Feds file suit against Roger Stone for unpaid taxes

The Department of Justice filed a civil lawsuit on Friday against Roger Stone, the longtime GOP political operative and ally to former President Trump, accusing him of owing the government about $2 million in unpaid federal income taxes…

In a federal district court in Florida, the Justice Department alleged Friday that Stone and his wife Nydia used a limited liability corporation called Drake Ventures to “receive payments that are payable to Roger Stone personally, pay their personal expenses, shield their assets, and avoid reporting taxable income to the IRS…”

The Justice Department alleges that after Stone was criminally charged in January 2019, he and his wife used Drake Venture funds to purchase their home in Broward County, Fla., and registered it under another entity. According to the lawsuit, the couple was in “substantial debt” to the IRS at the time of purchase.

In a statement Friday night, Stone dismissed the Justice Department’s allegations as a political attack on him and his family.

If there’s anything Stone should be expert about it’s political attacks. Though, like Trump, Stone believes he is above the law.

Economics of our crap government


Charles RettigAnna Moneymaker/Getty

❝ The IRS audits the working poor at about the same rate as the wealthiest 1%. Now, in response to questions from a U.S. senator, the IRS has acknowledged that’s true but professes it can’t change anything unless it is given more money.

❝ ProPublica reported the disproportionate audit focus on lower-income families in April. Lawmakers confronted IRS Commissioner Charles Rettig about the emphasis, citing our stories, and Sen. Ron Wyden, D-Ore., asked Rettig for a plan to fix the imbalance. Rettig readily agreed.

Last month, Rettig replied with a report, but it said the IRS has no plan and won’t have one until Congress agrees to restore the funding it slashed from the agency over the past nine years — something lawmakers have shown little inclination to do.

❝ On the one hand, the IRS said, auditing poor taxpayers is a lot easier: The agency uses relatively low-level employees to audit returns for low-income taxpayers who claim the earned income tax credit. The audits…are done by mail and don’t take too much staff time, either.

❝ On the other hand, auditing the rich is hard. It takes senior auditors hours upon hours to complete an exam. What’s more, the letter says, “the rate of attrition is significantly higher among these more experienced examiners.”…

With a White House, Senate, committed to kissing wealthy corporate butt, not much change in sight until Republicans are kicked out of power altogether. There will still be no shortage of battles with “centrist” who count on supplanting Republicans…offering the same services. Tweedledee and Tweedledum are still hard to tell apart.

Watch for the morning news

The NY TIMES and the Washington POST will be turning up two more whistleblowers. One is from the intelligence community and reportedly has even more and better evidence about corrupt phone calls to Ukraine. Another is from the IRS and has info about Trump and Giuliani getting report(s) on Trumpo’s sleazy taxes stashed in limbo.

Our fake president tries as well as he can to shut down a free press. But, good, bad, or indifferent, he has not succeeded and isn’t likely to.

IRS Hands Equifax $7.25 Million No-Bid Contract to Help “Verify Taxpayer Identities”

❝ With no apparent sense of irony, the nation’s tax collectors have awarded embattled credit-reporting agency Equifax a contract to assist the IRS in verifying “taxpayer identities” as well as assist in “ongoing identity verification and validations,” according to contract award posted to the Federal Business Opportunities database.

The no-bid contract, which pays $7.25 million, is listed as a “sole source” acquisition, meaning the IRS has determined Equifax is the only business capable of providing this service — despite its involvement in potentially one of the most damaging data breaches in recent memory…

❝ Equifax, of course, is facing intense criticism over a cybersecurity incident which reportedly compromised the personal information of roughly 145 million Americans. The company’s former CEO, Richard Smith, was taken to task on Tuesday while testifying before the House Energy and Commerce subcommittee. Smith resigned last week amid backlash over the company’s handling of the breach.

Republicans and Democrats alike lambasted the former chief executive over Equifax’s response. Representative Greg Walden was perhaps the harshest in his criticism: “I don’t think we can pass a law that fixes stupid…”

Not a case I would say of “The blind leading the blind” — more like “Stupid leading the incompetent”.

Claiming a social security number is the “Mark of the Beast” not a good defense – so saith the IRS

A Pennsylvania man has been convicted of failing to file his income tax returns for 21 years because he considered using a Social Security number akin to using the “mark of the beast” spelled out in the Bible.

James Schlosser, who lives in the town of Bird-in-Hand, was convicted in federal court in Allentown…

Prosecutors say by failing to file the returns from 1994 to 2014 he didn’t report $2.3 million in income he earned as a salesman of medical equipment. Prosecutors say he funneled the money through foreign business trusts and corporations he registered in Nevada.

An attorney for the 59-year-old Schlosser didn’t immediately comment…He’ll be sentenced June 10 when he faces a maximum of five years in prison and $450,000 in fines.

Wonder if he’ll ask Trump for a pardon?

Cripes! Even America’s favorite cons are being outsourced

❝ Police in India say they have arrested 70 call centre workers on suspicion of tricking American citizens into sending them money by posing as US tax officials.

A total of 772 workers were arrested on Wednesday in raids on nine fake call centres in a Mumbai suburb…

An estimated $36.5 million was extorted from Americans, police said.

❝ Seventy were placed under formal arrest, 630 were released pending questioning over the coming days, and 72 were freed without further investigation.

“The motive was earning money,” said Parag Marere, a deputy commissioner of police. “They were running an illegal process, posing themselves as officers of the [US] Internal Revenue Service.”

Marere said the year-long scam involved running fake call centres that sent voicemail messages telling US nationals to call back because they owed back taxes.

