Re: Tobacco Industry State & Federal Income Tax Fraud and Tobacco

Dear Harvey Rosenfield,

As the head of what is probably the largest state Taxpayers organization

in the country, we felt it was proper protocol to contact you first in our

newest correspondence campaign to teach and assist Taxpayer organizations and

their memberships in the various issues of NON-health related tobacco

industry Fraud & False Claims.

A couple of these issues, federal and state tobacco industry income tax

fraud, have been brought to the attention of the IRS via a meeting with one

of their Special Agents, multiple Form 211 Filings, Email and "hard copy"

correspondence and via an offering of The Shuster Project web site as a

reference resource for them to utilize...all with a startling series of

results.

In the first and only face-to-face sit-down meeting with an IRS Special

Agent, myself and one of the law firms involved in The Shuster Project

responsible for these tax fraud issues, the Special Agent acknowledged that

the IRS had no previous knowledge of the tobacco companies income tax fraud

as we were revealing it by providing them with the actual tobacco industry

document, central as the fraudulent accounting instrument, that makes it

possible to actually track the entire income tax fraud down to the exact

penny defrauded.

The IRS Special Agent acknowledged that they were completely unaware of

this document's existence, as well.

The IRS Special Agent also acknowledged that our conservative estimate

of approximately 25 Million Dollars as the "base" income tax revenue loss

figure going back approximately 20 years of the over 45 years this fraud has

been going on was, as he put it "...much too low of an estimate."

We do not argue with him on that.

He estimated, taking into account just the various political

subdivisions of the federal government - Social Security - FICA -

Medicare/Medicade - and their various applications of interest and penalties

(not including states political subdivisions in those states with state

Income Tax provisions) rearrange the dollar amount of the total to be

recovered upwards of between $600-$800 MILLION Dollars, give or take some

tens of Millions of dollars.

Special Agent Joe Patoka, Jr. was clearly exasperated that such income

tax fraud had occurred for such a long time and had gone undetected by the

IRS until we contacted them and sat down with them, as I had specified it had

to be arranged to be done for historical reference of these issues being

brought before them with no future dispute as to any of the facts as we

presented to them.

This entire IRS saga continues to be illustrated in The Shuster Project

web site at:

http://rxshuster.org/federal.htm

It now appears that the IRS is attempting to disavow all of the

acknowledgments we received at our meeting for what we suspect are just two

or three reasons.

The first, of course, might be considered the obvious one...the IRS

having to make a public acknowledgment that the tobacco companies have

successfully been engaging in the corporate fraud of federal (and state)

income tax fraud, income tax evasion of almost $1-$3 BILLION Dollars going

back over 45 years that the IRS never caught on to and where it was presented

to them, including the exact tobacco company document that reveals it, by a

"regular citizen" and not one of "their own" investigators who, perhaps,

should have.

Secondly, that perhaps in this time of tobacco industry massive

settlements, the IRS feels it's somehow a more prudent decision to allow this

federal and state income tax fraud to continue rather than to also be seen as

correctly getting involved with tobacco industry litigation to address

multiple Billion dollar tax revenue embezzlement?

Thirdly, that perhaps the IRS is binding up in the area of establishing

the simple allocation of personnel needed to review the tens of thousands of

tobacco field employees which is where the tobacco companies utilized the

"offending/defrauding" contingency form document:

http://rxshuster.org/contigen.htm ...and simply prosecute the tobacco

companies as to their individual defrauded income tax revenue totals.

Incidentally, in the areas I have directed you to in The Shuster Project

web site, you will see that we give a maximum, conservative estimate of

approximately $100 Million Dollars for the 20 year income tax fraud revenue

loss total.

Because we do not know how each various political subdivision of either

the federal government or state governments with income tax provisions will

apply them to each of the offending tobacco companies, which are all of them,

we felt it safe to stay safely within conservative estimates and not flail

irresponsible and sensationalistic figures about.

It is also important to note that this specific income tax fraud

continues to this day as a result of the IRS neither intervening nor

prosecuting these crimes.

It is also worth noting that due to the negligence of the IRS, this

specific income tax fraud at the state level continues to this day due to the

shameful absence of IRS intervention in order to prevent it from occurring on

a daily basis.

I've given you plenty to absorb in this writing, and will utilize this

correspondence as the model by which I send other correspondence to even more

Taxpayer organizations.

If you have any questions, please feel free to contact me directly.

My contact information is clearly indicated in our main web site entry

page, probably making me the most accessible tobacco issues web site on the

entire Internet.

There is a lot of corrective work that needs to be done to restore the

lost federal and state income tax revenues back to the people and it seems

that "people" organizations rather than the IRS, at least in this first stage

of making these fraudulent activities and the huge sums that have been

defrauded from the people become public knowledge, are going to be the ones

that make that difference and that force the needed corrections.

The income streams that begin to generate from just these 2 fraudulent

activities by the tobacco companies will be hundreds of millions of dollars

spread out over the 50 states.

There are dozens of fraudulent activities that we will begin to roll out

into The Shuster Project web site as time goes on.

But we are focusing on making sure that these first, large ticket items

of huge sums being defrauded from the people are properly addressed before we

bring out even more.

I hope you will make The Shuster Project web site known to your membership

for the various Grassroots efforts and interactive tools it provides people

to address these issues.

And I certainly hope that you will take the time to review The Shuster

Project and participate with us in making sure the corrections to the federal

and state income tax fraud and states sales tax fraud become realities that

can only generate tens of millions of dollars in "new" state tax revenues

that can go back to the people, where it belongs.

As is our custom, this letter will soon be placed into our Correspondence

2000 Page for public review.

A "hard copy" of this email will be sent by regular USPS tomorrow to:

Harvey Rosenfield

c/o

The Foundation for Taxpayer & Consumer Rights

1750 Ocean Park Blvd. Suite 200

Santa Monica, CA 90405

I look forward to hearing from you soon.

The Shuster Project

The First NON-Health Related Tobacco Issues Web Site To Actually HELP YOU To

Make A Difference Against Fraud & False Claims In The Tobacco Industry.

JOIN THE FIGHT AGAINST TOBACCO INDUSTRY FRAUD!

Go To:

http://rxshuster.org/survey.htm

and sign the Petitions!