Hendrickson warrior under IRS criminal investigation

[Famspear]

A post by a new user, "gabriela," at lost horizons dot com:

[*]MY CASE WITH IRS - YOUR FEEDBACK APPRECIATED

I was reported to the IRS by my ex-boyfriend.

In July 2010 my CPA called me that agents from IRS came to him and asked questions about me.

Soon after summons from my banks, my relatives banks start arriving in the mail.

In 2011 I met with agents and took 5th.

In late 2012 IRS send me a letter offering me to have a conference with them. I met them, they told me, than I am under criminal investigation

by IRS code 26 7206[1] .

Almost 3 years they are looking for checks in banks, cashing places, talking to people who wrote checks......

My question to you:

Should I amend all 1040s in past 6 years at once, with correction to 1099s ?

Do you know a good attorney in Southern California ?

I am in a desperate situation, single mother with 7 year old son, with paid off house.

Any suggestions?

http://www.losthorizons.com/phpBB/viewt ... 830#p28830

[wserra]

Should I amend all 1040s in past 6 years at once, with correction to 1099s ?

Not sure what that means, unless it's "Should I amend my returns to reflect that income I actually earned, instead of the Hendrickson stupidity?" In that case, I wouldn't on my own, but would consult with an experienced criminal tax attorney first. Maybe s/he could make a deal along those lines to head off a prosecution.

I am in a desperate situation, single mother with 7 year old son, with paid off house.

Just the kind of person who should screw around on her taxes.

Any suggestions?

This should be fun. Not for her, of course.

[Famspear]

I assume that since she is allowed to post at losthorizons, she persuaded Peter Hendrickson that she is actually a follower of his Cracking the Code (CtC) scam - uh, method - uh, non-method, etc., etc.

She only just registered at losthorizons a few days ago. This appears to be her first post. I find it interesting that she's been aware of her tax problems since 2010, but is only now asking for "help" from other followers of CtC. I don't know what to make of that, though.

She claims that she has or at one time had a CPA. Was the CPA willfully participating with her in the CtC scam?

She indicates that she might be charged under section 7206(1), which imposes criminal penalties (including up to 3 years in prison) on a person who: "Willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter....." She mentions Form 1099 reports, so it may be that she was trying to falsely "self-correct" the 1099s -- by filing Form 1040 returns that falsely asserted that her income was zero (under the CtC theory that income does not include compensation received in an activity unconnected to the exercise of a "federal privilege"). If I recall, this is the statute by which the Feds sent Hendrickson to prison (although in his case it was in connection with W-2 income, not 1099 income).

[Famspear]

Now, the village idiot over there has responded to gabriela's plea with this:

Welcome to the forum, Gabriela. Your post is a little sketchy to form a complete picture. How have you been filing the past 6 years? As my inquiry over here reveals http://losthorizons.com/phpBB/viewtopic ... 830#p28830 1099-MISC forms function as third-party hearsay and the IRS has no official procedure for the payee to rebut them.

From all the evidence I've seen, this is a bank scam run in conjunction with the US govt. If you are endorsing private credit of the Federal Reserve (via naked signature backside of your paycheck) then you are contracting (albeit a non-disclosed, hidden contract) and subject to the rules (Title 26). The remedy is to use lawful money... [link redacted]

A CHRISTMAS CAROL (with apologies to Dickens)
Our story begins in the bedchamber of Ebenezer Famspear, attorner and purveyor of disinformation. It is Christmas Eve and Famspear, weary and tired, seeks only rest but is disturbed by a distant clinking sound. The noise grew steadily louder and he began to perceive a groaning sound along with it. ‘Humbug!’ said Famspear and closed his eyes. He then remembered that ghosts in haunted houses were described as dragging chains. At this he opened his eyes and made out an old man, an apparition really for it appeared more dead than alive yet moving and making a awful racket.
The chain he drew was clasped about his middle. It was long, and wound about him like a tail; and at its end a heavy steel box inscribed "Federal Reserve/IRS." His body was transparent; so that Famspear, observing him, and looking through his waistcoat, could see the two buttons on his coat behind.
‘Who are you?’ said Famspear, caustic and cold as ever.
‘Ask me who I was.’
‘Who were you then?’ said Famspear, raising his voice.
‘In life I was your partner & victim, Jacob Taxpayer.’
‘Dumb ass!’ returned Famspear, ‘I have but to swallow this toothpick, and be for the rest of my days persecuted by a legion of goblins, all of my own creation. Humbug, I tell you! humbug!’

