Dear Larry,

Neither myself nor any of my staff are currently members of CalTax, as

we are based in Connecticut.

However, as our current correspondence campaign is centered towards

Taxpayer organizations across the country, we felt that as you are probably

the single largest state taxpayer organization in the U.S., it was

appropriate to contact you first relative to the issues of tobacco industry

State Income Tax fraud and State Sales Tax Fraud and show you how you and

your membership are "subsidizing" these defrauded revenues to this very day.

Both our Mission Statement and Profile information are clearly displayed

on the entry page to The Shuster Project at:

http://www.rxshuster.org

You will also see my pertinent personal and contact information on that

page, including the fact that I have 17+ years experience within the tobacco

industry and was witness to the above stated fraudulent activity and much

more.

In keeping with your stated mission to "protect taxpayers from

unnecessary taxes and to promote efficient, quality government services," we

know you will have a direct interest in the topic and content of our

correspondence to you this day.

The tobacco industry policy, practice and procedure of ritualistic State

Income Tax Fraud is clearly explained in this chapter of The Shuster Project

web site:

http://rxshuster.org/contigen.htm

...providing you with the actual tobacco company contingency form that

will trace each and every instance of when this State Income Tax Fraud

occurred, by virtue of the "handed-off" increased value of every tobacco

product price increase and it's conjoined contingency fund "value" increase

that went unreported ... tens upon tens upon tens upon tens of thousands of

times not only in California but, to a lesser extent, in every state across

the entire country.

Early on in 1998, we had brought this issue of State and Federal Income

Tax Fraud by the tobacco companies directly to the IRS via an arranged-by-us,

face-to-face meeting with one of the IRS Special Agents based here in

Connecticut.

You can learn more about that ongoing saga by going to this section of

The Shuster Project:

http://rxshuster.org/federal.htm

What's important to know about the IRS involvement in this is that they

initially acknowledged three important things at that meeting:

1.) That our conservative estimates of just the federal Income Tax Fraud

being perpetrated by the tobacco companies exceeded well over $600-$800

MILLION Dollars once all of the political subdivisions of the federal

government (FICA - Social Security - Medicare/Medicade - Unemployment

deductions and the others) applied their various protocols of penalties and

interest going back the over 45-50 years this Income Tax Fraud occurred and

continues to occur to this very day.

2.) That the IRS was completely unaware that this federal (and state)

tobacco industry Income Tax Fraud was even taking place. The Special Agent

was exasperated that this Income Tax Fraud is happening right under the nose

of the IRS (his words, not ours) and acknowledged that our contingency fund

document clearly showed the exact method and vast sums involved right to the

penny and traced the actual timeframe of the Income Tax Fraud. He also

acknowledged that they had no prior knowledge of this contingency form and

had no other tobacco industry document(s) that ever revealed this Income Tax

Fraud scheme until we supplied them with the one we have.

3.) That NO investigation into the tobacco industry for Income Tax Fraud

was occurring nor had ever occurred based upon the information we supplied to

them that day. He also "seemed" quite eager to partner with us to prosecute

this information immediately.

And so we at The Shuster Project, after filing numerous Form 211s,

several times now to no avail in terms of the IRS following through with its

promises and commitments to prosecute this fraud and prevent it from

continuing, are now witness to and subjected to the attempted process of

being disavowed by...the IRS!

We now know at The Shuster Project that other people and other

organizations than the IRS, organizations like yours, will be the ones who,

in conjunction with what we are doing, will actually bring about the halt to

this tobacco industry Income Tax Fraud.

We also know that other people and other organizations like yours need

to be instrumental in demanding the necessary legislative corrections to

finally implement the correct state and federal Income Taxes back to the

tobacco companies rather than having each of the states citizens and

businesses SUBSIDIZE the tobacco companies for the $1-$3 BILLION Dollars

already defrauded collectively from all of the 50 states and the amounts that

continue to be defrauded while this Income Tax Fraud is allowed to continue

unabated.

For the first year The Shuster Project has been online, we have

directed our efforts and approach to state legislators, states attorneys

general, the heads of national organizations like the NAACP, NOW and others

and have come to find their concerns towards their memberships actually,

unwittingly subsidizing BILLIONS of dollars of tobacco industry Income Tax

Fraud revenues at both the state and federal levels to be waning to

nonexistent.

and the CORRESPONDENCE 2000 pages that can be accessed from our main entry

web page.

It is our hope that you make The Shuster Project web site known to your

membership for the Grassroots Efforts and interactive tools we provide to

empower ordinary citizens to actually engage the tobacco companies in ways

the tobacco industry wouldn't expect and in the manner that we teach issues

of tobacco industry Fraud & False Claims that are indefensible by the tobacco

companies, like these State and Federal Income Tax Fraud Issues.

It is also our hope that you review closely the contingency form we have

provided you because it's application across the country is uniform, meaning

you have been ripped off, are being ripped off and you will continue to be

ripped off until and unless something is done to prevent it, correct it and

recover it.

We at The Shuster Project hesitate to assume that the IRS is attempting

to disavow knowledge of this crime, our meeting, their acknowledgments,

because they are having difficulty making a public acknowledgment relative to

all of this...especially the $1-$3 BILLION DOLLARS already defrauded from the

people across the country, their states and their municipalities, but their

curious if not bizarre behavior leaves little doubt that, at the very least,

they are negligent in both the handling and prosecution of this information.

Attorney General Janet Reno has recently been brought directly into this

by The Shuster Project and we are still awaiting word back from her that she

is going to bring the IRS and the Justice Department back online with all of

what we have provided them and the promises to prosecute this information

that remains untouched by them thus far.

If this letter about these issues was any shorter, you'd have every

right to ignore it.

But we are confident that once you research our web site, review the

facts as we have presented them to you and realize that even though the IRS

was brought into this and given exactly the same potent information and

materials that you are now being given, and realize that the IRS has chosen

to allow this tobacco industry Income Tax Fraud to continue, including the

very method(s) used by the tobacco companies to perpetrate it, you will see

that there is something very wrong going on here with both the IRS and the

Justice Department's handling of this information and these materials.

In closing, let me both apologize for the length of this correspondence

yet ask that if you have any questions that arise from either this email or

from visiting The Shuster Project web site, please feel free to contact me

directly.

We look forward to assisting you in any and all ways that may be

required to address just these two issues of tobacco industry state and

federal Income Tax Fraud and State Sales Tax Fraud.

As is our custom, this letter will soon appear in our CORRESPONDENCE

2000 page for public review.

A "hard copy" of this letter can be sent to you, however, we found no

mailing address anywhere on your web site.