DECLARATION OF KELLEY LYNCH
ADDENDUM TO IRS FORM 211
Kelley
Lynch declares:
1. I am a resident
of Los Angeles, California and over the age of 18, and have personal
knowledge of the facts set forth
hereinbelow and can competently testify thereto if called as a witness.
Describe the Alleged
Violation
2. On or about April 15, 2005, I reported
allegations that Leonard Cohen committed civil and
criminal tax fraud (as confirmed
by my legal and accounting representatives) to IRS Agent Bill Betzer in Los
Angeles, California. At that time, my
lawyers had reviewed corporate tax returns, corporate records, and other
relevant evidence. They concluded, with
respect to only one element of the egregious pattern of fraud, as follows:
“Civil Tax Penalties: There are over
150 civil penalties in the Code. They cover everything from the failure to file
or pay a tax, to accuracy-related penalties, to information returns, to special
penalties covering the activities of tax return preparers, tax shelter
activities and beyond: Focusing solely on the obvious, we see the following
potential problems with Traditional Holdings, LLC: (1) Accuracy Related
Penalties where the amount of the penalty is 20% of the underpayment, (2)
Substantial Understatement of Income Tax where the amount of the penalty is 20%
of the underpayment, (3) fraud where the amount of the penalty is 75% of the
portion of the underpayment attributable to the fraud, and (4) failure to pay taxes
due where the penalty is ½ of 1% for each month the tax is unpaid for a maximum
penalty of 25%. Applying these penalties and acknowledging that the math is
extremely rough, there is potential approximate tax liability as follows:
$880,000 for substantial understatement and accuracy related penalties;
$440,000 for fraud and $1,100,000 for failure to pay taxes for total penalties
of approximately $7,260,000. This does not include interest which, at a rate of
5% per annum compounded and without effective compounding, equals about
$650,000 for a total penalty and interest bill of $7,910,000. In addition, if
the transaction is unwound and LC is determined to be the owner of the assets,
he would have to pay tax on the sale which is the basis for the penalties and
interest which amounts to about $2,500,000 (state and federal combined). Thus
and in summary, at the end of the day, if the TH transaction is reported to the
IRS, Leonard Cohen will be liable for taxes on the sale in the sum of about
$2,5000,000, penalties of $7,260,000 and interest of $650,000 totaling
$10,410,000.”
“Additionally, among other issues,
there is a tax deficiency resulting from Cohen’s failure to report the income
from the Sony sale [approximately $8 million]; an affirmative act constituting
an evasion or attempted evasion of the tax; and willfulness involving, among
other things, the fact that Cohen caused the annuity obligation to disappear
from the 2003 federal tax return; Cohen’s failure to document and repay his
loans within 3 years as required [approximately $8 million]; and, Cohen’s
failure to report the sale of certain assets to Sony on the 2001 tax return.”
3. At some point in approximately the Spring
of 2005, I contacted the IRS Commissioner’s
Staff in Washington, DC. This was solely due to the tactics being used
against me which included an LAPD SWAT incident. The IRS Commissioner’s Staff in turn
contacted Agent Betzer. I also reported
this tax fraud to other agencies such as the Kentucky Revenue Cabinet and
California Franchise Tax Board.
4. As I have no training whatsoever in tax
law or accounting, it would be
impossible for me to describe
what the “alleged violation” is. Leonard
Cohen’s tax fraud appears to extend over decades, involves aggressive and
complicated strategies, and used off-shore accounts, shell corporations, and
sham transactions to achieve the desired result: either no taxes due or capital gains
treatment over ordinary income tax treatment.
5. As Leonard Cohen entered my personal
management offices and removed all of my records,
had the Los Angeles Sheriff’s
Department illegally seize corporate records and other relevant evidence, I
cannot say where any of that evidence ended up.
I have provided extensive evidence to IRS Commissioner’s Staff and
others. I would assume, as Cohen is
deceased, that all relevant and material evidence is in the possession of
Robert Kory and Michelle Rice who are Cohen’s representatives.
Are you involved with any
governmental or legal proceeding involving the taxpayer? Yes.
Explain in detail.
6. Since 2012, I have been relentlessly
targeted by the City Attorney of Los Angeles and
LAPD’s Threat Management Unit
over requests for federal tax information, attempts to comply with federal tax
laws, and falsely imprisoned and incarcerated over these and related
matters. At this time, the City Attorney
of Los Angeles, who has lied egregiously about federal tax matters, is
prosecuting me for allegedly requesting tax information from Leonard Cohen
prior to his death. Evidently, a
fraudulent state court restraining order nullifies and/or voids federal tax
laws and compliance with same or so the logic goes.
