The contentious Presidential campaign is winding down.  Donald Trump has declined to release his tax returns citing pending IRS audits.  Hillary believes Donald is hiding some deep dark secrets that could be a game changer.  Randall Sorensen, CPA, did some fact checking to bring some much needed clarity to next week’s election.  

The New York Times reported that Donald Trump may have avoided paying taxes for 18 years at first glance is shocking. However, if Mr. Trump hadn’t deducted $916 million in losses on his personal return then it’s likely the losses would have been utilized by his corporate entities.  According to the CCH 1996 U.S. Master Guide, the maximum personal tax rate was between 36% & 40% versus a maximum corporate tax rate was between 35% & 39%.  Stated another way, the net tax benefit recognized by Trump or a Trump entity would have been approximately $9 million ($916 million x 1%). To put this in perspective, this represents the same amount Bill Clinton was paid for 60 speeches in 2002 as reported to the Senate. http://pfds.opensecrets.org/N00000019_2002.pdf

 I then reviewed something that everyone can relate to…..  cleaning our houses.  According to their 2003/04 Federal Tax Returns, Hillary and Bill listed home office cleaning expenses totaling $147,000 for 2003 and $109,000 for 2004. Not a game changer but worthy of discussing around the water cooler. www.taxhistory.org

The next item could actually have implications on national security. On the 2002 Federal Tax Return, Bill listed depreciation on a barn that he had converted to an office at a cost of $147,500. The total amount of depreciation deducted by the Clinton’s for the barn was $10,240 between 2002 and 2015. In the previous year, the Clinton Foundation was gifted two servers valued at $62,500 each. www.clintonfoundation.org/sites/default/files/clinton-foundation-2001-financial-report.pdf

The Wall Street Journal reported that Bill Clinton sent only 2 emails during his presidency and didn’t own a blackberry. http://blogs.wsj.com/washwire/2008/09/12/does-a-president-need-to-be-computer-literate/  The 2001 Clinton tax return showed that Hillary purchased a new computer for $2,100.      

If we were treating servers like cars, this would be like comparing a small compact to a Ferrari.  No one would fault Hillary for opting to use the latest and greatest technology unless at the time she was Secretary of State. I believe both the FBI and voters would want to know if Hillary ever sent emails utilizing the Clinton Foundation server.  Further, did one of the Clinton Foundation servers ever reside in the barn?  Last, what type of security measures were in place to safeguard any and all information and documents being stored in the office in the barn? 

The upcoming Presidential election has become a scary proposition to many Americans. What should be even scarier to both Republicans and Democrats is the fact that the IRS and U.S. Government have risked exposing as many as 45 million Americans to identity theft. The IRS is either too proud or dysfunctional to accept help being offered by the private sector.  Regardless of which candidate wins next Tuesday, if complying with the Federal tax code compromises a taxpayer’s privacy, then it’s time for the President-elect to explore a national sales tax and permanently retire the IRS.  

Randall Sorensen, CPA has been practicing accounting for over 30 years and has specialized in forensic accounting for  25 years. Randall Sorensen’s accounting practice is located in Phoenix, Arizona.

The IRS pays individuals an average of $6,200/yr for operating imaginary businesses. According to a report issued by the Treasury Inspector General for Tax Administration, the IRS is defrauded up to $16 billion annually by tax filers claiming Earned Income Tax Credits on their tax return.  Randall Sorensen, CPA has developed technology that will identify one million phantom businesses and recover $960 million for the U.S. Treasury.

Technology called the Phantom Business Identifier (PBI) developed by Randall C. Sorensen, CPA, will identify one million imaginary businesses that cost’s honest Americans $7 billion annually.  

Statistics reported on www.irs.org show that during the Great Recession 500,000 business owners without children permanently closed.  In contrast, at the worst possible time to launch a business, taxpayers with children and no money started 800,000 new businesses.  Why would anyone want to jeopardize the security of their family when their odds for success are only 50%?  The answer is simple…. they didn’t!

Here is how tax frauds have been pulling the wool over the eyes of the IRS.  Jane Doe the mother of two, claims income of $14,700 from an imaginary cleaning business.  Since she doesn’t really have a business, Jane doesn’t need to purchase any brooms, dust pans, cleaning supplies of mops.  For Jane’s efforts she will qualify for federal tax credits of $7,100.  Before the US Treasury deposits a tax refund of $5,000 into her bank account, they make a deposit into Jane Doe’s social security retirement account for $2,100. From start to finish, Jane can complete her phantom tax return using phantom income in 15 minutes!

Randall Sorensen, CPA has practiced as a financial forensic expert for over 25 years. Three years ago Mr. Sorensen pitched his idea to the IRS.  The IRS literally tore apart the proposal and expressed a high level of interest.  One month after kicking the tires the IRS rejected the software by explaining that they already had a prototype and they didn’t have any money.  Thanks to the congressional hearings on targeting tax exempt entities, Congress confirmed the IRS wasn’t being truthful.  Specifically, the IRS entered into a software agreement with Strong Castle to spend up to $500 million at the same time they told Sorensen they didn’t have any resources.

Mr. Sorensen stated “a double standard exists within the walls of the IRS.  They severely punish taxpayers who lie but fail miserably when IRS employees fail to tell the truth”.   

Due to severe IRS budget cuts, Mr. Sorensen has offered to test 30 million tax returns for free.  Sorensen states, “The IRS won’t be able to use the excuse of being broke.  Rather than terrorizing honest taxpayers, the IRS needs to send a clear message to tax criminals that they will be caught and could face prosecution by the Department of Justice. Further, tax software companies must be vigilante in identifying fraud being committed at the kitchen table”.

Randall Sorensen, CPA has been practicing accounting for over 30 years and has specialized in forensic accounting for over 25 years. Randall Sorensen’s accounting practice is located in Phoenix, Arizona. Mr. Sorensen can be reached at 602-320-3183.

Hillary Clinton has stated that of the 60,000 emails she exchanged as Secretary of State half or 30,000 were personal. Randall Sorensen, CPA decided to provide Hillary’s boss, the taxpayers with the estimated cost of her lost work productivity. Based on her salary and workplace statistics, Hillary’s emails cost taxpayers $125,000. 

Hillary Clinton’s private server will confirm for the FBI whether any classified information was inadvertently passed.  The server will also provide an exact timeline of her emails.  Randall Sorensen, CPA and Certified in Financial Forensics decided to determine how much Hillary’s personal emails cost American taxpayers.    

Mr. Sorensen reviewed Hillary’s tax returns for years 2009 through 2012 and found that as Secretary of State she was paid an average annual salary of $158,000.  Presidential candidate tax returns can be viewed at www.taxhisory.org.  Also, according to the CATO Institute the average federal worker receives an additional 42% in fringe benefits ($34,000 avg. ben/$81,000 avg. pay).  When you multiply her annual salary of $158,000 by 142%, Hillary’s annual cost to taxpayers was $224,000. www.downsizinggovernment.org/overpaid-federal-workers.

Next, Sorensen relied on the McKinsey Global Institute regarding the amount of time worker’s spend on emails. MGI’s research shows employees spend up to 28% of their day on emails. www.mckinsey.com/insights/high_tech_telecoms_internet/the_social_economy. 

Therefore, if you multiply Hillary’s annual wages and benefits of $224,000 times 28%, the effective cost to taxpayers for her to read and send emails was $62,700.  Since Hillary has stated that 50% (30,000 of 60,000) were personal we would need to multiply $62,700 by 50% for a net cost to her boss, the taxpayers, of $31,350.  Multiplying $31,350 times four years as Secretary you arrive at a rather staggering cost of cost of $125,000.

