From: Kelley Lynch <kelley.lynch.2010@gmail.com>
Date: Thu, Nov 6, 2014 at 4:50 PM
Subject: Re: California Central District Court, Case No. 2:05-cv-06047
To: Jeffrey Korn <jeffkornlaw@live.com>, "irs.commissioner" <irs.commissioner@irs.gov>, Washington Field <washington.field@ic.fbi.gov>, ASKDOJ <ASKDOJ@usdoj.gov>, "Division, Criminal" <Criminal.Division@usdoj.gov>, "Doug.Davis" <Doug.Davis@ftb.ca.gov>, Dennis <Dennis@riordan-horgan.com>, rbyucaipa <rbyucaipa@yahoo.com>, khuvane <khuvane@caa.com>, blourd <blourd@caa.com>, Robert MacMillan <robert.macmillan@gmail.com>, a <anderson.cooper@cnn.com>, wennermedia <wennermedia@gmail.com>, Mick Brown <mick.brown@telegraph.co.uk>, woodwardb <woodwardb@washpost.com>, "glenn.greenwald" <glenn.greenwald@firstlook.org>, lrohter <lrohter@nytimes.com>, Harriet Ryan <harriet.ryan@latimes.com>, "hailey.branson" <hailey.branson@latimes.com>, "stan.garnett" <stan.garnett@gmail.com>, police <police@cityofberkeley.info>, sedelman <sedelman@gibsondunn.com>, JFeuer <JFeuer@gibsondunn.com>, "kevin.prins" <kevin.prins@ryan.com>, Sherab Posel <poselaw@gmail.com>, rwest0@gmx.com, "steve@blottermusic.com" <steve@blottermusic.com>, "steve@radicalmusic.com" <steve@radicalmusic.com>
Hi IRS,
I'm reviewing your website. Richard Westin advised me and Cohen that all shareholder loans must be repaid with 6% interest. I was advised that anything that was a shareholder loan related to me had to be repaid before the annuity obligation was due. Westin was going to recharacterize all shareholder loans. I do not know what that means. I was clear with Cohen, and Westin wrote and agreed with what I advised Cohen in the January 2002 email thread, that I DO NOT handle IRS tax, accounting, loan, or corporate matters. There were agreements and one of those agreements is the Annuity Agreement that Cohen signed. Evidently, he doesn't agree with two paragraphs: the one where he agrees to repay his loans/expenditures with interest and the one confirming that this entity bypasses his estate. It's a simple two page agreement that we read together and signed.
There is no typo in the management agreement and Westin explains the $240,000/year amount to Cohen in the March 2002 letter I asked Westin to prepare and which Cohen has acknowledged receiving. Now, they are attempting to say it is a typo. The $24,000 and $20,000 per year payments were allocated for the
$44,000 promissory note repayment amounts. Westin also explained that in writing to Cohen. The profit and loss sharing is addressed in the corporate records and is distributed according to ownership interest.
The IRS defines a partnership as two or more people. Cohen's declaration, that i just emailed Korn, confirms that he owns 100% of LCI. Neverhtless, I am sitting here with IRS transcripts and State of Kentucky information proving that LCI transmitted K-1 partnership documents to these tax authorities in 2003, 2004, and 2005
showing $0 income. The fraud ledger contains income. Which document does the IRS believe since both were transmitted to you and are on my IRS account? I've addressed the TH K-1s transmitted to IRS and others for the years 2001, 2002, and 2003 proving I am a partner and indicating income. Why did I pay taxes
on those amounts if I wasn't a partner? Were these charitable donations? How much phantom income was shifted to me but not distributed?
Why, during my 2012 trial, did Streeter lie about all of this and fraudulently advise the jurors that TH only had assets of $100K to $150K. One juror confirmed that he relied on that information which is illegal. Why wasn't that brought to the judge's attention? Why didn't my court appointed lawyers file a motion advising the judge
that one of them felt there was a prosecution plant on the jury. Why didn't Vanderet permit my lawyers to attack the fraudulent order? Why didn't he permit Agent Tejeda to take the stand I had no idea about the refunds and only found out in December 2013 that Cohen also received a fraud refund from FTB which I spoke to
their fraud unit about.
It seems to me that all the tax authorities are taking this situation seriously. Why are Cohen, his lawyers, and Sandra Jo Streeter lying about these matters? Why are federal tax matters being argued before LA Superior Court?
I do not know why Wesitn handled the TH tax returns in the manner in which he did. I was not present when he, as Cohen's lawyer, met with Cohen, Ricardo Cestero of Greenberg, Glusker, met with my lawyers. I have no idea what was discussed. I know, after receiving my lawyers' October 27, 2004 letter, they came up with a
novel defense: accuse me of receiving overpayments while WILLFULLY DISREGARDING all corporate records, tax returns, etc.
It must be high stakes. So many politicians, prosecutors, judges, and law enforcement in LA Confidential are involved and people are criminally harassing me and everyone I know. In any event, I am going through Joel Feuer's inane Exhibit A. Cohen's accounts were NOT looted. A corporate account is not Leonard Cohen's personal account. It's very strange that Gibson, Dunn is unaware of that fact. I would like an opinion on this: when can LA Superior Court willfully disregard corporate records and corporate ownership interests and wrongfully convey my property to Leonard Cohen? I don't think they ever can. That would be aiding and abetting theft. Furthermore, I was NOT served and I do not care what the judge argued on behalf of Leonard Cohen.