7. On or about March 1, 2015, I submitted the
attached declaration to the IRS Commissioner’s
Staff.
8. My RICO complaint, which was the subject
of a federal fee waiver issue, contains the
operative facts. The RICO suit will actually be filed at some
point in the future with the assistance of counsel.
9. This website (clearly created by Cohen’s
representatives refers people to Michelle Rice and
contains her email address) is
Leonard Cohen’s defense to the allegations of civil and criminal tax fraud and
documents the tactics employed. Every
document is fraudulent and/or perjured.
The note about the legal system is preposterous and I assume Bay Area
attorney Stephen Gianelli, who has functioned for years as Cohen’s operative, was
involved with the creation of this site.
LA Superior Court works beautifully for pathological liars, sycophants,
and misogynists.
10. All documents transmitted to Agent Luis
Tejeda by Robert Kory & Michelle Rice are entirely
fraudulent and perjured. I discussed this fact with Agent Tejeda
personally. Most of the documents can be
found in the so-called “IRS Binder” that was used against me by the City
Attorney of Los Angeles. It is evidently
evidence that I have been provided with form 1099 (for the year 2004) and forms
K-1 for the years 2004, 2005, 2006, and possibly other periods. Corporate tax returns related to numerous
corporations remain unfiled. I do not
have the relevant tax forms and will not rely upon the entirely fraudulent
expense ledger attached to Leonard Cohen’s equally fraudulent complaint in Los
Angeles Superior Court Case No. BC338322.
April 12, 2012
LASC Case No. 2CA04539, People v. Lynch
Lynch was convicted after a five-day jury trial of five counts of violating a court order (Pen. Code §273.6, subd. (a)) and two counts of making annoying telephone calls and sending annoying e-mails (§653m, subd. (b)) in Los Angeles Superior Court on April 12, 2012. Lynch's primary justification for her email and voicemail harassment was her assertion that she was simply seeking tax information that she needed to file her 2004 and 2005 tax returns. Specifically, she asserted that she needed form1099s from Cohen for 2004 and 2005. This issue was extensively considered at the criminal trial. The People presented a binder of communications (the "IRS Binder") that detailed the communications between Robert Kory and Lynch's accountant in 2004 and 2005, as well as Kory's communications with Luis Tajeda, head of the IRS fraud division for the western United States, responding to Lynch's assertions that Cohen had committed tax fraud. This binder established that Lynch already had in 2005 the tax information that she requested, and that the IRS was not pursuing Cohen for tax fraud. Judge Robert Vanderet ruled that Lynch's alleged justification based on a need for tax information was irrelevant and that testimony by Tejeda would not add anything new to what had been presented by Lynch's public defenders.
Lynch was convicted after a five-day jury trial of five counts of violating a court order (Pen. Code §273.6, subd. (a)) and two counts of making annoying telephone calls and sending annoying e-mails (§653m, subd. (b)) in Los Angeles Superior Court on April 12, 2012. Lynch's primary justification for her email and voicemail harassment was her assertion that she was simply seeking tax information that she needed to file her 2004 and 2005 tax returns. Specifically, she asserted that she needed form1099s from Cohen for 2004 and 2005. This issue was extensively considered at the criminal trial. The People presented a binder of communications (the "IRS Binder") that detailed the communications between Robert Kory and Lynch's accountant in 2004 and 2005, as well as Kory's communications with Luis Tajeda, head of the IRS fraud division for the western United States, responding to Lynch's assertions that Cohen had committed tax fraud. This binder established that Lynch already had in 2005 the tax information that she requested, and that the IRS was not pursuing Cohen for tax fraud. Judge Robert Vanderet ruled that Lynch's alleged justification based on a need for tax information was irrelevant and that testimony by Tejeda would not add anything new to what had been presented by Lynch's public defenders.
IRS Binder
11. At this point, we are basically in the
cover up portion of the civil and criminal tax fraud.
I declare under penalty
of perjury under the laws of the State of California that the foregoing is true
and correct.
______________________________________
Kelley
Lynch
[i] I have submitted numerous versions of
form 211 (addendum), including more complex narratives, to the IRS
Commissioner’s Staff. This is the final
version signed under the penalty of perjury.