Mr. Sorensen said tongue in cheek, “imagine walking into your boss’s office tomorrow and announcing that you plan to prepare 30,000 personal emails over the next four years at a cost to the company of $125,000 and you expect them to pay for it”.   Before attempting this, Sorensen stated “I recommend that your boss have a good sense of humor to prevent your sudden unemployment”.

In summary, Hillary’s urgency to instantly contact a loved one or repairman is human nature. The content of Hillary’s personal emails isn’t any business of the rest of the world…..   except maybe when you’re the Secretary of State and your being compensated by hard working taxpayers. Hillary should be applauded for teaching us all a valuable lesson…….     emails can and will come back to bite you!

Being a Tea Party member places a HUGE target on your back.  The tax exempt scandal proved that the IRS will go to great lengths to deprive honest Americans their constitutional rights.  I contacted the IRS Criminal Investigation Unit on May 9^th, 2014 and informed them that I could verify whether President Obama was a tax fraud in 1 minute!  The IRS sent me a letter on May 20^th, 2014 stating that my Whistleblower Form 211 didn’t contain an original signature.  This was a blatant lie on behalf of the IRS.  I suspect the IRS “lost” my signed original in the same manner they lost Lois Lerner’s emails.  I mailed a second “signed” Form 211 on May 30^th, 2014.  The IRS has never launched an investigation to determine whether Barack Obama committed a felony by willfully failing to pay his federal taxes.   

5 WAYS TO PROVE PRESIDENT OBAMA COMMITED FRAUD! 

1. Chairman Dave Camp of the Joint Tax Committee can request Barack Obama’s IRS Account Transcript for 1990.  At a minimum, this would confirm that BO failed to pay social security taxes on his book advance and currently owes the U.S. Treasury between $43,000 and $130,000.

2. Congress can subpoena Barack Obama’s social security earnings records for 1990.  Don’t worry about the CIA trying to redact these records.  If 1990 isn’t available, then subpoena every year from 1991 through 2014.  Records can be altered but computer forensics will leave a complete picture of the fraud.

3. American Center for Law and Justice Attorney Jay Sekulow can file a lawsuit to obtain the release of Barack Obama’s social security records under the Freedom of Information Act (FOIA).    

4. Subpoena Harvard Law School financial aid department to verify timing of $43,000 in student loans from 1988 through 1991.  Did BO defraud the federal government by pleading poverty on his student loan applications after he was flush with cash after receiving a $75,000 book advance?

5. Congress can extract Barack Obama’s 2006 Senate Financial Disclosure Report.  Did President Obama submit a fraudulent report by failing to report an outstanding federal tax liability approaching $40,000. 

5 REASONS I BELIEVE PRESIDENT OBAMA IS A FRAUD 

1. Barack Obama would have needed to write out a check to the Internal Revenue Service for $26,490 just four and ½ months after receiving his $75,000 book advance in November of 1990.  BO’s personal accountant may have filed an amended tax return in later years but he would have conveniently forgotten that the book advance required BO to pay the IRS $8,370 in social security taxes. 

2. Barack Obama was incompetent when he prepared his 2001 tax return.  He made 10 math errors, prepared three different versions, claimed phantom income of $21,000 and overpaid his taxes by $7,300.

3. BO remembered grass falling from his grandmother’s apron in the book Dreams From My Father.   How is it possible that BO could recall events that happened 25 years ago but can’t remember the content of his speech he read five minutes earlier without the aid of a teleprompter?

4. Barack Obama accumulated 17 parking tickets while attending Harvard and paid just two in February of 1990.  Nine months later BO received a $75,000 book advance but made no attempt to pay his delinquent parking tickets.

5. Barack Obama received book income of $1.5 million in 2005.  Why did BO wait to pay his delinquent Harvard parking tickets just two weeks before announcing his candidacy for President in 2007?

 I’m the only Certified Public Accountant that has been involved in an Impeachment Trial of a presiding Governor in the last 70 years. If I’m wrong about President Obama being a tax fraud I will personally pay my way to Guantanamo Bay.  Let the water boarding begin!

May 9, 2014

Mr. Steven Slazinik

IRS Criminal Investigation Unit

Phoenix, AZ 85012

Dear Steve:

Enclosed for your review is documentation regarding tax fraud that I believe occurred in 1991.  The best case scenario is that the individual filed his tax return but failed to pay required employer & employee social security taxes.   Worst case scenario the individual failed to file a tax return for 1990.   

I believe the fraud penalty would apply since the individual was a recent graduate of Harvard Law School and as expert on constitutional law would have “had knowledge of its falsity and intended that it be acted upon or accepted as the truth”.

FRAUD OVERVIEW

Tom Draper reported in GQ Magazine’s November 2009 issue (www.gq.com) that President Obama signed a six-figure contract with Poseidon Press on November 28, 1990.  The exact amount was reported as $150,000 by Christopher Andersen in his book Barack and Michelle: Portrait of an American Marriage.  According to Jack Cahill, Barack Obama was advanced $75,000 for the book.  It’s not unusual in the publishing business to receive one-third to one-half of the contract value upfront. However, a $75,000 advance would have required a recent law school graduate strapped with heavy student debt to pay the IRS $25,000 four and ½ months later.  I have been a CPA for 34 years and I’m Certified in Financial Forensics. In 1988 I was hired by the Arizona House of Representative in the Senate Impeachment Trial of Governor Evan Mecham.  My forensic analysis of an improper $80,000 loan from a political fund to a private car dealership justified the Impeachment of Governor Mecham. 

HISTORY OF INCOMPETENT TAX PREPARATION

In the fall of 2012 I reviewed the tax returns of both presidential candidates.  During my analysis of President Obama’s 2001 Individual Tax Return, I found 10 math errors.  The errors were simple arithmetic errors and confirmed a high level of tax incompetency.   President Obama’s 2001 tax return wasn’t signed by a paid preparer.  I verified that the Obama’s prepared three different drafts of their 2001 tax return.  The first draft calculated an income tax liability of $79,000.  This would have required taxable income of $271,000.  In contrast, President Obama’s website shows 2001 taxable income of $250,000.   President Obama ended up paying income tax on $21,000 of phantom income that resulted in sending Uncle Sam an extra +$7,300.  Based on the fact that Barack Obama used bits and pieces from three different 2001 tax drafts, made 10 errors, overpaid his taxes by $7,300 by claiming $21,000 of phantom income, President Obama lacked the necessary competency to correctly prepare his taxes.     

I believe President Obama committed tax fraud in 1991 by mishandling a $75,000 book advance he received from Poseidon Press in November of 1990.  I have calculated two tax scenarios: 1) failed to pay social security taxes and owes IRS $43,000 or 2) failed to report $75,000 currently owes the US Treasury in excess of $130,000. Failure to file and pay income taxes is a federal felony

There are two methods to verify that Barack Obama committed tax fraud.  Congress has given the Whistleblower Office the authority to hire experts for our expertise in order to expedite the fraud investigation. I will agree to waive my hourly billing rate of $225.00.  I estimate that the fraud investigation of President Obama can be completed in 1 minute!

The Tea Party isn’t the only group of Americans being targeted by the IRS.  Listed below are 52 individuals who were convicted or charged by the Department of Justice for preparing fraudulent tax returns.  I believe the IRS is guilty of targeting black and Hispanic tax preparers while turning a blind eye to corporate giants.  My research showed that H&R Block didn’t have a single conviction even though they employ 100,000 tax preparers.    

