From: Kelley Lynch <kelley.lynch.2010@gmail.com>
Subject: Traditional Holdings, LLC - 2001, 2002 and 2003 federal tax returns
To: IRS, FBI, DOJ, FTB cc: Multiple Recipients
Hi IRS,
How do you reconcile the information sent Agent Tejeda (Complaint, fraud ledger, etc.) with the federal TH tax returns, illegal K-1s issue by LCI to me (transmitted to IRS and State of Kentucky), etc.? I want these returns amended. I want to be removed from the TH federal tax returns. I want an explanation as why there is a State of Kentucky tax return attached to the 2003 federal return when one was not filed. I want an explanation for why I was fraudulently induced into entering into these agreements and why my SSN appears on so many federal tax documents. What was the mistake that Cohen testified about? The mistake is that I did not pick up the phone and call the Ogden, Utah IRS agent when he audited the $1 million prepayment and invite the man into my office to review the evidence and talk to me about my concerns. That was my thought at the time and I changed my mind when the IRS resolved the situation with Cohen. That is the mistake from my point of view. The rest appears to be an attempt to cover up very serious criminal tax fraud and obstruct justice.
I didn't realize I had to sue for IRS required tax and corporate information. I do not see where the judgment advises Cohen that he has no obligation to provide me with IRS required tax information. I cannot find one law to support LAPD's theory that a state order subverts IRS reporting requirements and the Supremacy Clause i the U.S. Constitution. Evidently, Judge Vanderet (who concealed IRS Agent Tejeda from the jurors) has a different on the law. He also lies. I will say one thing - I have never seen such neurotic, discursive, or aggressive conduct in my life and it's incredible that these men and women sit in judgment of anyone.
All the best,
Kelley
EXHIBIT
TRADITIONAL HOLDINGS, LLC
FEDERAL TAX RETURNS 2001, 2002, 2003
Now, you were aware that 99.5% of that company was owned by Ms. Lynch, correct? Cohen: That was a mistake and it was rectified by the lawyer who drew up the papers. And in arbitration a substantial sum of money was awarded me for his mistake. PD: And that lawyer’s name? Cohen: Richard Westin. PD: And you had arbitration with him? Cohen: That’s correct. PD: And when did you have that arbitration? Cohen: I don’t remember the exact date. I think it was perhaps 2007. PD: Now, you learned in 2004 that your – that the account – that Traditional Holdings account, the money – that you were running low, correct? Cohen: It was running low – PD: That funds in that account, that Traditional Holdings account, they were running low, yes or no? Do you remember that? Cohen: I - I discovered that they were being dissipated. PD: Okay. Now, you panicked correct? Cohen: I was concerned, yes. PD: And in fact you had actually taken money from that account to buy homes, correct? Cohen: Yes, I had. PD: You took money from that account to buy a house for your son, correct? Cohen: That’s correct. PD: To buy a house for your girlfriend? Cohen: Yes. Kelly: Okay. So you -- it’s fair to say that you did take money from that account? Cohen: That’s correct, Sir. PD: You were aware enough about that account to know that you could take money from that account? Cohen: That’s correct. RT 285-288
2001 Return dated 03/05/2002
Signed by Preparer Richard Westin
Gross Receipts or Sales: Nothing noted in box 1(a). According to Cohen’s Complaint, the Traditional Holdings, LLC/Sony sale was finalized in 2001 and the gross proceeds totaled $8 million.
Total income listed on this particular return is $214,506.
Westin listed Kelley Lynch (using her SSN) as the “Name of designated Tax Matters Partner.”
Page 4 notes that there is a trade note of $240,025.
Other expenses include $14,250 legal fees to Richard Westin; $30,450 (CAK settlement?); and $330 that is not explained. Other professional fees total $75,000 but are not explained.
Schedule 6 shows “Dividends $99,506.”
Schedule K-1 Kelley Lynch (using her SSN) indicates that Lynch has a 99.6% ownership interest in the partnership and is entitled to 99.6% of profits/losses.
Lynch’s income for the year 2001, per this particular return, is listed as $74,330. Lynch’s capital account shows $240,000.
Schedule 9A lists loans to Leonard Cohen in the amount of $1,255,000. This amount does not appear to include the $1 million Cohen personally received in 1999 from Sony or recoupment amounts, etc.
