Sunday, November 30, 2014

Kelley Lynch's Email To Cohen's Lawyer Re. Corporate Asset Valuations

From: Kelley Lynch <>
Date: Sun, Nov 30, 2014 at 3:32 PM
Subject: Re: Designated tax partner?
To: Jeffrey Korn cc:  IRS, FBI, DOJ, FTB & Multiple Recipients


Let me explain another reason I need this information.  Cohen's complaint states that Richard Westin did not file state tax returns in Kentucky.  I have no idea what he did in Kentucky.  The Complaint does not address why Richard Westin failed to reinstate Traditional Holdings, LLC when it was discovered that it was suspended in Kentucky.  This particular entity was established for, as your client testified, some tax purpose.  I have no idea what that means but that was his testimony.  What assets is the judgment addressing?  I don't have balance sheets and neither does LA Superior Court.  It has a [fraudulent] ledger.  I've posted below the accounting equation used on a balance sheet.  Did Cohen simply remove corporate assets?  Leonard Cohen doesn't own corporate or LLC assets.  The Complaint sets forth Cohen's former assets from what I can tell.  LCSMI was sold to Sony in 1996.  I was under the impression that BMT owned the recording contract and writer's royalties.  There are other assets as well.  What assets precisely is the default judgment addressing.  Clearly, Leonard Cohen personally cannot simply remove assets from a corporation that he is not the sole owner of.  LCI doesn't own assets.  TH doesn't own assets.  The attempts to assign the assets failed because BMT owns the assets.  Why isn't Old Ideas, LLC included in this complaint?  I can assure you that for tax purposes, this judgment resolves NOTHING.  It creates egregious criminal tax fraud in and of itself.  I have no doubt IRS and FTB are able to figure that out.  It is evidence of theft.  Nevertheless, I have to value the theft so I await your response.  LAPD's TMU does not have an accounting or tax unit from what I can tell.  At least not for ordinary citizens.

Kelley Lynch

Cohen:  It wasn’t – it was – it was created in some – some tax purposes. [Response to TH business purpose]

The accounting equation is the mathematical structure of the balance sheet. It relates assets, liabilities, and owner's equity:

Assets = Liabilities + Capital (where Capital for a corporation equals Owner's Equity)
Liabilities = Assets - Capital
Capital = Assets - Liabilities

That is, the total value of a firm's Assets are always equal to the combined value of its "equity" and "liabilities."

Assets are listed on the balance sheet. In a company's balance sheet certain divisions are required by generally accepted accounting principles (GAAP), which vary from country to country.  Assets can be divided into e.g. current assets and fixed assets, often with further subdivisions such as cash, receivables and inventory.

Kentucky Entity (Traditional Holdings, LLC)

What are the proper steps in closing a corporation to avoid later problems and billings?

When the return is filed clearly mark the box as a final return. For the return to be accepted as final the corporation should attach a balance sheet reflecting zero assets. The final Corporation Income and Limited Liability Entity taxes must be paid with the return. The corporation must also timely close their account with the Secretary of State by filing Articles of Dissolution.