DOJ Failed to Investigate IRS Fraud Charges

Last December I filed fraud charges against the Whistleblower Office for failing to investigate multi-million tax preparer fraud.  The Department of Justice refused to even acknowledge my complaint.  I finally asked Senator Flake to intervene on my behalf after 8 months.  In just days I received a letter from the DOJ informing me that they lacked jurisdiction to investigate violations of federal tax laws.  The DOJ said the decision to investigate tax fraud is vested solely with the IRS.

IRS Handpicks Tax Preparers to Face DOJ Conviction

The DOJ prosecuted 60+ tax preparers during the last 12 months. The DOJ gets their leads from the IRS. This means that the IRS handpicks tax preparers who face a DOJ conviction rate of 94%.  If the IRS is going to target small businessman for millions in fraud, then doesn’t the government have a fiduciary duty to taxpayers to hold large corporations accountable for causing the US Treasury to lose billions?

Racial Profiling Violates Civil Liberties

In 1996 the U.S. Supreme Court ruled in U.S. v Armstrong that racial profiling is constitutional in the absence of data that similarly situated defendants of another race were disparately treated.  I’ve asked Senator Rubio and Congressman Issa to subpoena the IRS and demand all records regarding selection protocal that results in DOJ convictions.  Congress needs to identify what criteria the IRS utilized in selecting tax preparers for DOJ prosecution.

Tea Party Scandal is Small Potatoes Compared to IRS Racial Profiling

The news media is quick to criticize and toss Tea Party members under the bus.  Every American should embrace the fact that a massive IRS corruption was uncovered. The IRS was created to oversee tax collection and compliance.  However, the IRS has morphed into a powerful agency that lacks transparency, honesty and integrity.  They terrorize taxpayers of lower economic means who simply don’t have the money to hire a CPA or tax attorney to represent them from IRS mayhem.  My research shows over 75% of the tax preparers the IRS handed over to the DOJ for convictions were minorities. 

The bottom line is simple, if the Internal Revenue Service is going prosecute black and Hispanic tax preparers who’ve engaged in tax fraud, than they have a duty to prosecute white tax preparers committing tax fraud based on professional shortcomings instead of race.     

If Senator Rubio and Congressman Issa find that the IRS is guilty of profiling minorities then it’s time the Internal Revenue Service faces the same fate the government bestowed upon Arthur Andersen for the Enron debacle.  I’ve been a CPA over 30 years and I watched in amazement as 100,000 outstanding Arthur Andersen professionals lost their jobs as the result of a few bad apples.  In contrast, having closely worked with multiple layers of the IRS in the last three years, I will attest that the IRS has cases of bad apples sitting on pallets that would require multiple railroad cars to move. I believe it’s time for the IRS to go by the wayside just like vinyl records and VHS recorders. The best use for the IRS is to become an answer to a trivial pursuit question.

During the next three months the Treasury Inspector General for Tax Administration, estimates that the US Treasury will be defrauded $14 to $16 billion by tax frauds.  Each tax season 30 million tax filers (not taxpayers) share in a $60 billion dollar money pie called Earned Income Tax Credit.  What started out in 1975 as an admirable idea and expanded by Ronald Reagan to assist low-income parents has morphed into a gigantic fraud that threatens the safety of ALL Americans courtesy of the incompetency within the walls of the Internal Revenue Service.

Sincere Apology to Military Families

Before beginning my discussion I want to apologize to military families, relatives and friends that have suffered losses in the Iraq/Afghanistan Wars.  My purpose isn’t to bring pain to those who have lost loved ones but rather to: Stop the Madness called the Internal Revenue Service.

How The IRS Is Defrauded

Jane Doe (mother of two) claims $14,420 income from an imaginary cleaning business on her tax return.  Since Jane doesn't have a business, she doesn’t need to purchase any brooms, dust pans, cleaning supplies or mops.  For Jane’s efforts, she qualifies for federal tax credits of $6,900. Before the US Treasury deposits a tax refund of $4,900 into her bank account, they make a deposit into Jane Doe’s social security retirement account for $2,000.  From start to finish, Jane can complete her phantom tax return using phantom income in 15 minutes! 

IRS Sent $46 Million in Tax Refunds to a Single Atlanta Address

Forrest Gump memorialized the line “I’m Not a Smart Man”.  I think it’s safe to say that even Forrest Gump would agree that issuing 23,994 tax refunds totaling $46 million to unauthorized alien workers  isn’t very smart.  Forrest wasn’t aware how accurate the phrase “Mama always said stupid is as stupid does” would apply when describing the IRS. http://cnsnews.com/news/article/irs-sent-46378040-refunds-23994-unauthorized-aliens-1-atlanta-address

$5,000 Cash Refund or 10 IED’s

The IRS should consider offering EITC tax frauds the choice of receiving $5,000 cash or 10 IED's (improvised explosive devices).  Terrorists shouldn't have to be burdened (tongue-in-cheek) with going to the bank and having to negotiate the purchase of IED’s.  If terrorists are responsible for only ½ of 1% of the estimated 8 million fraudulent EITC tax returns, it represents tax fraud of $200 million.  The internet shows the average cost of an IED is $500.  Stated another way, the US Treasury may be responsible for annually funding 400,000 IED’s! 

Potential Terrorist Tax Refund Fraud

60% of Iraq War Casualties Caused by IED’s

The Washington Post reported that 60% of US combat casualties in Iraq and Afghanistan were the result of improvised explosive devices.  That means that approximately 2,000 troops have been killed and another 20,000 wounded by IED’s. http://www.washingtonpost.com/opinions/improvised-explosive-devices-are-here-to-stay/2013/05/17/8d9c9d7c-be64-11e2-9b09-1638acc3942e_story.html

US Citizens Indicted for Selling Approx. 20,000 Computers to Iran

The Department of Justice indicted two Dallas businessmen for selling $12 million in computers to Iran. (http://www.fbi.gov/dallas/press-releases/2013/dallas-area-businessmen-charged-in-plot-involving-illegal-export-of-approximately-12-million-worth-of-computers-to-iran).  In addition the DOJ charged a pair of California individuals for selling $5 million in computer equipment to Iran.  http://www.justice.gov/opa/pr/2012/May/12-nsd-629.html

Leading al Qaeda Members Based in Iran

CNN reported the 9/11 Commission found that of the 19 hijackers, "8 to 10 of the 14 Saudi "muscle" operatives traveled into or out of Iran between October 2000 and February 2001."  According to reporter Peter Bergen, Iran has been a safe haven to al Qaeda for over ten years.

Tax Fraud Technology Monitored by France and Germany

I issued a press release entitled "Tax Technology Would Save IRS $3.7 Billion in Next 60 Days".  The article had 881 readers.  This included 75 from the counties of France and Germany.  Why would those countries be so interested in learning about EITC tax fraud technology in the United States?

Why is the IRS Afraid to Use FREE Technology to Protect Troops?

The Supreme Court has said that if you willfully defraud the US government by filing false tax returns you can be deported. One year ago I offered to test 30 million EITC tax returns in 30 minutes…   for FREE.  The IRS said they couldn’t accept my offer unless I resubmitted my entire proposal.  Since tax season was commencing the following month, there wasn’t any chance that the IRS would have approved my “free offer” in order to save taxpayers $3.7 billion.

