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The Shuster Project

Tobacco Industry Fraud & False Claims Issues

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Click HERE To Read Our Letter Sent to Senator Kerry's Presidential Campaign

 

This "innocent" looking form was anything but...

Tobacco company representatives were only responsible for the "value" of the contingency funds they were assigned.

Upon any increase in the wholesale price of cigarettes, the "value" of the contingency fund would increase proportional to the number of cartons of stock the tobacco representative had.

The tobacco companies would instruct the tobacco company representatives to just "keep" the overage between the "old" value of the cigarette carton stock prior to the price increase and the "new," higher value of the contingency fund after the price increase.

This was the issue brought to the attention of the IRS.

This form alone could not indicate to the IRS the incredible scope of just this one "small" false claim made by the tobacco companies.

Let's do the math...

If you had, over the past, oh, 40 years over 50,000 tobacco company representatives, even those whose employment lasted during only one price increase, and those representatives had an average of 420 cartons of cigarette carton stock and there were an average of 3 price increases a year totaling 35cents per year...we are talking $294,000,000.00 of lost revenues to the IRS...NOT including interest and penalties...perpetrated fraudulently, thus invoking civil penalties...and the totals could, on this the SMALLEST of federal issues, add up to close to a billion dollars alone...

And the IRS just decided to walk away...

Don't you think, as they claim, that if they knew about it they would have done something about it by now?

Tobacco company representatives are still being forced to keep the "overages" and are being forced not to report it under threat of loss of their jobs...so who is telling you the truth here and who is not telling you the truth...?

Do you actually believe that it is the IRS that is being honest here with their ludicrous assertions that this issue either is not financially cost effective to pursue or the dollars just aren't there?..I think I just proved it is lucrative to the IRS and the American taxpayer...

Or that my information is not new to the IRS???  The tobacco companies are still forcing their representatives to defraud the IRS out of this money.

And where, until now, have you ever heard this issue before?  I've shown you my filings...where are the others which would show an ongoing investigation???

You won't be shown any because they don't exist. The IRS is walking away from a recovery of approximately $1 Billion dollars on one of the smallest issues of tobacco industry false claims ever brought to their attention...

I'm trying to do something about it and am attempting to work with the 50 states because the IRS wants to walk away from it.

This example stands to show those states with income taxes how they, too, have been defrauded of significant income taxes, employment taxes, medicare/social security moneys, interest and penalties.

Contact the Attorneys Generals whose electronic addresses I have provided and encourage them to work with me to recover this and other moneys not yet mentioned which total well over 50 times this "paltry" amount.

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Last Update: 01/24/2004 05:23 PM