At this the spirit raised a frightful cry, and shook its chain with such a dismal and appalling noise, that Famspear held on tight to his chair, to save himself from falling in a swoon. But how much greater was his horror, when the phantom taking off the bandage round its head, as if it were too warm to wear indoors, its lower jaw dropped down upon its breast! It cried again, shook its chain and wrung its shadowy hands.
‘Mercy!’ he said. ‘Dreadful apparition, you are fettered,’ said Famspear.

‘I wear the Tax-chain I forged in life,’ replied the Ghost. ‘I made it link by link, and yard by yard; I girded it on of my own free will, and of my own free will I wore it. Is its pattern strange to you?’
[link redacted]

Famspear trembled more and more.

‘Or would you know,’ pursued the Ghost, ‘the weight and length of the tax coil you bear yourself? It was full as heavy and as long as this, seven Christmas Eves ago. You have laboured on it, since. It is a ponderous chain!’

‘Jacob,’ he said, imploringly. ‘Old Jacob Taxpayer, tell me more. Speak comfort to me, Jacob!’

‘I have none to give,’ the Ghost replied. ‘Oh! captive, bound, and double–ironed,’ cried the phantom, ‘not to know, the years of labour paying a tax easily avoided! And you Famspear, with your distraction, lies & ridicule. Your incessant jawboning about "3121 wages, property rights ... wackadoosters" But in death we learn the truth, the truth of a very limited tax, but crafted by men like you Famspear, to deceive and ensnare an entire nation!'

'Stop spirit, I pray thee!'

‘You will be haunted,’ resumed the Ghost, ‘by Three Spirits.’

http://www.losthorizons.com/phpBB/viewt ... f=2&t=2914

He's still obsessed with me, Jay, and other posters here at Quatloos.

[Famspear]

This has to be a bitter pill to swallow for "gabriela." She registers at lost horizons and issues a genuine, desperate plea for help, and this is what she gets in response.

[Dezcad]

This has to be a bitter pill to swallow for "gabriela." She registers at lost horizons and issues a genuine, desperate plea for help, and this is what she gets in response.

That response by Libre is no less helpful than the typical response on LH.

[Famspear]

Gabriela double-posted her plea in two separate threads. In the other thread, user "TranscriptsDontLie" offers her this:

Fwiw: if I remember correctly, 7206(1) is the IRC provision that Pete Hendricksen (PH) was persecuted & prosecuted under. Perhaps he could offer you some insights? On the other hand, here's are a few practical ideas:
(1) your time to "amend" runs 3 years from your original returns' filing (read: mailing) date; after that, game's over.
(2) processing/acceptance of f1040X is discretionary as a matter of agency policy, and you're likely to land in frivolity-hell atop of all other troubles.
(3) IRC 7343 defines the "person" that is subject to the 7206(1) penalty; are you that kind of "person"? Note: a topic I have extensively discussed here in the past, but PH has since purged all that info (now re-posted in part @ www.codebusters.org)
(4) if you REALLY did cheat on your 1040s, make your best deal with auntie.
(5) your paid-for house is what auntie is going after -- a turkey-shoot -- and will not let go for a long time.
(6) because most/good lawyers fear auntie more than fear itself, look elsewhere (not in CA).
(7) once auntie "gets you done", be ready for being pillaged by the CA-FTB ...
Just a few nice thoughts -- good luck, though!

http://www.losthorizons.com/phpBB/viewt ... 832#p28832

I believe "TranscriptsDontLie" is the owner of the "codebusters dot org" web site.

[Quixote]

Fwiw: if I remember correctly, 7206(1) is the IRC provision that Pete Hendricksen (PH) was persecuted & prosecuted under. Perhaps he could offer you some insights?

She'd get better advice from Tommy Cryer.

[Famspear]

"Gabriela" posts more information:

My last comment was incomplete and little sketchy.
I am under criminal investigation by IRS for 2,5 years.IRC 26 7201[1].
I am a private sector - small private company owner. I filed all my 1040s for all years what I am working.
What IRS did - they went to my banks, check cashing places to look for checks made to my company. They found substantial diference in
amounts what was found in banks and what says in 1040s. No W2 or 1099s were filed for workers. I received about 6-8 1099s each year
for about $50,000 per year.
My question is:
If I amend my past 6 years 1040s with 1099s corrections / I am not looking to get a refund, I paid no taxes/ . Only I thought it will help me
to proof that I had no '' income" from federally connected activities. If company name what was written on 1040s, 1099s is the same as a
company name on the other checks deposited in banks, than IRS can see that as the same "income".