Tea Party Scandal is Small Potatoes Compared to Massive IRS Corruption

During the last year the IRS:  1) lied about conducting $3 billion tax fraud investigation, 2) broke business promises, 3) violated federal laws, 4) was caught in a sting operation that proved IRS was taking credit for conducting phantom investigations, 5) snubbed Congressional inquiries, 6) was guilty of conversion when government workers cashed paychecks for work never performed and 7) committed honest services fraud (federal felony) by failing to provide the public with the intangible right of honest service.  I asked the US Department of Justice Tax Division for help to investigate potential felonies committed by IRS employees. They responded eight months later and stated that the DOJ “lacks jurisdiction over the alleged offenses”.  As long as the fox is in charge of the hen house, the farmer will never find out the truth about his missing chickens or an explanation on why the fox has feathers coming out of his mouth.

Congress Needs to Connect the Dots to Terrorism

Back in 1980 when I filed my tax return it wasn’t unusual to wait 8 weeks for a refund in the mail.  Technological advancements allow folks to receive their refunds in 7 to 10 days.  I suspect a huge number of tax frauds need to pay off their Christmas charges.  Why does getting money in the pockets of Black Friday shoppers take precedence over American troops?  The IRS has morphed into the largest fraudulent legal entity in the United States.  I estimate that of the $250 billion paid in tax refunds during the next three months $50 billion will be placed in the hands of tax frauds, career criminals and world terrorist.   

Time for National Sales Tax to Protect Americans

I’m one of the few people in the US that can play the IRS fraud card and back it up.  My dealings with the IRS over the last three years can be summed up with 5 words: powerful, manipulative, dangerous, incompetent and unlawful.  I’ve been a CPA for over 30 years and I’m Certified in Financial Forensics.  I’ve accumulated irrefutable evidence that the IRS is committing felonies. The recent Congressional hearings haven’t accomplished anything.  The Tea Party needs to use its power and influence and demand Congress dismantle the IRS because their severe level of incompetency threatens the safety of American troops and safety of ALL US citizens.  Let’s get Congress working on a national sales tax that would take the place of filing a tax return for anyone earning less than $250,000/yr.  This would accomplish four things: 1) allow everyone to pay their fair share, 2) prevent US Treasury from being defrauded $50 billion, 3) reduce the IRS workforce from 100,000 to 10,000 and 4) allow military parents the peace of mind knowing that the IRS isn’t funding weapons that could be used to kill their children.

If House Speaker John Boehner wants to level the debt negotiating playing field he should ask Congress to verify whether President Obama is a tax fraud?  Last fall President Obama challenged Mitt Romney to come clean and release his tax returns so voters would know whether he paid his fair share.  Randall Sorensen, CPA is asking President Obama to come clean regarding the filing of his 1990 tax return when he signed a six-figure contract book deal with Poseidon Press. Failure to do so would be a violation of Title 26-Internal Revenue Code.

Tea Party members will question my sanity for alleging that President Obama committed a felony via tax evasion.  My decision is simple…   if President Obama wants 310 million Americans to follow mandated federal law then President Obama needs to prove to Americans that he has ALWAYS been in compliance with the US Tax Code as required by every citizen of the United States.    

Tom Draper reported in GQ Magazine’s November 2009 issue (www.gq.com) that President Obama signed a six-figure contract with Poseidon Press on November 28, 1990.  The exact amount was reported as $150,000 by Christopher Andersen in his book Barack and Michelle: Portrait of an American Marriage.  According to Jack Cahill, Barack Obama was advanced $75,000 for the book.  It’s not unusual in the publishing business to receive one-third to one-half of the contract value upfront. However, a $75,000 advance would have required a recent law school graduate strapped with heavy student debt to pay the IRS $25,000 four and ½ months later.  I have been a CPA for 33 years and I’m Certified in Financial Forensics. In 1988 I was hired by the Arizona House of Representative in the Senate Impeachment Trial of Governor Evan Mecham.  My forensic analysis of an improper $80,000 loan from a political fund to a private car dealership justified the Impeachment of Governor Mecham. 

Last fall I reviewed the tax returns of both presidential candidates.  During my analysis of President Obama’s 2001 Individual Tax Return, I found 10 math errors.  All of the errors were simple arithmetic errors that would have been prevented with a computerized program such as Turbo Tax. 

President Obama’s 2001 tax return wasn’t signed by a paid preparer and it would appear the tax return was prepared by President or Ms. Obama.  I determined that the Obamas prepared three drafts of their 2001 tax return.  The first draft calculated an income tax liability of $79,000.  This would have required taxable income of $271,000.  In contrast, President Obama’s website shows 2001 taxable income of $250,000.   President Obama ended up paying income tax on $21,000 of phantom income that resulted in sending Uncle Sam an extra +$7,300.  I think Republicans and Democrats will unanimously agree that President Obama is one of the greatest orators of our time.  The same can’t be said regarding President Obama’s skill as a tax preparer!

Based on the fact that President Obama used bits and pieces from three different 2001 tax drafts, made 10 errors, overpaid his taxes by $7,300 by claiming $21,000 of phantom income, it would appear that President Obama lacked the accounting skills to competently prepare his tax return.  If President Obama wasn’t proficient at preparing his taxes in 2001 it’s not a stretch to assume that he wouldn’t have been proficient in 1990.

I believe President Obama’s has a massive skeleton in his tax closet as it relates to the mishandling of the est. $75,000 book advance from Poseidon Press in November of 1990.  I have determined only three tax scenarios exist: 1) filed correctly and paid the IRS $25,000, 2) reported income as passive, failed to pay social security taxes and owes the IRS $41,000 or 3) failed to properly report the income and currently owes the US Treasury in excess of $123,000. (www.randallsorensencpa.com/obama)

Barack Obama was flush with cash at the end of 1990.  However over the next 1 ½ years he failed miserably to deliver a completed manuscript to Poseidon Press in June of 1992.  Tom Draper reported that Obama had other things on his mind, namely the impending October 3^rd marriage to Michelle. Writer Christopher Anderson wrote “when Barack informed them that he had spent the money and that he and his wife were still chipping away at their massive student loan debt – the publisher agreed not to press the issue”.  Draper wrote that Poseidon terminated Obama’s contract on October 20, 1992.

In January of 2007, Barack Obama engaged in some skeleton housekeeping. According to the Somerville News, Barack Obama shelled out $375 to pay 15 parking tickets accumulated at Harvard in the late 80’s. The majority of Americans abide by parking restrictions and if we’re unlucky enough to receive a ticket we stuff money in an envelope and mail it within days. This wasn’t the case for Barack Obama.  He waited nearly 20 years before deciding to settle his delinquent ticket balance. The apparent reason was his decision to enter the presidential campaign two months later.  Why didn’t Obama come clean earlier after banking millions in book royalties in 2005/06?  

Could Barack Obama have decided to clean up any tax obligations from 1990?  Absolutely….  but highly unlikely for the following reasons:  First, failure to file and pay income taxes would be admitting to the commission of a felony.  Second, the original $25,000 tax balance had grown to over +$100,000 with interest and penalties. Third and probably a game changer, is the consequences surrounding an ethics violation for failing to accurately complete his United States Senate Financial Disclosure Report.  Senator Obama would have been required to list the outstanding tax liability on his 2005 report.  Failure to do so is a violation of 5 U.S.C. app. 4 § 104, and 18 U.S.C. § 1001. The fine for filing a false report is up to $50,000 be imprisoned for up to one year.  If discovered this would have probably ended his candidacy before it got started. 

People have grown tired of the manner in which President Obama talks down to his peers. Former President Ronald Reagan could be tough but according to a Marine friend who served in the White House, he had a heart of gold.  If President Obama is able to mandate 310 million Americans to follow the US Tax Code, then I want proof that President Obama complied with the US Tax Code his entire life. The IRS cuts no one slack.  The manner in which the IRS aggressively pursues tax evaders should be the same….   even for Presidents. I informed Senator Cruz, Senator Grassley, Congressman Boehner, Congressman Issa and Congressman Gowdy how in 1 minute they can verify whether President Obama committed a felony.  If President Obama wants people to buy into Obamacare then he needs to show 310 million Americans that he has ALWAYS been in compliance with the US Tax Code.  What is wrong with Congress checking the integrity of our President?  Especially if it can be done in 1 minute!

