Judge announces that Yakama tobacco is subject to federal taxes
There was a ruling be a federal judge in Spokane that could possibly open a Yakama Nation tobacco company to tens of millions of dollars of tax liability.
A United States District Judge, Rosanna Malouf Peterson, mentioned last week that King Mountain Tobacco Company was not exempt from paying federal excise taxes on their cigarettes. There was a case that was filed last year in which prosecutors had claimed that the company owes over $23 million in taxes since the year 2009. King Mountain Tobacco had its own reasoning as to why they didn’t pay.
King Mountain Tobacco Company had mentioned in the argument that the federal law bars taxes on income that comes from trust land, like logging or even tobacco growing. The company had also mentioned the 1855 treaty between the Yakamas and the United States government.
Judge Rosanna Malouf Peterson mentioned that only a portion of the tobacco that is sold by King Mountain Tobacco Company is grown on the reservation that is mentioned. A majority of the tobacco that is grown to be sold by the King Mountain Tobacco Company is imported from Virginia. This fact obligates the tobacco company to step up and pay the federal taxes that they owe.
As of now, it is not known whether or not the King Mountain Tobacco Company has a response in the argument, but it is looking like they will have to comply with the judge’s orders.
Categories: Federal Tax, Income Tax, Tax Evasion, Tax Law Tags: avoiding taxes, corporate tax, federal income tax, federal tax, federal tax fraud, income tax, tax evasion
Comptroller applicant withdraws more than $34,000 federal tax lien
There is one city comptroller in Grand Rapids that is withdrawing from consideration following a MLive inquire about a federal tax lien for his property.
The comptroller applicant named Mark Pospiech disclosed delinquent city income taxes on his application. Supposedly, he also owns $34,813 in federal income tax for 2009-2011, according to a tax lien that was filed in November of 2012 with the Kent County register of deeds.
Jerry Czaja, the county’s chief deputy register, says that it looks pretty clear that Pospiech didn’t pay his 1040 tax. When a person doesn’t pay their 1040 tax, the federal government will file a lien in the office, and the lien will become attached to any interest they have in any property. Currently, it doesn’t seem like a discharge will be recorded to release the lien.
Pospiech was one of the three applicants for the position of comptroller that was vacated when Donijo DeJonge stepped down from the position in December. He responded to MLive calls about the talked about lien with a written statement that he is going to withdraw from consideration of the comptroller position.
Pospiech said that throughout the application and interview process for the comptroller position, he said that the focus of the Press was more on his situation, eclipsing his abilities for the position. He believes that there are a variety of factors that have led to his current tax issues, but those factors are personal, and shouldn’t be drawn out by public opinion.
Categories: Federal Tax, Income Tax, State Tax, Tax Evasion, Tax Law Tags: avoiding taxes, corporate tax, federal tax, federal tax fraud, filing taxes, income tax, tax code, tax fraud
Cyprus Rejects Controversial Tax on Deposits
The parliament of Cyprus rejected a controversial bank deposit levy earlier this week, a precondition for receiving a very pricey bailout. This quickly tore up the four day old loan deal the country already negotiated with European and international creditors that is need badly to break off default and a meltdown in its financial sector.
Many people believe that the stock market’s reaction to the Cyprus banking crisis was a case of willful denial, according to Mark Hulbert’s discussion on Markets Hub.
Coming in after days of political talks in the Cypriot capital, the vote means that a new deal, if it’s possible to even make one, will have to be done in days or Cyprus might face a total collapse of its banks. Many analysts believe that if that is to happen, it will send the tiny nation flailing out of the Eurozone.
After a long two hour debate on the divisive federal tax, there were 19 lawmakers from Cyprus’ Democratic Rally party, led by President Nicos Anastasiades that were abstained from the vote; this decision made sure that the plan would be rejected. The rest of the lawmakers in Cyrpus’ 56 seats of parliament had voted against the plan.
The rejection of this particular bill will only leave Cyprus with a few options. They could renegotiate the deal on the tax deposits with the European creditors, but they are also forming a Plan B that involves support for its banks from Russia.
Categories: Federal Tax, Income Tax, State Tax Tags: avoiding taxes, federal income tax, federal tax, income tax, tax law