I am looking for IRS attorney outside CA, if you have any suggestions.

Sorry that my comment is sketchy, english is my second language and I am nervous about all this.

I am afraid if I amend past 6 years 1040s, I will make thing even worse, they will go after me more aggresivly,
on the other hand, if I do not amend them, then there is a proof that I had "income". / I understand that they will say that it is frivolous./

Any suggestions?

http://www.losthorizons.com/phpBB/viewt ... aa8#p28836

[LPC]

I was reported to the IRS by my ex-boyfriend.

Perhaps that's his idea of foreplay?

(Sorry. There's probably something better or more interesting or meaningful in the thread, but that's what I come up with first, so I'm going with it.)

[AndyK]

Gabriela is in deep doodoo.

In all likelihood, she owes significant $$$ in federal back taxes, interest, and penalties.
Also, since she lives in California, she'll be dealing with some people who make the IRS look like pussycats.

Gabriela needs to (1) engage a highly skilled tax attorney, (2) deal with the IRS to arrange a settlement / pay-off plan, and (3) find a caretaker for her child in case she ends up in club fed.

If she throws herself under the bus, admits all wrong doing, pays everything owed, she MIGHT end up with a sentence of probation -- if she's lucky.

If she continues to rely on advice from the LoserHeads, her future looks a lot bleaker.

[ashlynne39]

She must be desperate. She's now posted 4 threads at LostSouls. Here is the latest tidbit of advice from Libre.

Just to let you know, my small company received in excess of $50k per year which was deposited in banks, and paid 0 income tax the past 5 years. Not everything is income under the Revenue Acts of Congress.

[jkeeb]

Not everything is income under the Revenue Acts of Congress.

Blind pig/Acorns

Of course none of the exceptions will apply to her. And I doubt she kept good records so that she could deduct her legal expenses.

[Assessor]

I am a private sector - small private company owner.

Doesn't that make gabriela the "officer of a corporation", and thus "included" in the definition of those liable for income taxes?

[Gregg]

I'm kind of thinking that in the end her biggest problem is going to be explaining the checks deposited or cashed at the check cashing places or places not a bank. That looks to me like pretty convincing evidence of evasion.
And having employees you didn't withhold from is a big problem, too, isn't it?

Gabby is going to prison, the over/under is 32 months....

[Cathulhu]

Unless she hires a damn good tax attorney, files actual returns rather than fraudulent crap, and works very hard to make an agreement to repay, she's losing her home and business and going to prison. But she's drunk the kool-aid, and is actually thinking Worriers like Harv will save her. Lotsa luck with that...wonder if Harv is seeing his future. But I doubt he makes that much income to get the IRS' interest. Not that much to investigate about somebody who sells watermelons by the side of the road.

[Number Six]

One of the first times I've seen an ex-boyfriend turn in a girlfriend, I don't know what the statistics are but it has got to be 10-1 or 20-1 the other way around. And I'm surprised the authorities took the case so seriously. Ultimately it will be a huge loser for the woman. http://taxhelponline.com/resources-and- ... laims.html

[Burnaby49]

One of the first times I've seen an ex-boyfriend turn in a girlfriend, I don't know what the statistics are but it has got to be 10-1 or 20-1 the other way around. And I'm surprised the authorities took the case so seriously. Ultimately it will be a huge loser for the woman. http://taxhelponline.com/resources-and- ... laims.html

I think it's a victory for women's rights! As some readers might remember I spent 35 years in the CRA, Canada's IRS. I had some involvement with our compliance section, the group responsible for checking out tips and anonymous leads. The two main sources were ex-employees turning in the boss and ex-wives or girlfriends. I think it was largely because the ex-husbands or boyfriends were the ones who had the money and were cheating both the CRA and their lady friends. Now that women are getting more high paying jobs and becoming successful entrepreneurs I expect to see a lot more ex-husbands or boyfriends turning them in.

[wserra]

It's known as equal rats - er, rights.

[Number Six]

There was this episode from "The Rockford Files" where a young woman was trying to do the right thing as an insider to a tax fraud in her little town: "The Mayor's Committee from Deer Lick Falls". Various men involved in the fraud try to bump her off and as usual in these detective dramas there are a number of critical moments and the corrupt businessmen ultimately get nailed not just for tax fraud but for more serious criminal charges. I'm sure those who work in tax departments over a long period of time have seen many of these cases.