Did you know that by writing 5 numbers on a tax return the Internal Revenue Service will pay you $6,600 for doing nothing?  According to the Treasury Inspector General's Office the IRS is defrauded between $14 and $16 billion each tax season.  Nearly 30 million tax filers (not taxpayers) share in a $60 billion dollar pie called Earned Income Credit.  Basically, if you earn between $3,000 and $45,000 and have a dependent child, you qualify for a tax credit between $300 and $7,500. 

Here is How the IRS is Defrauded $6,600!

Jane Doe writes on her 1040 Schedule C that she earned $13,720 income from an imaginary cleaning business.  Since Jane doesn't have a business, she doesn’t need to purchase any brooms, dust pans, cleaning supplies or mops.  For Jane’s efforts, she will qualify for federal tax credits of $6,600. Before the US Treasury deposits a tax refund of $4,900 into her bank account, they make a deposit into Jane Doe’s social security retirement account for $1,700.  From start to finish, Jane can complete her phantom tax return using phantom income in 15 minutes! 

I contacted the FBI and informed them that tax preparation companies would defraud the US Treasury of $3.7 billion during the 2013 tax season.   Unscrupulous tax preparers don't hesitate to file bogus EIC tax returns defrauding the IRS of $6,600 because they slice a $200 prep fee before the money ever reaches the hands of the tax fraud.   

I issued a press release entitled "Tax Technology Would Save IRS $3.7 Billion in Next 60 Days".   The article had 881 readers.  This included nearly 75 from the counties of France and Germany.  Why would those countries be so interested in learning about tax fraud technology in the United States?

$5,000 Cash Refund or 10 IED’s

The IRS should consider offering EIC tax frauds the choice of receiving $5,000 cash or 10 IED's.   Terrorists shouldn't have to be burdened with going to the bank and then having to negotiate the purchase of improvised explosive devices. 

I estimate terrorists obtained 40,000 fraudulent 2012 EIC tax refunds that paid them $200 million this past March.  According to Wikipedia the avg. cost of an IED is $500.  As a result of the IRS ineptness at preventing tax fraud, the US Treasury may have just funded 400,000 IED's.   Why should American troops potentially suffer?

Last fall Randall Sorensen CPA provided the IRS a solution to prevent massive tax fraud.  The IRS kicked the tires for a month only to come back and say: 1) they didn’t have any money and 2) the idea of testing tax returns in real-time lacked innovation.  Really…..   I guess Pony Express trumps Federal Express in the eyes of the IRS.  In contrast, the cash strapped IRS managed to pay $500 million to software developer Strong Castle.  The company was “friends” with an influential IRS employee.  That is pure fraud.

The IRS doesn’t want American taxpayers to know what a complete sieve they are at preventing tax fraud.  Over the course of 20 years, one unscrupulous taxpayer can defraud the US Treasury as much as $300,000 and never have to pay a dime or work a day in their life.  One final rub, the tax fraud qualifies for a retirement because the IRS withheld Social Security taxes from their phantom job.  Speaking of retirement, I believe it’s time to permanently retire the IRS unless they can demonstrate the ability to prevent massive tax fraud that jeopardizes the safety of our troops.

Dear Senator Cruz

Recently I received a letter from Kathryn Keneally of the Department of Justice.  She was responding to a July inquiry made by Senator Flake on my behalf.  I had asked to find out why the DOJ had never investigated: 1) ABC Tax Co. for tax fraud and 2) IRS Director Stephen Whitlock for committing honest services fraud.  Listed below are the answers I received:

DOJ Refused to Investigate ABC Tax Co Fraud

I provided the DOJ with the identify of 4,236 ABC Tax Co tax clients who defrauded the US Treasury of $17 million during the 2009 tax season by claiming phantom income in order to qualify for earned income tax refunds that put $4,000 in the hands of each criminal. The DOJ gave the following response:

        “With respect to the December 6, 2012 letter requesting that the Tax Division investigate ABC Tax Co, the responsibility for investigating potential violations of federal tax laws is vested in the IRS”

Senator Cruz, who are American citizens supposed to turn to if the Department of Justice refuses to investigate fraud? 

DOJ Refused to Investigate IRS Employee Fraud

I provided the DOJ with documentation that Internal Revenue Service Stephen Whitlock employee committed two felonies. The first time he violated federal law was when he willfully misused section 6103 in response to the inquiry made by Congressman Schweikert.  Director Whitlock committed a second felony when he failed to provide the public who he serves with the fiduciary duty of honest service.  Director Whitlock is responsible for taking credit for phantom investigations and issuing results on investigations that were never performed. The DOJ gave the following response:

        “To alleged misconduct by Whistleblower Office Director Whitlock and other employees in that office, the nature of your allegation is within the investigation jurisdiction of the Treasury Inspector General for Tax Administration”

Thank God for Tea Party

Senator Cruz as a CPA I have witnessed firsthand the abuse of Internal Revenue Service for over 30 years. The IRS bayonet’s those who can’t defend themselves.  The majority of Congress would love to see the Tea Party go away.  American taxpayers should be forever indebted to the Tea Party for exposing the widespread corruption inside the walls of the Internal Revenue Service.

Senator Cruz I think the majority of Tea Party members would agree with the following statement.  If Congress allows the IRS to put people in jail for fraud, then Congress has a duty to taxpayers to put IRS employees in jail for fraud.  I’m writing to ask you to investigate why the DOJ won’t investigate a billion dollar fraud and why the DOJ won’t investigate IRS employee felonies?   I look forward to hearing your written response.

Randall Sorensen CPA CFF

Dear Congressman Issa:

Have you ever known a firefighter to get paid for putting out a fire that never existed?  Taxpayers need to prepare themselves for another sucker punch to their stomach courtesy of corrupt Internal Revenue Service employees. Last April I caught the IRS with their pants on the ground.  I set my trap in September of 2012 to confirm whether IRS employees were engaging in fraud.  It took eight months but I was able to prove that IRS was taking credit for conducting phantom investigations and for issuing fictitious results on work that was never performed.  

This should outrage every American who is forced to work for Uncle Sam between January until May to pay their income taxes.  Granted, the IRS employee also goes off to work but instead of putting in an honest day’s work they spend their day fabricating jobs to justify their government paycheck.  The web becomes further tangled when IRS employees prepare reports on the results of investigations that never took place.  The government defines embezzlement as the “unlawful conversion or misappropriation of any voucher, money, or item of value of the United States”  

Currently the IRS is using fraud technology that is 20 years old.  Do you still use the cell phone you purchased in 1993?  Do you still use the cell phone you purchased three years ago?

Statistics released by the IRS show that electronic audits are 10 times more efficient than IRS field agents.  I offered to test 30 million tax returns in 30 minutes and the IRS informed me that my idea of testing tax returns in real-time lacked innovation. The IRS would rather plod along hiring more government workers which places a tremendous burden of having to create more phantom jobs.

Americans are tired of being bullied by an unscrupulous agency that has morphed into a giant fraud.  If Congress were to embrace technology from the 21^st century they could reduce the IRS workforce -50% and put the remaining 50% on notice that continued advancements in technology may eliminate their positions. 