Schedule K-1 Leonard Cohen indicates that Cohen has a .4% ownership interest in the partnership and is entitled to .4% of profits/losses.
Cohen’s income for the year 2001, per this particular return, is listed as $246. Cohen’s capital account shows $25.
2001 Return dated 03/09/2002
Signed by Preparer Richard Westin
Gross Receipts or Sales: Nothing noted in box 1(a). According to Cohen’s Complaint, the Traditional Holdings, LLC/Sony sale was finalized in 2001 and the gross proceeds totaled $8 million.
Total income listed on this particular return is $174,506.
Westin listed Kelley Lynch (using her SSN) as the “Name of designated Tax Matters Partner.”
Page 4 notes that there is a trade note of $240,025.
Other expenses include $14,250 legal fees to Richard Westin; $30,450 (CAK settlement?); and $330 that is not explained. Other professional fees total $75,000 but are not explained.
Schedule 6 shows “Dividends $99,506.”
Schedule L8 “Other Investments” shows loan to member of $50,000. The $1,255,000 loan to Leonard Cohen has disappeared.
Schedule K-5-A lists Kelley Lynch, her SSN, and states “Owns over half the equity.”
Schedule K-1 Kelley Lynch (using her SSN) indicates that Lynch has a 99.6% ownership interest in the partnership and is entitled to 99.6% of profits/losses.
Lynch’s income for the year 2001, per this particular return, is listed as $149. There is a note in Westin’s handwriting under “Capital account at beginning of year” that states: Error – should be 240,000.
Schedule K-1 Leonard Cohen indicates that Cohen has a .4% ownership interest in the partnership and is entitled to .4% of profits/losses.
Cohen’s income for the year 2001, per this particular return, is listed as $149. Cohen’s capital account shows $25.
Blank schedule attached lists the following:
Allocations with respect to 2001 return of TH, LLC - $74,576 income.
Kelly has class B preference $24,000 for 2001 and $855 for 13 days in 2000.
That leaves $49,721.
Of that 1% goes to Kelley as B owner for $497.
That leaves $49,224 for Class A shares.
Of that 99.5% goes to Kelley: $48,978.
$246 goes to Leonard.
Total: KL $74,330; LC $246
I began the capital accounts at $25 and $240,000 respectively.
2002 Return dated 10/02/2003
Signed by Preparer Richard Westin
Gross Receipts or Sales: Nothing noted in box 1(a).
Total income listed on this particular return is $2,492,000.
Guaranteed payments to partners: $88,000.
Westin listed Kelley Lynch (using her SSN) as the “Name of designated Tax Matters Partner.”
Page 4 notes cash - $5,0986,323.
Schedule L8 to form 1065. These assets are loans to members at FMV rates of interest.
Schedule K-1 Kelley Lynch (using her SSN) indicates that Lynch has a 99% ownership interest in the partnership and is entitled to 99% of profits/losses.
Lynch’s income for the year 2001, per this particular return, is listed as $99,816.75 (ordinary income); $5,874.66 (interest); $15,154.55 (ordinary dividends); $87,120 (guaranteed payments to partner). NOTE: $88,000 was paid to KL for promissory note payments (per corporate records) and she paid this to TH (via Greenberg).
Schedule K-1 Leonard Cohen indicates that Cohen has a 1% ownership interest in the partnership and is entitled to 1% of profits/losses.
Cohen’s income for the year 2001, per this particular return, is listed as $1,008.25 (ordinary income); $59.34 (interest); $153.07 (ordinary dividends); $880 (guaranteed payment to partner – this is not a payment to Cohen as the entire $88,000 related to promissory note payments).
2003 Return dated 09/29/2004
Signed by Preparer Richard Westin
Nothing whatsoever on the first page.
Kelley Lynch (using her SSN) is listed as the Tax Matters Partner.
Schedule L8 evidently lists loans of $2,040,156.
K-1 for Kelley Lynch. 99.55% ownership interest and 99.5% profit/loss sharing.
Shows over $300,000 in income. (NOTE: KL paid taxes on that income in 2003.)
K-1 for Leonard Cohen. .45% ownership interest and .45% profit/loss sharing.
Kentucky Partnership Income Return attached although it was evidently never filed with Kentucky.