Those who called back and believed the threats would fork out thousands of dollars to “settle” their case, he said. The scam brought in more than $150,000 a day…

Americans are so fracking gullible. You get a voicemail telling you to callback the IRS – without ever checking on the phone number. You’re only calling back – much of the time – because you know you’ve been Trumping your tax bill, anyway. If they can pump you for how much you think you owe – it’s only a matter of playing the fish until you’re landed. You can go higher or lower. It’s all in the game.

Somewhere along the line you might notice your IRS agent has an accent. Perfectly reasonable in a nation of immigrants. If the boiler room is like most I’ve heard, you should also detect conversational background noise. And if everyone has the same accent – you’re in trouble, Bubba. The IRS doesn’t restrict hiring to any one ethnicity. 🙂

Arrest warrant out for nuclear powerplant developer


“Don, honey, we can put the executive swimming pool over there”

Don Gillispie — who pitched a plan to build a nuclear power plant in Southwest Idaho until federal investigators accused his company of fraudulent activity — didn’t show up for two arraignment hearings this week in an ongoing criminal case.

The first time, on Tuesday, U.S. Magistrate Larry M. Boyle rescheduled the arraignment for Thursday, court documents state. When Gillispie also missed that hearing, prosecutors asked the judge to issue a warrant for Gillispie’s arrest, the U.S. Attorney’s Office confirmed.

Gillispie is accused of duping investors to buy stock in Alternate Energy Holdings Inc. (AEHI) at an artificially inflated price and then funnelling the money to himself and his company’s former vice president, Jennifer Ransom. Prosecutors could now charge him with failure to appear in the case. For one count, wire fraud, that could mean up to 10 additional years in prison if he is convicted…

Also, U.S. District Judge Edward J. Lodge reissued a judgment against Gillispie and AEHI in a several-year-old civil case brought by the U.S. Securities and Exchange Commission…

From the $14.6 million in investor money received, Gillispie and Ransom “received significant salaries and other compensation that they did not report as income to the Internal Revenue Service,” according to court files.

Do your due diligence, folks, before you invest a penny of your hard-earned income. If it sounds too good to be true, it probably ain’t.

How the IRS could do your taxes for you

Tax Day doesn’t have to suck — at least not this much.

The IRS knows what you make. It knows if you typically take the standard deduction. For a lot of Americans, the IRS could just fill out their taxes for them. It would save billions of dollars in tax preparation fees and hundreds of millions of hours spent filling out tax forms.

This isn’t some wild idea: it was piloted in California, where citizens loved it — 97 percent of those who used it said they would do so again. It’s how taxes work in Denmark, Sweden, and Spain…

Politicians ranging from President Obama to Ronald Reagan have supported this tax change — but there are some very rich companies and some very powerful activists standing in its way.

Intuit, the maker of TurboTax, is a particularly powerful opponent. Such a system “minimizes the taxpayers’ voice blah, blah, blah…”

But that excuse doesn’t hold much water. Under these automatic systems, no one has to let the IRS fill out their taxes for them. They can continue to do it by hand or by TurboTax, or hire an accountant. Intuit knows, however, that many fewer Americans would do their own taxes under this scenario, and that would be a big hit to Intuit’s bottom line.

Some anti-tax conservatives also hate the idea of the IRS filling out sample returns. Grover Norquist, president of Americans for Tax Reform, warns, “Conservatives, in particular, should see this ploy for what it clearly is: a money-grab by the government.” The easier and more efficient the tax system is, the more money it will raise, and the less public anger there will be for anti-tax conservatives to harness.

I’ve looked at samples and, frankly, come up with no difference in results. Plus a couple hours on a Sunday afternoon in February my wife and I usually spend cranking out a return — handed back to us.

Of course, regulation which ends up saving taxpayers and the government money and time is way too rational for Congress to consider. Especially when there are lobbyists with deep pockets who say the change is unnecessary and probably unAmerican.

Republican War on Women now demands rape audits

war on women

House Republicans are currently advancing the “No Taxpayer Funding For Abortion Act,” or HR 7, a measure that would impose sweeping restrictions on abortion coverage that could make the procedure less affordable for Americans across the country. In addition to preventing low-income women from using their Medicaid coverage to access abortion, HR 7 could also have dramatic implications for the tax code and the private insurance market. One of its most controversial provisions could actually require the Internal Revenue Service to conduct audits of rape victims.

Why? Because HR 7 eliminates medical-expense deductions for abortion care, essentially raising taxes on the women who opt to have an abortion. Like many abortion restrictions, this provision includes an exemption for victims of rape and incest, as well as women who encounter life-threatening complications from their pregnancies. But in order to enforce those exceptions, the IRS would have to verify that the women who are claiming a medical-expense deduction for an abortion fall into one of those three categories, to ensure they’re not committing tax fraud.

This is coming from the creeps who fund their politics on the basis of servicing corporate tax fraud.

Essentially, that would empower the government agency to have the final say over what “counts” as a sexual assault or a life-threatening situation. And that, in turn, would force victims to prove their case.

“Imagine having to recount a sexual assault — a horrifyingly painful, personal experience — to a tax collector,” NARAL Pro-Choice America says in an action alert to its members to encourage them to mobilize against HR 7. “An anti-choice bill in Congress would do just that. It could force sexual assault survivors who access abortion care to prove the assault occurred…”

But even when abortion restrictions do include some kind rape exception, as HR 7 does, the issues don’t end there. Exceptions for rape victims have some unintended consequences. They require some kind of system to separate the women who have become pregnant from sexual assault from the other women who want to end a pregnancy for a different reason. They essentially necessitate “rape audits.”

Today’s flavor of conservatism has rejoined 19th Century religious fundamentalism that still considers women to be nothing more than servants, obedient to the family patriarch. With politics to match.