Randall Sorensen CPA CFF

Dear Senator Cruz:

Long before the American public became aware of the current IRS scandal, I witnessed firsthand the corruption taking place each and every day between the walls of the Whistleblower Office under the direction of Stephen Whitlock. 

Last November I demanded his resignation on behalf of all honest American taxpayers.  Subsequently I have accumulated evidence that I’ve turned over to the Department of Justice that shows Director Whitlock willfully violated federal laws that warrant his removal from office.

Honest Services Fraud 

Internal Revenue Service violated Federal law by failing to provide the public they serve with the intangible right of honest service. The law makes it a crime for government officials to deny the public of honest service.  Violating the HSF statute is a federal felony punishable by five years in prison and a $250,000 fine.

IRS Violated RRA Section 1203

IRS Director Whitlock violated section 1203 of the Internal Revenue Service Restructuring and Reform Act (RRA) when he failed to respond to Senator Jon Kyl’s Congressional Inquiry. In addition he willfully misused section 6103 in response to the CI made by Congressman Schweikert. Director Whitlock failed to answer the following question: “Did ABC Tax Co engage in tax fraud?” Instead of answering the question Director Whitlock said “disclosure laws that protect the tax information of all taxpayers prevent us from providing information to a third party on the outcome”.  This is a false statement.  Former Acting Commissioner Steven T. Miller issued a memo on June 20^th, 2012, that stated “with appropriate controls, interaction with a whistleblower during an examination can assist in timely and correct resolution of issues”.  Director Whitlock provided false information to Congressman Schweikert. 

IRS Hid Behind Abused Power

I contacted the IRS on August 17^th, 2012, to obtain a debriefing as promised by dismissed Acting Director Stephen T. Miller.  To-date I had blown the whistle on $934 million in earned income credit fraud committed by ABC Tax Co clients.   Listed below are questions I asked IRS employee Dale Cundiff before he hung up the phone on me.

Sorensen: “I submitted Part I of my claim against ABC Tax Co for $5,323,100 on February 6^th 2012.  According to Deputy Commissioner Miller the initial evaluation of my case would have been completed approximately May 6^th, 2012.  The Commissioner indicated that I would receive a debriefing and may be asked to provide my expertise as an informant.  Could you brief me on the results of the Whistleblower initial evaluation?”

IRS: Your claim is still open and I cannot comment on its status. That’s all that I’m legally required to say.

Sorensen: “The Whistleblower Office has a fiduciary duty to provide Randall Sorensen with the intangible right of honest service. Would you agree with that statement?”

IRS: I don’t understand

Sorensen: “I submitted Part II of my claim against ABC Tax Co for $12,015,000 on Feb 6^th 2012.  Could you brief me on the results of the initial evaluation/”

IRS: No sir

Sorensen: “I submitted Part III of my claim against ABC Tax Co for $74,400,000 on Mar 6^th 2012.  According to Deputy Commissioner Steven T. Miller the initial evaluation of my case would have been completed approximately June 6^th 2012. Commissioner Miller indicated that I would be receiving a debriefing.  Could you brief me on the results of the initial evaluation?’

IRS: No sir claim is still open

Sorensen: “Deputy Commissioner Steven T. Miller stated in a July 25^th, 2012 letter to Senator Grassley “collection function also has steps to obtain information from informants to assist in the collection efforts. On February 6^th, 2012, I offered to test 5.4 million ABC Tax Co earned income tax filers for tax year 2011 in 5 minutes.  Can you tell me why the Whistleblower Office didn’t ask me for my assistance?”

IRS: Ahh   Ahh. I’m not sure of that one, it’s one or the other.

Based on the dysfunction I witnessed in the Whistleblower Office from February, 2012 through August, 2012, I knew the Whistleblower Office lacked the necessary competency and work ethic to conduct a billion dollar investigation. Therefore, I set up a sting operation. Below is a timeline of the trap I set to catch corrupt IRS officials:  

Sting Operation Timeline

 08/17/12 Sorensen called IRS to receive a debriefing on $1 billion claim

08/17/12 IRS Refused to provide answers after being on file 180 days

09/06/12 Sorensen filed client’s amended tax returns to obtain 2010 refund of $1,550 and 2011 refund of $6,788. The ex-husband was guilty of tax fraud for falsely filing head-of-household and daughter as a dependent

09/13/13 Sorensen submitted form 211 to WO to claim reward on ex-husband tax fraud of $6,515

11/22/12 IRS agreed and issued ex-wife 2010 refund of $1,550

11/07/12 Whistleblower Office set up claim #2012-001101 and sent letter stating it could take several years to resolve tax matters as well as several years to collect

11/19/12 IRS agreed and issued ex-wife 2011 refund of $6,778

11/21/12 IRS Friday before Christmas WO closed claim #2012-001101 one month after informing Sorensen it would be years and years

01/08/13 IRS prepared letter to Sorensen stating that information provided “did not result in any proceed”

04/02/13 Sorensen obtained transcript showing IRS never attempted to collect taxes from husband

04/02/13 Confirms IRS committed honest services fraud when they lied about phantom investigation and lied about phantom results

04/02/13 IRS embezzled funds from US taxpayers by cashing paychecks for work never performed

IRS Defrauded Sorensen $2,000

The Whistleblower Office sent a letter dated November 7^th, 2012 indicating that it could take several years until final resolution of all tax matters.  In addition, the WO said that before we can pay a reward we must collect any taxes, penalties or fines and this could also take several years.  The Whistleblower Office prepared me to wait as long as six years or 2,000 days.  Instead the WO miraculously wrapped up its investigation in 44 days.  According to IRS employee S. Newton, badge number 100091224, my claim was closed December 21^st, 2012 which was the Friday before Christmas.  If the IRS was willing to defraud Randall Sorensen of $2,000 then one could surmise that the IRS would NEVER consider a whistleblower claim against ABC Tax Co for $300,000,000. 

Internal Revenue Service employee Director Whitlock committed a federal felony. His office took credit for conducting phantom investigations, issuing false results of investigations that never took place and for denying Randall Sorensen with the government mandated right of honest service. Further, the IRS defrauded every American by failing to investigate blatant earned income credit tax fraud totaling $1 billion dollars.  I’m requesting that Congress hire a Big Four accounting firm to perform an independent investigation regarding malfeasance, misconduct and honest services fraud committed by the Internal Revenue Service.  Thank you for your anticipated cooperation and I will look forward to hearing from you.

Randall Sorensen CPA CFF

Last fall President Obama challenged Mitt Romney to come clean and release his tax returns so voters would know whether he paid his fair share.  I respectfully ask President Obama to come clean regarding the filing of his 1990 tax return when he signed a six-figure contract book deal with Poseidon Press. Failure to do so would be a violation of Title 26-Internal Revenue Code.

GQ Magazine’s November 2009 issue (www.gq.com) reported that President Obama signed a six-figure contract with Poseidon Press on November 28, 1990.  The exact amount was reported as $150,000 by Christopher Andersen in his book Barack and Michelle: Portrait of an American Marriage.  According to Jack Cahill, Barack Obama was advanced $75,000 for the book.  It’s not unusual in the publishing business to receive one-third to one-half of the contract value upfront. However, a $75,000 advance would have required a recent law school graduate strapped with heavy student debt to pay the IRS $25,000 four and ½ months later. Failure to do so would be a violation of Title 26-Internal Revenue Code.  I have been a CPA over 33 years and I’m Certified in Financial Forensics. In 1988 I was hired by the Arizona House of Representative in the Senate Impeachment Trial of Governor Evan Mecham.  My forensic analysis of an improper $80,000 loan from a political protocol fund to a car dealership justified the impeachment of Governor Mecham. 

