inmate # 05895-095 at the Federal Correctional Institution Yazoo City Low, at Yazoo City, Mississippi. He is scheduled for release on July 11, 2018.

[grixit]

That's ok, he's not really there.

[.]

He's apparently not been operating in the real world for some time.

Carr falsely reported more than $100,000 of federal income tax withholdings based on fictitious IRS Forms 1099-OID attached to the tax returns that Carr filed in his own name and in the name of his wife.

Perfect. Commit fraud and volunteer evidence of that by providing your fraudulent document with your return.

Even though no 1099 is ever supposed to be attached to a return.

Never mind that the giant fake withholding can't be more than 28% (more likely 20%) of the reported income, which means you owe more, not less than zero, since their usual giant claims put them in a 39.6% top bracket.

Do they think that they can report giant withholding and then not report the associated giant income and the IRS won't notice?

And how do they figure that the IRS won't figure out the fact that the fake 1099-OID form (original or corrected) so generously provided with the return doesn't jibe with what's been filed by the actual issuer of the debt?

Not that they could figure out how to submit a fake corrected 1099-OID to begin with. Have they ever even heard of a 1096? Do they even know what OID is?

The whole OID thing is so monumentally stupid that it makes Schiff, et al look reasonable by comparison. Why anyone would think it could possibly work is totally beyond me.

You'd think that any attached 1099-OID form would put you on a rocket to Ogden. Maybe, now, it does.

[Arthur Rubin]

He's apparently not been operating in the real world for some time.

Carr falsely reported more than $100,000 of federal income tax withholdings based on fictitious IRS Forms 1099-OID attached to the tax returns that Carr filed in his own name and in the name of his wife.

Perfect. Commit fraud and volunteer evidence of that by providing your fraudulent document with your return.

Even though no 1099 is ever supposed to be attached to a return.

I thought that 1099s (and information returns, in general) which show withholding are supposed to be attached to the return (if paper-filed). Has that changed?

[.]

I thought that 1099s (and information returns, in general) which show withholding are supposed to be attached to the return (if paper-filed). Has that changed?

You're quite right, my mistake.

But that's nothing in the grand scheme of OID fraud. The OID morons never can explain how it is that the fake form they filed came into existence. They're not the issuer of the debt. They're not a nominee, allocating OID to the actual recipients. They're not entitled to file any form (or correction) of behalf of the issuer of the debt.

They never owned the supposed debt issue that had deferred interest payments, they don't even know what deferred interest is.

They may as well have used a 1099-MISC, it too has a convenient spot to make up fake withholding. Sheer idiocy.

[Judge Roy Bean]

...
They may as well have used a 1099-MISC, it too has a convenient spot to make up fake withholding. Sheer idiocy.

I submit one really should wonder how such sheer idiocy has resulted in the distribution of millions of dollars to idiots.