From: Kelley Lynch <kelley.lynch.2010@gmail.com>
Date: Thu, Dec 11, 2014 at 11:14 AM
Subject:
To: Jeffrey Korn cc: IRS, FBI, DOJ, FTB
Jeffrey,
Regardless of your client's fascinating interpretations of IRS laws, corporations have to file returns. Please refer again to the Indemnity Agreement I asked for and received from Leonard Cohen with respect to Traditional Holdings, LLC.
The default judgment was entered in May 2006 and, even if your client continues to lie about this, I was not served the lawsuit and the judgment is void.
The judgment does not say anywhere that Leonard Cohen can fail to file tax returns for these entities in 2004 or 2005. Leonard Cohen seems to think that he is entitled to conduct himself in any way he sees fit. That is not the case with respect to partnerships and/or corporations. I would also like to point out again that Blue Mist Touring owns the intellectual property assets that were collected by LCI and others. Does your client think the non-revocable assignments were a mistake? All corporate books and records were a mistake? Federal tax returns are a mistake but were not amended?
I disagree. I will ask Judge Hess to explain where LA Superior Court obtains authority to cause me to commit tax fraud by failing to file returns. Maybe he has some thoughts - particularly with respect to years not included in the default or referenced. The judgment is also fraudulent because my ownership interest in numerous entities was not for Cohen's benefit and theft is not legal.
Kelley Lynch
Partnerships
Limited liability companies that you designate as a partnership for tax purposes must provide the IRS with an informational tax return on Form 1065 and a Schedule K-1 attachment for each LLC member. This filing requirement remains effective for any tax year the LLC has no business activity or income. When you prepare the return, you can simply enter zeroes for revenue and expenses. Unless you file Form 7004 for an automatic six-month extension of time to file, the IRS will impose an $89 -- current as of November 2010 -- per-partner penalty for each month you file the return after its due date. Schedule K-1 reports each member’s share of partnership profits and losses. The IRS will impose an additional penalty of $50 per month for each K-1 you fail to attach to the return by the due date.
Filing Requirement
The instructions for Internal Revenue Service Form 1120, the standard tax return for corporations, are quite clear: All corporations based in the United States "must file an income tax return whether or not they have taxable income." The same rule applies to partnerships and limited liability companies that have elected to be taxed like corporations. The only exceptions are for corporations exempt from tax under Section 501 of the Internal Revenue Code. Those include charities, foundations and other nonprofit institutions -- and even they must file returns if they have certain kinds of income.