I reviewed the tax returns of both presidential candidates. (www.barackobama.com) During my analysis of President Obama’s 2001 Individual Tax Return, I found 10 math errors.  All of the errors were simple arithmetic errors that would have been prevented with a computerized program such as Turbo Tax. 

President Obama’s 2001 tax return wasn’t signed by a paid preparer and it would appear it was prepared by President or Ms. Obama.  I determined that the Obamas prepared three drafts of their 2001 tax return.  The first draft calculated an income tax liability of $79,000.  This would have required taxable income of $271,000.  In contrast, President Obama’s website shows 2001 taxable income of $250,000.   President Obama ended up paying income tax on $21,000 of phantom income that resulted in sending Uncle Sam an extra $7,300.  I think Republicans and Democrats will unanimously agree that President Obama is one of the greatest orators of our time.  The same can’t be said regarding President Obama’s skill as a tax preparer!

Based on the fact that President Obama used bits and pieces from three different 2001 tax drafts, made 10 errors, overpaid his taxes by $7,300 by claiming $21,000 of phantom income, it would appear that President Obama lacked the accounting skills to competently prepare his tax return.  If President Obama wasn’t proficient at preparing his taxes in 2001 it’s not a stretch to assume that he wouldn’t have been proficient in 1990.    

I believe President Obama’s may have a skeleton in his tax closet from the mishandling of his est. $75,000 book advance from Poseidon Press in November of 1990.   Only  three tax scenarios exist: 1) filed correctly and paid the IRS $25,000, 2) reported income as passive, failed to pay social security taxes and owes the IRS $41,000 or 3) never received 1099 from the publisher, failed to properly report the income and currently owes the US Treasury $125,000.

I contacted the IRS and they indicated that the tax records may go back to 1990.  Another method to determine if President Obama paid his “fair share” would be to verify his 1990 earnings with the Social Security Administration.  American taxpayers can decide for themselves whether a young Barack Obama should be given a free pass or if he should be held to the same standard as all Americans

Dear Chairman Issa:

Last October the IRS Office of Procurement called and said that (3) high level IRS officials were reviewing the merits of my intellectual property.  In September of 2012, I submitted a “Proposal to Perform Earned Income Credit Compliance Audits on 6.5 Million 2012 Self-Employed”.  Lisa Mordhorst of the Office of Procurement assured me this would only happen if there was a high amount of interest by the IRS.  In the same month, the Whistleblower Office Director Whitlock closed a $2 billion fraud claim in just 8 days!   I believe both Directors Kearns and Whitlock committed honest services fraud.  Listed below is an overview of why they should be terminated:  

IRS Committed Fraud

Government employees have the fiduciary duty to the people they serve to provide them with the intangible right of honest service.  Director Kerns and Whitlock breached their duties.

Examples of Procurement committing honest services fraud:

• Lied about already having same software in place (See p. 3)
• Lied about lack of resources (See p. 3)
• Lied about “real time” testing not being innovative

The last one is laughable. During the 2013 tax season the IRS was only able to verify 3% of income information before issuing 50 million refund checks.  I proposed charging the IRS $3/tax return. This would have prevented the US Treasury from being defrauded a minimum of $1 billion.  Based on 6.5 million tax returns that represented a savings of $154/tax return and a return on investment of +5033%.  After being rejected by the Office of Procurement I sent an email to the IRS on December 28^th, 2012 and offered to WAIVE my $19.5 million processing fee.  The IRS told me that my email proposal could not be evaluated as submitted. Director Kearns was guilty of malfeasance by sitting back and allowing the US Treasury to be defrauded as much as $20 billion when a viable solution was available at a cost to the US Treasury of $0.

Examples of Whistleblower Office committing honest services fraud:

• Former Acting Commmissioner Steven T. Miller lied in his June 20th 2012 memorandum when he said debreifings of whistleblowers would be the rule and not the exception
• Director Whitlock failed to provide a response to a Congressional Inquiry submitted by Senator Kyl
• Director Whitlock responded 44 days late to a Congressional Inquiry submitted by Congressman Schweikert (See p. 4)
• Whistleblower Office refused to answer any questions regarding the status of my $1 billion whistleblower claim
• WO closed a $2 billion whistleblower claim in just 8  days    

IRS Sting Operation

I anticipated being defrauded by the IRS so I set up a sting operation of my own. Specifically, I submitted a sixth whistleblower claim in September of 2012.  Here is how I set a trap for the Whistleblower Office:

• Prepared amended tax returns for ex-wife claiming both children as dependents
• Informed IRS that ex-husband fraudulently claimed head-of-household.  Father needed to provide a home for his children for 183 days.  The actual total was less than 5 days
• IRS agreed and refunded ex-wife $8,337 within 60 days
• Received letter from IRS saying investigation could take several years
• IRS decided the Friday before Christmas to close my claim after only 44 days
• IRS lied about conducting an investigation
• IRS lied about the results of phantom investigation
• IRS lied about attempting to collect delinquent taxes from ex-husband

Congressman Issa, the world now knows that the Internal Revenue Service has morphed into a fraudulent governmental agency.  Congress needs to hold additional IRS hearings to determine whether IRS Directors Kearns and Whitlock committed honest services fraud by lying to the public?   

Sincerely,

Randall C. Sorensen CPA CFF

cc:   Senator Alexander   

       Senator Cruz                                                  

       Senator Grassley      

       Senator Hoeven

       Senator Pryor

       Congressman Boehner

       Congressman Camp

       Congressman Crenshaw

       Congressman Gowdy

       Congressman Marchan

       Congressman Ryan      

Page%203%20Kearns%20Ltr%20to%20Sorensen.jpg 

Page%204%20Whitlock%20Ltr%20to%20Schweikert.jpg

Dear Congressman Issa:

I want to thank you for your tremendous effort in exposing the unethical business practices of the Internal Revenue Service. I’m writing to request that Congress establish the FIRST (Fraudulent Internal Revenue Service Tax) Relief Fund.  Chairman Issa, I estimate there are hundreds of thousands of honest American taxpayers who have been defrauded by the Internal Revenue Service.  I believe Congress has a duty to provide financial restitution to taxpayers who have been victims of the IRS.  Listed below is how the IRS scams billions from taxpayers by shear intimidation and by putting the fear of God into honest Americans. 

 IRS Fraud via Electronic Tax Notices

The IRS sends out hundreds of thousands of tax collection notices. These are electronic letters that are generated from information accumulated by the IRS.  It’s been my experience that those notices are accurate less than 10% of the time and it’s probably closer to 5%. Stated another way, 90%-95% of the notices unnecessarily scare the hell out of honest Americans.  But even worse is the fact that thousands of Americans are going to pay fraudulent tax bills because they don’t have anyone to help them or they are afraid to stand up to the IRS.

 IRS Demanded $557,000 & Clients Owed $290

During the last three years the IRS sent my clients electronic tax notices totaling $557,000.  The actual amount owed by my clients was $290.  Since I don’t fear the little man behind the green curtain, I was able to eliminate nearly 100% of the monies sought by the IRS. Congressman Issa this is a fraud waiting to happen against 140 million taxpayers. The majority of these folks don’t have the luxury of paying a CPA or tax expert to tackle the IRS on their behalf.

 Stop Reverse Tax Gap

Congress commits valuable resources to studying ways to reduce the Tax Gap.  I would implore Congress to study the devastating impact caused by the IRS collecting billions from honest taxpayers via their electronic money machine.  The reason taxpayers send money to the IRS should be based on factual information and not intimidation.

