More than 500 years ago, the Florentine statesman, Niccolo Machiavelli, warned: A prince…must imitate the fox and the lion, for the lion cannot protect himself from traps, and the fox cannot defend himself from wolves. One must therefore be a fox to avoid traps, and a lion to frighten wolves. Those who wish to be only lions do not realize this.
And never is the need greater to imitate the fox than when dealing with the Internal Revenue Service (IRS).
Several years ago, a private investigative agency found itself in serious trouble with that agency.
One of its employees had suddenly quit the company—leaving behind a major financial disaster.
That employee—whom I’ll call Pete—had been tasked with sending payroll tax records to the IRS. The company’s owner, Bill, assumed he had carried out his assignment.
Until he learned from the IRS that they had never received the records.
Consider the potential consequences:
- Failing to timely and properly pay federal payroll taxes results in an automatic penalty of 2% to 10%.
- Similar state and local penalties apply.
- Failing to properly file monthly or quarterly returns may result in additional penalties.
- Failing to file W-2 Forms results in an automatic penalty of up to $50 per form not timely filed.
- A particularly severe penalty applies where federal income tax withholding and Social Security taxes are not paid to the IRS.
- The penalty of up to 100% of the amount not paid can be assessed against the employer entity as well as any person (such as a corporate officer) having control or custody of the funds from which payment should have been made.
About 70% of the annual revenue collected by the IRS comes from payroll taxes. Under-reported and unpaid employment taxes account for about $72 billion of the United States tax gap. So the IRS makes the collection of payroll taxes a high priority.
No doubt about it—Bill was facing serious trouble.
What to do?
Fortunately, Steve, one of Bill’s employees, had a B.A. in Communications and had worked as a newspaper reporter.
When Bill told him of the calamity he was facing, Steve offered his best advice: Immediately contest the charge that he had been delinquent in providing the records. And explain to the IRS—in writing—what had happened.
Bill agreed.
First, Steve interviewed him at length to make certain he fully understood the circumstances leading up to his present crisis.
Then Steve sat down and typed up a letter—on office letterhead stationery—-to the IRS. Letterhead would give it an official appearance—and Steve wanted every advantage he could get.
Steve offered a straightforward presentation of what had happened: Pete, the number-two man in the company, had been entrusted with submitting payroll tax records to the IRS. But, nursing a grudge against his employer, he had dumped the records in a box and stashed this in a locked filing cabinet.
Then he had given notice and left the company. Later, an investigation of the office turned up the records—as well as the revelation that Pete had often used his office computer to access pornography.
In his letter, Steve emphasized that Bill’s company had previously had an unblemished record for meeting its payroll tax obligations on time. And he stated that the newly-found records had been sent to the IRS by registered mail.
Finally, Steve wrote that Bill was prepared to fully meet his financial obligations to the IRS. But he asked that Bill not be penalized for the irresponsible actions of a single, disgruntled employee.
The result?
Bill ended up paying only those monies that he legally owed. He was not forced to pay a penalty.
So what are the lessons to be learned from this episode?
- In dealing with an agency as powerful as the IRS, don’t ignore its letters.
- You have nothing to gain by pretending it will go away. It won’t.
- If you owe money, don’t deny it.
- Remain calm, even if you feel angry or afraid.
- Don’t use profanity or insults.
- Don’t try to play tough-guy with the IRS. Even the Mafia fears this agency.
- And with good reason: Al Capone didn’t go to prison for murder or bootlegging. He went away for income tax evasion.
- If you have a legitimate reason for having missed a payment, say so.
- Remember that everything you say to the IRS—verbally or in writing—is considered evidence given under oath.
- If you lie and get caught, you can face perjury charges as well as those for failing to comply with tax laws.
- Offer to fully pay any monies that you legally owe.
- If these amount to more than you can meet in a single payment, say so. Ask the agency to set up a plan by which you can pay it off in installments.
- If the agency balks at cooperating with you, contact a veteran tax accountant or attorney.
- The best accountants or attorneys for dealing with the IRS are former agents now working in private practice. They not only know the tax laws; they know the best ways to short-circuit an IRS audit and/or penalties.
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WHEN CRIMINALS SCREAM “LIBEL!”
In Business, History, Law, Medical, Politics, Social commentary on November 2, 2022 at 12:14 amOn October 3, former President Donald Trump filed a lawsuit against CNN for defamation.
Seeking $475 million in punitive damages, he charged the network with conducting a “campaign of libel and slander” against him.
Trump is claiming that CNN had used its influence to defeat him politically.
“As a part of its concerted effort to tilt the political balance to the left, CNN has tried to taint the Plaintiff with a series of ever-more scandalous, false, and defamatory labels of ‘racist,’ ‘Russian lackey,’ ‘insurrectionist,’ and ultimately ‘Hitler,'” the lawsuit claims.
The lawsuit focuses largely on CNN’s use of the term, “The Big Lie,” to describe Trump’s false claims that widespread voter fraud cost him the 2020 Presidential election.
The phrase dates from Adolf Hitler’s use of it in his autobiography, Mein Kampf: People “more readily fall victims to the big lie than the small lie, since they themselves often tell small lies in little matters but would be ashamed to resort to large-scale falsehoods.”
Trump’s lawsuit claims “The Big Lie” has been used in referring to him more than 7,700 times on CNN since January, 2021.
In addition, the lawsuit cites instances where CNN compared Trump to Hitler. In a January, 2022 report, Fareed Zakaria provided footage of Germany’s dictator.
So what are his odds of winning? Far less than your own of finding loose change in sofa cushions.
First: Donald Trump is a public figure—arguably the most public figure in the world. Plaintiffs who are public figures or government officials must prove themselves victims of actual malice to collect damages.
In the landmark case, New York Times v. Sullivan (1964) the Supreme Court declared that actual malice occurs when a statement is made “with knowledge that it was false or with reckless disregard of whether it was false or not.”
This is a more stringent standard than private citizens have to meet, which is negligence.
Second: Truth is an absolute defense against libel (unless the plaintiff is suing for invasion of privacy). And Trump’s history as a liar, criminal and traitor has been thoroughly established.
Liar:
Donald Trump
Criminal:
Traitor:
These incidents were nothing less than treason—inviting a foreign power, hostile to the United States, to interfere in its Presidential election.
Third—and perhaps the most important of all: In a libel suit, the plaintiff must answer—under oath—all questions put to him by the defendant’s attorneys.
Trump, better than anyone, knows the depths of his own criminality. Just as Al Capone knew his notoriety for evil would make it impossible for him to win a libel suit, so does Trump.
On August 10, he invoked his Fifth Amendment privilege against self-incrimination nearly 450 times during a deposition at the office of New York Attorney General Letitia James, in its probe into the Trump Organization’s business practices.
He would not be allowed to do so as a litigant in a libel suit.
Moreover, he has a history of threatening to file lawsuits—and then failing to do so.
During the 2016 Presidential campaign, at least 12 women publicly accused him of sexually inappropriate behavior—if not assault.
Trump’s reaction: “All of these liars will be sued after the election is over.”
Six years later, he has not filed a single lawsuit for defamation.
So why has he filed a defamation suit against CNN?
Money—not by winning an impossible lawsuit, but by raising it from his gullible and Fascistic followers.
He will claim—once again—that he’s being persecuted and that “they’re not coming after me, they’re coming after you.”
And his millions of media-hating followers will gladly pony up money they will never see again.
If he loses the lawsuit—or pulls out of it—he will claim he’s the victim of “the deep-state establishment.”
And ask his followers for even more money—which they’ll cough up.
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