Tommy Cryer in Tax Court - Fraudulent Failure to File

[jcolvin2]

http://www.ustaxcourt.gov/InOpHistoric/ ... CM.WPD.pdf

Cryer argued that his receipts were taxable income under Lousiana law, but not under federal law.

Selection from opinion:

The facts supporting respondent’s determination that Mr. Cryer fraudulently
and with intent to evade taxes failed to file Federal income tax returns reporting his
taxable income and income tax liabilities for the tax years 1994 through 2001
include but are not limited to the following:

(1) Mr. Cryer’s awareness of requirements under the
Internal Revenue Code for filing returns as evidenced by
the Federal payroll tax returns he filed for his law practice
during each of the tax years 1994 through 2001;
(2) Mr. Cryer’s failure to file a Federal income tax return
for any of the tax years 1994 through 2001;
(3) Mr. Cryer’s failure to maintain and submit to
respondent complete and accurate records of his sole
proprietorship law practice for 1994 through 2001;
(4) Mr. Cryer’s failure to report any of his gross receipts
from his sole proprietorship law practice;
(5) Mr. Cryer’s failure to report any of the other income
he received;
(6) Mr. Cryer’s admissions on his Louisiana income tax
returns that he received income that was taxable under
Louisiana law during the tax years at issue;
(7) Mr. Cryer’s acknowledgments on loan applications
that he submitted to banks that he had taxable income
during some of the years at issue; and
(8) Mr. Cryer’s eight-year pattern of such activity.

These facts, taken together, satisfy respondent’s burden of proving fraudulent intent
and establish that Mr. Cryer is liable for additions to tax under section 6651(f) for
the tax years 1994 through 2001.

*Edited 3/12/13 to add permanent link to Tax Court opinion.

[Kestrel]

Here's the permanent link to the decision: https://www.ustaxcourt.gov/UstcDockInq/ ... ID=5975532

[wserra]

Here's the permanent link to the decision:

And here is a permanent link to Cryer himself:

I know, I know, don't speak ill of the dead. But Cryer was a POS.

[notorial dissent]

As I recall, Cryer didn't have any living relatives, or at least close ones, and I doubt he had much if any estate left to be fought over, so I'm not too surprised that no one has come forward, and what little there might have been will probably escheat to the state, if the IRS really wants to collect they may well have to sue the state as next of kin for whatever was left.

[Number Six]

When I hear a name like "cryer" I associate it with pictures like this, maybe on a deeper psychological level he was contending with its connotation.

[Kestrel]

As I recall, Cryer didn't have any living relatives, or at least close ones, and I doubt he had much if any estate left to be fought over, so I'm not too surprised that no one has come forward, and what little there might have been will probably escheat to the state, if the IRS really wants to collect they may well have to sue the state as next of kin for whatever was left.

He gor remarried after Carolyn died. He left a wife with a house. It was a very nice house, and at the time of his death both he and she were listed as 50% owners each. I checked the property records. Curiously, a few months later she was listed as a 70% or greater owner on that same house. I don't have time to try to find it this morning. She was listed with a different last name (which I have since misplaced).

The question now is whether they can catch up with her to get the money out of his estate, or whether they're going to bother trying. From the decision:

On July 19, 2012, pleadings were filed opening the Succession of Tommy K. Cryer in the First Judicial District Court, Parish of Caddo, State of Louisiana (docket No. 560863-B). In those proceedings, the court denied probate of a purported will of Mr. Cryer. The State court has yet to appoint anyone as the executor, the administrator, or the independent administrator of the succession, nor has it appointed anyone to act as curator for any missing heir(s).

[notorial dissent]

Interesting, I had missed that, all I remember is about the one wife dieing. Could complicate things a bit.

[LPC]

Link to a write-up by a CPA firm: http://rothcpa.com/2013/03/tax-roundup-3122013/

Write-up is conventional, and I might not have mentioned it but for the plug to my FAQ.

[Joebwan]

"Conventional"? You cut me to the quick!

[Famspear]

"Conventional"? You cut me to the quick!

Welcome to Quatloos!

[Famspear]

"Conventional"? You cut me to the quick!

Oh, and I can't speak for LPC, but I would argue that it's OK to be conventional.

I myself feel only "adequate" today.

Uh oh.



I can feel it coming on........

I'm feeling only "adequate" today --
"Sufficient" in an ordinary way.
It's easy, now, to tell:
I just cannot excel.
There really isn't that much more to say.

[notorial dissent]

Joebwan welcome, actually, "conventional" particularly in consideration of some of the posters we get here is high praise indeed.

[Kestrel]

I just found Cryer's property ownership records. The Republic Magazine article lamenting the "Tax Hero's" death very generously gave the name and address of Cryer's next of kin, and with that info it only took me a few seconds to pull up the public records on the city's website.

At the time of his death, Cryer and wife #2 were listed as 50% owners of their home. Now Cryer is listed as 10% owner and his widow is listed as 90% owner.

I wonder how she pulled that off. But I doubt it will matter when the tax man comes knocking.

[The Observer]

I wonder how she pulled that off. But I doubt it will matter when the tax man comes knocking.

I would guess that a quitclaim or grant deed of some sort was signed at some point by Tommy and given to her to record. But you are right that it isn't going to matter if there were previous encumbrances on the property prior to the date of the signing. Since it is obviously not a joint tenancy, exactly how is the deed titled? I know that property ownership laws differ from state to state and it could effect how much of her *real* ownership might take priority over the federal tax liens if Cryer's liabilities were separate.

[wserra]

FWIW, Louisiana is a community property state. I happily leave the significance of that to those who know more about liens and general real property law than I remember from law school, a long, long time ago in a galaxy far, far away.

[LPC]

"Conventional"? You cut me to the quick!

Sorry I wasn't clear. "Conventional" was intended as a euphemism for "Illuminati."

And welcome to Quatloos.

[Joebwan]

Illuminati? Cool. I can't wait to go to a ceremony. I haven't gotten the manual yet.

[Wolverpus]

I haven't gotten the manual yet.

I ATE MANUAL BEFORE COPIES MADE.

[wserra]

I can't wait to go to a ceremony.

Ceremony? Ceremony? You don't get to go to a ceremony until you've completed at least two major or five minor Acts of Oppressing the Masses.

What are they telling people these days?

[Pottapaug1938]

I can't wait to go to a ceremony.

Ceremony? Ceremony? You don't get to go to a ceremony until you've completed at least two major or five minor Acts of Oppressing the Masses.

... at least a ceremony worth attending, I suppose. The First Meeting with a candidate's Initiation Cadre is ceremonious enough; but since no one is present except those parties, I guess it's not worth considering as a "ceremony".