I think they just feel that they can crush me legally with their tactics. That's all they have: tactics. And then everyone lies on the witness stand and in legal documents. One lie covers another lie. The evidence and facts are irrelevant. The judges are lying. It's revolting. Beyond that, there seems to be some "domestic violence" scam taking place that demands an investigation. Fortunately, a law librarian understood the issue yesterday. Cohen and his paid witness/lawyers understood they were dealing with the "domestic violence" Unit and I was being prosecuted under the domestic violence statute although the Boulder order isn't domestic violence. Cohen and I were NOT in an intimate dating relationship. Sexual harassment and indecent exposure are not a dating relationship. Only the "City Attorney of Los Angeles" and jurors who cannot figure out how to get off of jury duty would believe that. The jurors wanted to hear from IRS so clearly they believed they were hearing an IRS case. That's what my appellate attorney believes. He also believes that Streeter engaged in criminal obstruction of justice and there was a criminal conspiracy to destroy evidence.
I am simply dealing with corruption and Cohen's defense to the allegations that he committed criminal tax fraud. I had unfettered control of nothing. No one caused Cohen to pursue IP deals. The notion is absurd. Speak to every single one of his representatives. Ask the Grubman firm and Greg McBowman if they engaged in fraud in the inducement as Kory suggested in his memo to my lawyers with Ira Reiner and Kevin Prins copied in. Ask Prins why, as an accountant, he believes I am a partner on the federal tax returns and phantom income was shifted to me but not distributed. I would like the IRS' opinion on the meaningless list of numbers that is being referred to as an accounting. Where is the back-up documents - ie., royalty statements, checks, bank statements, agreements, etc? Are they all mistakes?
All the best,
Kelley
IRS - PARTNERSHIP:
A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.
A partnership must file an annual information return to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it "passes through" any profits or losses to its partners. Each partner includes his or her share of the partnership's income or loss on his or her tax return.
Partners are not employees and should not be issued a Form W-2. The partnership must furnish copies of Schedule K-1 (Form 1065) to the partners by the date Form 1065 is required to be filed, including extensions.
If you are a partnership or a partner (individual) in a partnership, use the information in the charts below to help you determine some of the forms that you may be required to file.
Paying Yourself
The procedures for compensating yourself for your efforts in carrying on a trade or business will depend on the type of business structure you elect. Below are topics that frequently arise when new business owners ask the Internal Revenue Service questions about paying themselves.
- Corporate officers
- Partners
- Dividend distributions
- Form 1099-MISC or Form W-2
- Treating employees as nonemployees
- Shareholder loan or officer s compensation?
- Reasonable compensation
- Draw account
- Corporate officers
An officer of a corporation is generally an employee, but an officer who performs no services or only minor services, and who neither receives nor is entitled to receive any pay, is not considered an employee. Refer to "Who Are Employees?" in Publication 15-A, Employer's Supplemental Tax Guide (PDF).
Partners
Partners are not employees and should not be issued a Form W-2 in lieu of Form 1065, Schedule K-1, for distributions or guaranteed payments from the partnership. Refer to partnerships for more information.
Dividend distributions
Any distribution to shareholders from earnings and profits is generally a dividend. However, a distribution is not a taxable dividend if it is a return of capital to the shareholder. Most distributions are in money, but they may also be in stock or other property. For information on shareholder reporting of dividends and other distributions, refer to Publication 550, Investment Income and Expenses.
Form 1099-MISC or Form W-2
You cannot designate a worker, including yourself, as an employee or independent contractor solely by the issuance of Form W-2 or Form 1099-MISC. It does not matter whether the person works full time or part time. You use Form 1099-MISC, Miscellaneous Income (PDF) to report payments to others who are not your employees. You use Form W-2 to report wages, car allowance, and other compensation for employees.
Treating employees as nonemployees
You will be liable for social security and Medicare taxes and withheld income tax if you do not deduct and withhold them because you treat an employee as a nonemployee, including yourself if you are a corporate officer, and you may be liable for a trust fund recovery penalty. Refer toPublication 15, Circular E, Employer's Tax Guide for details about the trust fund recovery penalty orIndependent Contractor for more information on employee classification.
Shareholder loan or officer's compensation?
A loan by a corporation to a corporate officer should include the characteristics of a loan made at arm's length. That is, there should be a contract with a stated interest rate, a specified length of time for repayment, and a consequence for failure to repay the loan. Collateral would also be an indication of a loan. A below-market loan is a loan which provides for no interest or interest at a rate below the federal rate that applies. If a corporation issues you, as a shareholder or an employee, a below-market loan, the lender's payment to the borrower is treated as a gift, dividend, contribution to capital, payment of wages, or other payment, depending on the substance of the transaction.
See "Below-market interest rate loans" under Employees' Pay / Kinds of Pay / Loans or Advances in Publication 535, Business Expenses for more information.
Reasonable compensation
Because an officer of a corporation is generally an employee with wages subject to withholding, corporate officers may question what is considered reasonable compensation for the efforts they contribute to conducting their trade or business. Wages paid to you as an officer of a corporation should generally be commensurate with your duties. Refer to "Employee's Pay, Tests for Deducting Pay" in Publication 535, Business Expenses for more information. Public libraries may have reference sources that provide averages of compensation paid for various types of services. The Internal Revenue Service may determine that adjustments must be made to the income and expenses of tax returns for both the corporation and an individual shareholder if the officer is substantially underpaid for services provided.
Draw account
If you are a sole proprietor or partner in a partnership, the money or other forms of payment you take from your business should be accounted for in a draw account. This helps you know what amount of benefits you have taken from the business during the year. You cannot deduct the sole proprietor s own salary or any personal withdrawals made from the business.