 IRS Targets Grandma with Alzheimers vs Large Tax Corp

Last year I blew the whistle on a national tax preparation company for defrauding the US Treasury of $17 million. The IRS did nothing. In contrast last month the IRS sent my mother a letter indicating if she didn’t file her 2011 tax return the IRS would file one for her. My mother’s 2011 AGI was $0 and her Alzheimer medical care was $41,000,  My mother’s net taxable income was negative ($46,000).  Why doesn’t the IRS spend their so-called limited resources on recovering billions from large tax corporations rather than harass an 81 year old grandmother with Alzheimers?

Chairman Issa, taxpayers who have been defrauded by the IRS should be repaid in full plus interest for any monies collected through intimidation rather than by tax code enforcement.  Please introduce legislation to create the FIRST Relief  Fund.  The Fraudulent Internal Revenue Service Tax Relief Fund will help victims of IRS abuse.  The fund should be funded by Congress and operated by professional experts from the private sector with no previous government employment history.  There are over 400,000 CPA's and another 400,000 tax professionals who could easily fill the demand for competent administrators and investigators.  The STRONG ARM tactics of the IRS need to be retired immediately.  I look forward to hearing you.

Sincerely,

Randall C. Sorensen CPA

cc:   Senator Alexander    Senator Pryor                Congressman Gowdy

       Senator Cruz             Congressman Boehner   Congressman Marchant       

       Senator Grassley       Congressman Camp      Congressman Ryan

       Senator Hoeven        Congressman Crenshaw                

The Treasury Inspector General's Office estimates that the US Treasury is defrauded between $14 and $16 billion each year by obtaining fraudulent earned income credit tax refunds.  Each year 30 million tax filers share a $60 billion dollar pie called Earned Income Credit.  Basically, if you earn between $3,000 and $45,000 and have a dependent child, you qualify for a tax credits between $300 and $7,500. 

How The IRS Is Defrauded

Jane Doe claims $13,720 income from an imaginary cleaning business on her tax return.  Since Jane doesn't have a business, she doesn’t need to purchase any brooms, dust pans, cleaning supplies or mops.  For Jane’s efforts, she will qualify for federal tax credits of $6,600. Before the US Treasury deposits a tax refund of $4,900 into her bank account, they make a deposit into Jane Doe’s social security retirement account for $1,700.  From start to finish, Jane can complete her phantom tax return using phantom income in 15 minutes! 

I contacted the FBI and informed them that tax companies defrauded the US Treasury of $3.7 billion during the 2012 tax season.   Unscrupulous tax preparers don't hesitate to file bogus EIC tax returns defrauding the IRS of $6,000 because they take their $200 fee right off the top.   Tax companies will successfully process 800,000 tax returns that claim phantom income and expenses in order to increase their 2012 income tax refunds. 

I issued a press release entitled "Tax Technology Would Save IRS $3.7 Billion in Next 60 Days".   The article had 881 readers.  This included nearly 75 from the counties of France and Germany.  Why would those countries be so interested in learning about tax fraud technology in the United States?

 By utilizing computers and  electronic bank deposits, anti-American groups can conduct fraud from any place in the world.  

 Potential American Terrorists Tax Frauds

$5,000 Cash Refund or 10 IED’s

The IRS should consider offering EIC tax frauds the choice of receiving $4,900 cash or 10 IED's.   Terrorists shouldn't have to be burdened with going to the bank and then having to negotiate the purchase of improvised explosive devices. 

If terrorists obtain 40,000 fraudulent EIC tax refunds they will receive approx. $200 million.  According to Wikipedia the avg. cost of an IED is $500.  As a result of the IRS ineptness at preventing tax fraud, the US Treasury may have just funded 400,000 IED's.   Why should American troops potentially suffer?

I believe the FBI can successfully identify tax frauds who are funneling money to fund terrorism.  The easiest frauds to identify are self-employed 's who don't have any business expenses.  Identifying  terrorists can be done without any profiling.  The only requirement is committing tax fraud.  The FBI should investigate whether bomber Tamerlan Tsarnaev received funding via fraudulent tax returns.

Why is the IRS Afraid to Use Technology to Protect Troops?

The Internal Revenue Service needs to identify anti-American groups that could be funding terrorism.  The Supreme Court has said that if you willfully defraud the US government by filing false tax returns you can be deported.  My company has offered to test ALL 27 million EITC tax filers.  Based on the beta test we completed, we can test 30 million in 30 min.  Why is the IRS afraid to utilize technology that could prevent harm to American troops?

Last fall President Obama challenged Mitt Romney to come clean and release his tax returns so voters would know whether he paid his fair share.  I respectfully ask President Obama to come clean regarding the filing of his 1990 tax return when he signed a six-figure contract book deal with Poseidon Press. Failure to do so would be a violation of Title 26-Internal Revenue Code.

GQ Magazine’s November 2009 issue (www.gq.com) reported that President Obama signed a six-figure contract with Poseidon Press on November 28, 1990.  The exact amount was reported as $150,000 by Christopher Andersen in his book Barack and Michelle: Portrait of an American Marriage.  According to Jack Cahill, Barack Obama was advanced $75,000 for the book.  It’s not unusual in the publishing business to receive one-third to one-half of the contract value upfront. However, a $75,000 advance would have required a recent law school graduate strapped with heavy student debt to pay the IRS $25,000 four and ½ months later. Failure to do so would be a violation of Title 26-Internal Revenue Code.  I have been a CPA over 33 years and I’m Certified in Financial Forensics. In 1988 I was hired by the Arizona House of Representative in the Senate Impeachment Trial of Governor Evan Mecham.  My forensic analysis of an improper $80,000 loan from a political protocol fund to a car dealership justified the impeachment of Governor Mecham. 

I reviewed the tax returns of both presidential candidates. (www.barackobama.com) During my analysis of President Obama’s 2001 Individual Tax Return, I found 10 math errors.  All of the errors were simple arithmetic errors that would have been prevented with a computerized program such as Turbo Tax. 

President Obama’s 2001 tax return wasn’t signed by a paid preparer and it would appear it was prepared by President or Ms. Obama.  I determined that the Obamas prepared three drafts of their 2001 tax return.  The first draft calculated an income tax liability of $79,000.  This would have required taxable income of $271,000.  In contrast, President Obama’s website shows 2001 taxable income of $250,000.   President Obama ended up paying income tax on $21,000 of phantom income that resulted in sending Uncle Sam an extra $7,300.  I think Republicans and Democrats will unanimously agree that President Obama is one of the greatest orators of our time.  The same can’t be said regarding President Obama’s skill as a tax preparer!

Based on the fact that President Obama used bits and pieces from three different 2001 tax drafts, made 10 errors, overpaid his taxes by $7,300 by claiming $21,000 of phantom income, it would appear that President Obama lacked the accounting skills to competently prepare his tax return.  If President Obama wasn’t proficient at preparing his taxes in 2001 it’s not a stretch to assume that he wouldn’t have been proficient in 1990.    

I believe President Obama’s may have a skeleton in his tax closet from the mishandling of his est. $75,000 book advance from Poseidon Press in November of 1990.   Only  three tax scenarios exist: 1) filed correctly and paid the IRS $25,000, 2) reported income as passive, failed to pay social security taxes and owes the IRS $41,000 or 3) never received 1099 from the publisher, failed to properly report the income and currently owes the US Treasury $125,000.

I contacted the IRS and they indicated that the tax records may go back to 1990.  Another method to determine if President Obama paid his “fair share” would be to verify his 1990 earnings with the Social Security Administration.  American taxpayers can decide for themselves whether a young Barack Obama should be given a free pass or if he should be held to the same standard as all Americans